UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06499

Name of Fund: BlackRock MuniYield California Fund, Inc. (MYC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield California Fund, Inc., 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2014

Date of reporting period: 07/31/2014

Item 1 – Report to Stockholders

ANNUAL REPORT

Table of Contents

Shareholder Letter

Dear Shareholder,

The latter part of 2013 was a strong period for equities and other risk assets such as high yield bonds, despite the mixed tone of economic and financial news and uncertainty as to when and by how much the U.S. Federal Reserve would begin to gradually reduce (or “taper”) its asset purchase programs. Stock markets rallied in September when the Fed defied investors’ expectations with its decision to delay tapering. The momentum was disrupted temporarily, however, when the U.S. debt ceiling debate led to a partial government shutdown, roiling financial markets globally until a compromise was struck in mid-October. The remainder of 2013 was generally positive for developed market stocks, while fixed income and emerging market investments struggled as Fed tapering became increasingly imminent. When the central bank ultimately announced its tapering plans in mid-December, equity investors reacted positively, as this action signaled the Fed’s perception of real improvement in the economy.

Most asset classes continued to move higher in 2014 despite the pull back in Fed stimulus. The year got off to a rocky start, however. A number of emerging economies showed signs of financial stress while facing the broader headwind of diminishing global liquidity. These risks, combined with disappointing U.S. economic data, caused equities to decline in January while bond markets found renewed strength from investors seeking relatively safer assets.

Although these headwinds persisted, equities were back on the rise in February as investors were encouraged by a one-year extension of the U.S. debt ceiling and market-friendly comments from the new Fed Chairwoman, Janet Yellen. While it was clear that U.S. economic data had softened, investors were assuaged by increasing evidence that the trend was temporary and weather-related, and continued to take on risk given expectations that growth would pick up later in the year.

In the months that followed, interest rates trended lower and bond prices climbed higher in the modest growth environment. Financial markets exhibited a remarkably low level of volatility despite rising geopolitical risks and mixed global economic news. Tensions in Russia and Ukraine and signs of decelerating growth in China caused some turbulence, but markets were resilient as investors focused on signs of improvement in the U.S. recovery, stronger corporate earnings and increased merger-and-acquisition activity. Importantly, investors were comforted by comments from the Fed offering reassurance that no changes to short-term interest rates were on the horizon.

In the low-rate environment, investors looked to equities as a source of yield, pushing major indices to record highs. As stock prices moved higher, investors soon became wary of stretched valuations and a new theme emerged in the markets. Stocks that had experienced significant price appreciation in 2013, particularly growth and momentum names, broadly declined as investors fled to stocks with cheaper valuations. This rotation resulted in the strongest performers of 2013 struggling most in 2014, and vice versa. Especially hard hit were U.S. small cap and European stocks where earnings growth had not kept pace with recent market gains. In contrast, emerging market stocks benefited from the trend. As a number of developing countries took steps to stabilize their finances, investors looked past political risks — hardly batting an eye at a military coup in Thailand — and poured back into these attractively priced investments.

Asset prices tend to be more vulnerable to bad news when investors believe valuations are stretched. Consequently, markets came under pressure in July as geopolitical tensions intensified with the tragic downing of a Malaysian civilian airliner over Ukraine, the continued fragmentation of Iraq and a ground war between Israel and Hamas in Gaza. As the period came to a close, financial troubles in Argentina and Portugal as well as new U.S. and European sanctions on Russia were additional headwinds for the markets.

Despite a host of challenges, most asset classes generated solid returns for the six- and 12-month periods ended July 31, 2014, with equities generally outperforming fixed income. Emerging market equities delivered impressive gains. Developed markets also performed well, although small cap stocks lagged due to relatively higher valuations. Most fixed income assets produced positive returns even as the Fed reduced its open-market purchases. Tax-exempt municipal bonds benefited from a favorable supply-and-demand environment. Short-term interest rates remained near zero, keeping yields on money market securities close to historic lows.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s world.

Sincerely,

  

Rob Kapito
President, BlackRock Advisors, LLC

Asset prices pushed higher over the period despite modest global growth, geopolitical risks and a shift toward tighter U.S. monetary policy.

Rob Kapito

President, BlackRock Advisors, LLC

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Total Returns as of July 31, 2014

				6-month				12-month
U.S. large cap equities (S&P 500® Index)					9.44	%			16.94	%
U.S. small cap equities (Russell 2000® Index)					(0.30	)			8.56
International equities (MSCI Europe, Australasia, Far East Index)					7.03				15.07
Emerging market equities (MSCI Emerging Markets Index)					15.70				15.32
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)					0.02				0.05
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)					2.71				3.50
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)					2.16				3.97
Tax-exempt municipal bonds (S&P Municipal Bond Index)					4.11				7.38
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)					3.33				8.18

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

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THIS PAGE NOT PART OF YOUR FUND REPORT

3

Municipal Market Overview

For the Reporting Period Ended July 31, 2014

Municipal Market Conditions

The latter part of 2013 was a generally negative period for municipal bond performance. Heightened uncertainty as to when the U.S. Federal Reserve would begin to reduce its bond-buying stimulus program (and by how much) caused interest rates to be volatile and generally move higher. (Bond prices fall as rates rise.) Municipal bond mutual funds saw strong outflows through year end when the Fed finally announced its plan to begin the gradual reduction of stimulus in January of 2014. Relieved of anxiety around policy changes, investors again sought the relative safety of municipal bonds in the New Year. Surprisingly, interest rates trended lower in the first half of 2014 even as the Fed pulled back on its open-market bond purchases. Softer U.S. economic data amid one of the harshest winters on record, coupled with reassurance from the Fed that short-term rates would remain low for a considerable amount of time, resulted in stronger demand for fixed income investments, with municipal bonds being one of the stronger performing sectors. Still, for the 12-month period ended July 31, 2014, municipal bond funds saw net outflows of approximately $35 billion (based on data from the Investment Company Institute).

High levels of interest rate volatility in the latter half of 2013, particularly on the long-end of the curve, resulted in a curtailment of tax-exempt issuance during the period. However, from a historical perspective, total new issuance for the 12 months ended July 31 remained relatively strong at $303 billion (but meaningfully lower than the $364 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 40%) as issuers took advantage of lower interest rates to reduce their borrowing costs.	S&P Municipal Bond Index Total Returns as of July 31, 2014
	6 months:	4.11%
	12 months:	7.38%

A Closer Look at Yields
 

 

From July 31, 2013 to July 31, 2014, muni yields on AAA-rated 30-year municipal bonds decreased by 90 basis points (“bps”) from 4.20% to 3.30%, while 10-year rates decreased 41 bps from 2.67% to 2.26% on and 5-year rates fell 5 bps from 1.27% to 1.22% (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve remained relatively steep over the 12-month period even as the spread between 2- and 30-year maturities flattened by 78 bps and the spread between 2- and 10-year maturities flattened by 29 bps.

During the same time period, U.S. Treasury rates fell by 32 bps on 30-year and 2 bps on 10-year bonds, while moving up 37 bps in 5-years. Accordingly, tax-exempt municipal bonds outperformed Treasuries across the yield curve as investors sought to reduce interest rate risk later in the period. On the short and intermediate parts of the curve, the outperformance of municipal bonds versus Treasuries was driven largely by a supply/demand imbalance within the municipal market and a rotation from long-duration assets into short- and intermediate-duration investments, which are less sensitive to interest rate movements. Additionally, municipal bonds benefited from the increased appeal of tax-exempt investing in the new higher tax rate environment. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise. The municipal market continues to be an attractive avenue for investors seeking yield in the low-rate environment. However, opportunities have not been as broad-based as in 2011 and 2012, warranting a more tactical approach going forward.

Financial Conditions of Municipal Issuers Continue to Improve

Following an extended period of nation-wide austerity and de-leveraging as states sought to balance their budgets, 16 consecutive quarters of positive revenue growth coupled with the elimination of more than 750,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate structure and security selection remain imperative amid uncertainty in a modestly improving economic environment.

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

4

ANNUAL REPORT

JULY 31, 2014

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and net asset value (“NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which will be based on short-term interest rates, will normally be lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s shareholders will benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Fund’s financing cost of leverage is significantly lower than the income earned on the Fund’s longer-term investments acquired from leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Fund’s return on assets purchased with leverage proceeds, income to shareholders will be lower than if the Fund had not used leverage. Furthermore, the value of the Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Fund’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates

can influence the Fund’s NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s intended leveraging strategy will be successful.

Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the net asset value and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, the Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit the Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. The Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOBs”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940 (the “1940 Act”), each Fund is permitted to issue debt up to 33¹⁄3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of the Fund’s obligations under the TOB (including accrued interest), a TOB will not be considered a senior security and will not be subject to the foregoing limitations and requirements under the 1940 Act.     

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including financial futures contracts, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative

financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders and/or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

5

Fund Summary as of July 31, 2014	BlackRock Muni New York Intermediate Duration Fund, Inc.

Fund Overview

BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide shareholders with high current income exempt from federal income tax and New York State and New York City personal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

•

For the 12-month period ended July 31, 2014, the Fund returned 10.27% based on market price and 11.40% based on Net Asset Value (“NAV”). For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 9.82% based on market price and 10.46% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

•

Tax-exempt rates declined during the period, supporting generally positive performance for municipal bonds. (Bond prices rise when rates fall.) Municipal bonds with longer durations (and greater sensitivity to interest rate movements) tended to provide the strongest returns. In this environment, the Fund’s exposure to lower coupon and longer duration bonds contributed positively to results. The Fund’s exposure to the long end of the yield curve (within the Fund’s intermediate-duration mandate) was a significant contributor to total return, as longer-dated yields declined more than shorter-maturity yields. This positioning allowed the Fund to maximize its income and also benefit from the flattening of the yield curve.

•

The Fund’s holdings in the health care, corporate and transportation sectors — the better performing areas of the market — were particularly beneficial. The Fund’s significant exposure to high-quality (A-rated) issues had a positive impact on results as the market’s strong performance during the period was concentrated in this credit quality tier. Additionally, the Fund benefited from income generated from coupon payments on its portfolio of municipal bond holdings. The use of leverage contributed to performance as well.

•

The Fund’s modest exposure to Puerto Rico government-related credits in the earlier part of the period detracted from performance, as credit spreads on these bonds widened materially due to investors’ lack of confidence and a weak local economy. The Fund sold its exposure to these securities early in the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on New York Stock Exchange (“NYSE”)				MNE
Initial Offering Date				August 1, 2003
Yield on Closing Market Price as of July 31, 2014 ($13.64)1				5.06%
Tax Equivalent Yield2				10.24%
Current Monthly Distribution per Common Share3				$0.0575
Current Annualized Distribution per Common Share3				$0.6900
Economic Leverage as of July 31, 20144				35%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.59%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

3

The distribution rate is not constant and is subject to change.

4

Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

6

ANNUAL REPORT

JULY 31, 2014

	BlackRock Muni New York Intermediate Duration Fund, Inc.

Market Price and Net Asset Value Per Share Summary

				7/31/14				7/31/13				Change				High				Low
Market Price				$	13.64			$	13.06				4.44	%		$	14.12			$	12.49
Net Asset Value				$	15.34			$	14.54				5.50	%		$	15.39			$	13.95

 

Market Price and Net Asset Value History For the Past Five Years

 

    

    

Overview of the Fund’s Long-Term Investments

Sector Allocation				7/31/14				7/31/13
County/City/Special District/School District					21	%			17	%
Transportation					20				20
Education					15				12
Health					13				13
Utilities					11				12
State					8				13
Corporate					8				7
Housing					4				6

For Fund compliance purposes, the Fund’s sector classifications refer to any or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Call/Maturity Schedule3
Calendar Year Ended December 31,
2014					3	%
2015					1
2016					8
2017					5
2018					9

3

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1				7/31/14				7/31/13
AAA/Aaa					7	%			6	%
AA/Aa					54				47
A					22				32
BBB/Baa					6				8
BB/Ba					5				3
N/R2					6				4

1

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

2

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was $2,266,516, representing 2%, and $530,726, representing 1%, respectively, of the Fund’s long-term investments.

ANNUAL REPORT

JULY 31, 2014

7

Fund Summary as of July 31, 2014	BlackRock MuniYield Arizona Fund, Inc.

Fund Overview

BlackRock MuniYield Arizona Fund, Inc.’s (MZA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and Arizona income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Arizona income taxes. Under normal market conditions, the Fund expects to invest at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

•

For the 12-month period ended July 31, 2014, the Fund returned 19.50% based on market price and 13.63% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 12.67% based on market price and 12.42% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium to NAV during the period, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

•

Positive contributors to performance included the Fund’s exposure to the long-end of the municipal yield curve, as the curve flattened over the period. (Long-rates fell much more than short and intermediate rates.) The Fund’s duration exposure and corresponding interest rate sensitivity also added to returns as municipal rates declined. (Bond prices rise as rates fall.) The income generated from the Fund’s holdings of Arizona state tax-exempt municipal bonds positively contributed to performance as well.

•

The Fund’s modest exposure to Puerto Rico government-related credits in the earlier part of the period detracted from performance as credit spreads on these bonds widened materially due to investors’ lack of confidence and a weak local economy. The Fund sold its exposure to these securities early in the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE MKT				MZA
Initial Offering Date				October 29, 1993
Yield on Closing Market Price as of July 31, 2014 ($15.00)1				5.56%
Tax Equivalent Yield2				10.29%
Current Monthly Distribution per Common Share3				$0.0695
Current Annualized Distribution per Common Share3				$0.8340
Economic Leverage as of July 31, 20144				38%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 45.97%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

3

The distribution rate is not constant and is subject to change.

4

Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

8

ANNUAL REPORT

JULY 31, 2014

	BlackRock MuniYield Arizona Fund, Inc.

Market Price and Net Asset Value Per Share Summary

				7/31/14				7/31/13				Change				High				Low
Market Price				$	15.00			$	13.33				12.53	%		$	16.52			$	12.66
Net Asset Value				$	14.52			$	13.57				7.00	%		$	14.61			$	12.92

 

Market Price and Net Asset Value History For the Past Five Years

 

    

    

Overview of the Fund’s Long-Term Investments

Sector Allocation				7/31/14				7/31/13
County/City/Special District/School District					25	%			29	%
Utilities					21				20
State					14				17
Health					13				11
Education					13				12
Corporate					11				8
Transportation					3				2
Housing					—				1

For Fund compliance purposes, the Fund’s sector classifications refer to any or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Call/Maturity Schedule3
Calendar Year Ended December 31,
2014					5	%
2015					8
2016					4
2017					2
2018					29

3

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1				7/31/14				7/31/13
AAA/Aaa					13	%			13	%
AA/Aa					47				41
A					29				34
BBB/Baa					7				8
BB/Ba					1				—
B					—				1
N/R2					3				3

1

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

2

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was $1,066,200, representing 1%, and $1,120,100, representing 1%, respectively, of the Fund’s long-term investments.

ANNUAL REPORT

JULY 31, 2014

9

Fund Summary as of July 31, 2014	BlackRock MuniYield California Fund, Inc.

Fund Overview

BlackRock MuniYield California Fund, Inc.’s (MYC) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

•

For the 12-month period ended July 31, 2014, the Fund returned 13.86% based on market price and 16.87% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 15.36% based on market price and 15.42% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

•

Tax-exempt rates declined during the period, supporting generally positive performance for municipal bonds. (Bond prices rise when rates fall.) Municipal bonds with longer durations (and greater sensitivity to interest rate movements) tended to provide the strongest returns. In this environment, the Fund’s exposure to the long end of the yield curve had a positive impact on performance. Security selection also helped performance, particularly with respect to the Fund’s holdings of high quality school district issues, which performed well amid the improvement in the State of California’s finances. In addition, the Fund’s holdings in the health care, education, transportation and utilities sectors contributed to returns. The use of leverage, which was achieved through the use of tender option bonds, contributed to performance as well.

•

In addition, the Fund’s cash reserves were generally maintained at a minimal level. However, to the extent reserves were held, the cash holdings added little in the form of additional yield and provided no price appreciation in a generally positive period for the municipal market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE				MYC
Initial Offering Date				February 28, 1992
Yield on Closing Market Price as of July 31, 2014 ($14.87)1				6.38%
Tax Equivalent Yield2				13.00%
Current Monthly Distribution per Common Share3				$0.079
Current Annualized Distribution per Common Share3				$0.948
Economic Leverage as of July 31, 20144				35%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.93%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

3

The distribution rate is not constant and is subject to change.

4

Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

10

ANNUAL REPORT

JULY 31, 2014

	BlackRock MuniYield California Fund, Inc.

Market Price and Net Asset Value Per Share Summary

				7/31/14				7/31/13				Change				High				Low
Market Price				$	14.87			$	13.94				6.67	%		$	15.54			$	13.16
Net Asset Value				$	16.38			$	14.96				9.49	%		$	16.47			$	14.31

 

Market Price and Net Asset Value History For the Past Five Years

 

    

    

Overview of the Fund’s Long-Term Investments

Sector Allocation				7/31/14				7/31/13
County/City/Special District/School District					38	%			41	%
Utilities					20				22
Education					13				10
Health					12				11
State					9				8
Transportation					6				6
Corporate					1				1
Housing					1				1

For Fund compliance purposes, the Fund’s sector classifications refer to any or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Call/Maturity Schedule2
Calendar Year Ended December 31,
2014					1	%
2015					2
2016					12
2017					9
2018					17

2

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1				7/31/14				7/31/13
AAA/Aaa					7	%			10	%
AA/Aa					72				67
A					19				22
BBB/Baa					2				1

1

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

ANNUAL REPORT

JULY 31, 2014

11

Fund Summary as of July 31, 2014	BlackRock MuniYield Investment Fund

Fund Overview

BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund primarily invests in municipal bonds that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

•

For the 12-month period ended July 31, 2014, the Fund returned 14.98% based on market price and 16.75% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.52% based on market price and 14.95% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

•

Tax-exempt rates declined during the period, supporting generally positive performance for municipal bonds. (Bond prices rise when rates fall.) The municipal yield curve flattened, meaning that longer-dated yields declined more than shorter-maturity yields. In this environment, the Fund’s duration exposure (sensitivity to interest rate movements) had a positive impact on performance. The Fund’s longer-dated holdings in the health care, education and transportation sectors experienced strong market appreciation, aiding performance. The Fund also benefited from its holdings in the State of California, as the continued improvement in the State’s economy was a catalyst for market appreciation during the period.

•

The Fund’s modest exposure to Puerto Rico government-related credits in the earlier part of the period detracted from performance, as credit spreads on these bonds widened materially due to investors’ lack of confidence and the weak local economy. The Fund sold its exposure to these securities early in the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE				MYF
Initial Offering Date				February 28, 1992
Yield on Closing Market Price as of July 31, 2014 ($14.56)1				6.51%
Tax Equivalent Yield2				11.50%
Current Monthly Distribution per Common Share3				$0.079
Current Annualized Distribution per Common Share3				$0.948
Economic Leverage as of July 31, 20144				39%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

3

The distribution rate is not constant and is subject to change.

4

Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

12

ANNUAL REPORT

JULY 31, 2014

	BlackRock MuniYield Investment Fund

Market Price and Net Asset Value Per Share Summary

				7/31/14				7/31/13				Change				High				Low
Market Price				$	14.56			$	13.55				7.45	%		$	15.08			$	12.51
Net Asset Value				$	15.56			$	14.26				9.12	%		$	15.63			$	13.61

 

Market Price and Net Asset Value History For the Past Five Years

 

    

    

Overview of the Fund’s Long-Term Investments

Sector Allocation				7/31/14				7/31/13
Transportation					26	%			21	%
County/City/Special District/School District					21				21
Utilities					17				20
Health					15				14
Education					7				9
State					6				7
Corporate					4				4
Housing					3				3
Tobacco					1				1

For Fund compliance purposes, the Fund’s sector classifications refer to any or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Call/Maturity Schedule2
Calendar Year Ended December 31,
2014					2	%
2015					—
2016					1
2017					2
2018					14

2

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1				7/31/14				7/31/13
AAA/Aaa					7	%			9	%
AA/Aa					60				60
A					25				25
BBB/Baa					5				5
BB/Ba					1				—
N/R					2				1

1

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

ANNUAL REPORT

JULY 31, 2014

13

Fund Summary as of July 31, 2014	BlackRock MuniYield New Jersey Fund, Inc.

Fund Overview

BlackRock MuniYield New Jersey Fund, Inc.’s (MYJ) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes and New Jersey personal income tax as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may subject to the federal alternative minimum tax) and New Jersey personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

•

For the 12-month period ended July 31, 2014, the Fund returned 13.99% based on market price and 15.27% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 12.38% based on market price and 13.86% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

•

Tax-exempt rates declined during the period, supporting generally positive performance for municipal bonds. (Bond prices rise when rates fall.) The municipal yield curve flattened, meaning that longer-dated yields declined more than shorter-maturity yields. In this environment, the Fund’s duration exposure (sensitivity to interest rate movements) had a positive impact on performance. The Fund’s longer-dated holdings in the health care, education and transportation sectors experienced strong market appreciation, aiding performance.

•

The Fund’s modest exposure to Puerto Rico government-related credits in the earlier part of the period detracted from performance, as credit spreads on these bonds widened materially due to investors’ lack of confidence and the weak local economy. The Fund sold its exposure to these securities early in the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE				MYJ
Initial Offering Date				May 1, 1992
Yield on Closing Market Price as of July 31, 2014 ($14.67)1				6.13%
Tax Equivalent Yield2				11.90%
Current Monthly Distribution per Common Share3				$0.075
Current Annualized Distribution per Common Share3				$0.900
Economic Leverage as of July 31, 20144				38%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 48.48%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

3

The distribution rate is not constant and is subject to change.

4

Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

14

ANNUAL REPORT

JULY 31, 2014

	BlackRock MuniYield New Jersey Fund, Inc.

Market Price and Net Asset Value Per Share Summary

				7/31/14				7/31/13				Change				High				Low
Market Price				$	14.67			$	13.74				6.77	%		$	15.30			$	12.67
Net Asset Value				$	16.11			$	14.92				7.98	%		$	16.19			$	14.25

 

Market Price and Net Asset Value History For the Past Five Years

 

    

    

Overview of the Fund’s Long-Term Investments

Sector Allocation				7/31/14				7/31/13
Transportation					33	%			26	%
State					20				27
Education					17				14
County/City/Special District/School District					12				14
Health					8				9
Corporate					7				4
Housing					2				5
Utilities					1				1

For Fund compliance purposes, the Fund’s sector classifications refer to any or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Call/Maturity Schedule3
Calendar Year Ended December 31,
2014					3	%
2015					4
2016					1
2017					7
2018					11

3

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1				7/31/14				7/31/13
AAA/Aaa					5	%			4	%
AA/Aa					38				36
A					44				52
BBB/Baa					10				7
B					1				—
N/R2					2				1

1

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

2

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of July 31, 2014 and July 31, 2013, the market value of unrated securities deemed by the investment advisor to be investment grade was $7,267,541, representing 2%, and $3,519,770, representing 1%, respectively, of the Fund’s long-term investments.

ANNUAL REPORT

JULY 31, 2014

15

Schedule of Investments July 31, 2014	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York — 133.7%
Corporate — 11.9%
City of New York New York Industrial Development Agency, ARB, British Airways PLC Project, AMT, 7.63%, 12/01/32				$	1,000			$	1,005,200
City of New York New York Industrial Development Agency, Refunding RB, Terminal One Group Association Project, AMT (a):
5.50%, 1/01/18					1,000				1,067,390
5.50%, 1/01/21					250				265,820
5.50%, 1/01/24					1,000				1,060,500
County of Essex New York Industrial Development Agency, Refunding RB, International Paper Co. Project, Series A, AMT, 5.20%, 12/01/23					1,000				1,034,750
New York State Energy Research & Development Authority, Refunding RB (NPFGC):
Brooklyn Union Gas/Keyspan, Series A, AMT, 4.70%, 2/01/24					500				525,205
Rochester Gas & Electric Corp., Series C, 5.00%, 8/01/32 (a)					1,000				1,074,970
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series B, 4.00%, 11/01/24					500				503,690
Utility Debt Securitization Authority, Refunding RB, New York Restructuring, Series E, 5.00%, 12/15/32					1,000				1,156,120
									7,693,645
County/City/Special District/School District — 27.9%
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.00%, 10/01/24					1,000				1,054,730
City of New York New York, GO, Refunding:
Fiscal 2013, Series J, 5.00%, 8/01/23					2,000				2,397,780
Series E, 5.25%, 8/01/22					2,000				2,421,040
Series E, 5.00%, 8/01/30					1,250				1,414,300
Series H, 5.00%, 8/01/25					1,000				1,181,880
City of New York New York, GO:
Sub-Series A-1, 5.00%, 8/01/33					700				783,335
Sub-Series B-1, 5.25%, 9/01/22					750				867,053
Sub-Series I-1, 5.50%, 4/01/21					1,500				1,775,130
Sub-Series I-1, 5.13%, 4/01/25					750				869,025
City of New York New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35					120				124,958
City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/31					1,500				1,532,790
City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22					750				826,095
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47					1,000				1,137,630

 

Municipal Bonds				Par (000)				Value
New York (continued)
County/City/Special District/School District (concluded)
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.00%, 11/15/31				$	1,000			$	1,091,010
United Nations Development Corp., Refunding RB, Series A, 4.25%, 7/01/24					500				531,660
									18,008,416
Education — 23%
Build NYC Resource Corp., RB, Series A:
Bronx Charter School For Excellence Project, 3.88%, 4/15/23					505				458,914
South Bronx Charter School For International Cultures and The Arts Project, 5.00%, 4/01/33					750				760,485
County of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing, 6.00%, 10/01/31					1,000				1,150,660
County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 7/01/30					1,000				1,131,190
County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 3/01/21					1,000				1,115,190
County of Saratoga New York, Refunding RB, Skidmore College Project, Series B, 5.00%, 7/01/31					500				560,590
County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 7/01/32					940				1,036,735
New York City Trust for Cultural Resources, Refunding RB, American Museum of Natural History, Series A, 5.00%, 7/01/32					500				577,785
New York State Dormitory Authority, RB:
Convent of the Sacred Heart (AGM), 4.00%, 11/01/18					880				981,112
Convent of the Sacred Heart (AGM), 5.00%, 11/01/21					120				142,577
Fordham University, Series A, 5.25%, 7/01/25					500				581,490
Mount Sinai School of Medicine, 5.50%, 7/01/25					1,000				1,106,010
Mount Sinai School of Medicine, Series A (NPFGC), 5.15%, 7/01/24					250				287,205
New York State Dormitory Authority, Refunding RB:
Fordham University, 5.00%, 7/01/29					375				423,791
Fordham University, 5.00%, 7/01/30					300				336,354
The Culinary Institute of America, 5.00%, 7/01/28					500				546,390
Pace University, Series A, 5.00%, 5/01/27					1,000				1,067,830
State of New York Dormitory Authority, RB, Touro College & University System Obligation Group, Series A, 4.13%, 1/01/30					1,000				993,360
State of New York Dormitory Authority, Refunding RB, Series A:
State University Dormitory Facilities, 5.25%, 7/01/30					1,050				1,198,302
Teachers College, 5.00%, 7/01/31					375				415,778
									14,871,748

Portfolio Abbreviations

AGC AGM AMBAC AMT ARB BARB BHAC CAB COP

Assured Guaranty Corp. Assured Guaranty Municipal Corp. American Municipal Bond Assurance Corp. Alternative Minimum Tax (subject to) Airport Revenue Bonds Building Aid Revenue Bonds Berkshire Hathaway Assurance Corp. Capital Appreciation Bonds Certificates of Participation

EDA ERB GARB GO HFA IDA IDB IDRB ISD

Economic Development Authority Education Revenue Bonds General Airport Revenue Bonds General Obligation Bonds Housing Finance Agency Industrial Development Authority Industrial Development Board Industrial Development Revenue Bonds Independent School District

LRB M/F NPFGC PILOT RB S/F SONYMA Syncora

Lease Revenue Bonds Multi-Family National Public Finance Guarantee Corp. Payment in Lieu of Taxes Revenue Bonds Single-Family State of New York Mortgage Agency Syncora Guarantee

See Notes to Financial Statements.

16

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (continued)	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York (continued)
Health — 20.0%
City of New York New York Industrial Development Agency, RB, PSCH, Inc. Project, 6.20%, 7/01/20				$	1,415			$	1,414,858
County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 4/01/21					215				248,497
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.25%, 7/01/25					1,000				1,121,710
County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A, 5.88%, 2/01/18					325				325,884
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 4.75%, 12/01/14					150				150,432
County of Suffolk New York Industrial Development Agency, Refunding RB, Jefferson’s Ferry Project, 4.63%, 11/01/16					800				853,120
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
Remarketing, Series A, 5.00%, 11/01/24					910				1,004,649
Remarketing, Series A, 5.00%, 11/01/30					650				692,627
Series B, 6.00%, 11/01/30					240				272,110
County of Westchester New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series D-1, 6.80%, 7/01/19					515				517,601
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:
3.00%, 1/01/18					500				514,925
4.00%, 1/01/23					480				497,717
5.00%, 1/01/28					875				927,990
New York State Dormitory Authority, RB:
New York State Association for Retarded Children, Inc., Series A, 5.30%, 7/01/23					450				504,959
New York University Hospitals Center, Series A, 5.00%, 7/01/22					1,000				1,136,700
New York University Hospitals Center, Series B, 5.25%, 7/01/24					355				378,778
New York State Dormitory Authority, Refunding RB:
Mount Sinai Hospital Series A, 4.25%, 7/01/23					250				266,895
North Shore-Long Island Jewish Obligated Group, Series E, 5.00%, 5/01/22					650				719,777
State of New York Dormitory Authority, Refunding RB, North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32					500				539,725
Yonkers New York Industrial Development Agency, RB, Sacred Heart Association Project, Series A, AMT (SONYMA), 4.80%, 10/01/26					750				800,602
									12,889,556
Housing — 2.9%
City of New York New York Housing Development Corp., RB, M/F Housing:
Series B1, 5.25%, 7/01/30					500				571,035
Series H-2-A, Remarketing, AMT, 5.00%, 11/01/30					780				798,049
State of New York Mortgage Agency, Refunding RB, S/F Housing, 143rd Series, AMT, 4.85%, 10/01/27					500				523,785
									1,892,869
State — 9.9%
New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 1/15/23					575				666,051
New York State Dormitory Authority, RB:
Haverstraw King’s Daughters Public Library, 5.00%, 7/01/26					1,015				1,136,901
Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 1/15/27					600				663,702

 

Municipal Bonds				Par (000)				Value
New York (concluded)
State (concluded)
New York State Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/22				$	1,000			$	1,153,590
New York State Urban Development Corp., RB:
Personal Income Tax, Series A-1, 5.00%, 3/15/32					400				453,220
Service Contract, Series B, 5.00%, 1/01/21					1,500				1,709,040
State of New York Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32					250				283,263
State of New York Urban Development Corp., RB, Personal Income Tax, Series A, 3.50%, 3/15/28					305				313,647
									6,379,414
Transportation — 26.0%
Metropolitan Transportation Authority, RB:
Series A, 5.00%, 11/15/27					1,000				1,156,240
Series A (NPFGC), 5.00%, 11/15/24					1,010				1,108,122
Series A-1, 5.25%, 11/15/33					500				566,310
Series B, 5.25%, 11/15/33					1,000				1,140,370
Series B (NPFGC), 5.25%, 11/15/19					860				1,022,050
Series H, 5.00%, 11/15/30					500				559,640
Sub-Series B-1, 5.00%, 11/15/24					460				544,934
Sub-Series B-4, 5.00%, 11/15/24					300				353,184
Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, 5.00%, 12/01/20					1,000				1,155,380
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/21					2,000				2,359,860
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.00%, 11/01/23					500				553,150
Port Authority of New York & New Jersey, Refunding RB, AMT:
178th Series, 5.00%, 12/01/32					1,000				1,111,770
Consolidated, 152nd, 5.00%, 11/01/24					1,000				1,102,740
State of New York Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/37					1,000				1,095,160
Triborough Bridge & Tunnel Authority, Refunding RB, Series A:
5.00%, 11/15/24					2,000				2,378,160
5.00%, 1/01/27					500				578,635
									16,785,705
Utilities — 12.1%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Series DD, 5.00%, 6/15/32					500				557,415
Series EE, 5.00%, 6/15/34					3,000				3,359,760
Long Island Power Authority, Refunding RB:
Electric System, Series A, 5.50%, 4/01/24					500				563,245
General, Series D (NPFGC), 5.00%, 9/01/25					2,000				2,161,960
New York State Environmental Facilities Corp., Refunding RB, NYC Municipal Water Finance Authority Project, 2nd Resolution, Series B, 5.00%, 6/15/31					1,000				1,145,720
									7,788,100
Total Municipal Bonds in New York									86,309,453
Puerto Rico — 2.4%
Housing — 2.4%
Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27					1,570				1,585,370
Total Municipal Bonds — 136.1%									87,894,823

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

17

Schedule of Investments (continued)	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (b)				Par (000)				Value
New York — 16.4%
County/City/Special District/ School District — 4.1%
City of New York New York, GO, Refunding, Go, Refunding, Series E, 5.00%, 8/01/27				$	599			$	690,698
City of New York New York, GO:
Series I, 5.00%, 3/01/32					991				1,120,161
Sub-Series G-1, 5.00%, 4/01/29					750				852,570
									2,663,429
State — 2.7%
New York State Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 3/15/32					1,499				1,698,359
Transportation — 4.4%
Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/25					749				884,331
Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26					750				849,698
Port Authority of New York & New Jersey, RB, 178th Series, AMT, 5.00%, 12/01/32					991				1,101,752
									2,835,781

 

Municipal Bonds Transferred to Tender Option Bond Trusts (b)				Par (000)				Value
New York (concluded)
Utilities — 5.2%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:
2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32				$	1,560			$	1,738,682
Series A, 4.75%, 6/15/30					1,500				1,637,940
									3,376,622
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 16.4%									10,574,191
Total Long-Term Investments (Cost — $92,694,894) — 152.5%									98,469,014
Short-Term Securities					Shares
BIF New York Municipal Money Fund, 0.00% (c)(d)					441,039				441,039
Total Short-Term Securities (Cost — $441,039) — 0.7%									441,039
Total Investments (Cost — $93,135,933) — 153.2%									98,910,053
Other Assets Less Liabilities — 1.5%									1,016,721
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (8.9%)									(5,760,298	)
VRDP Shares, at Liquidation Value — (45.8%)									(29,600,000	)
Net Assets Applicable to Common Shares — 100.0%								$	64,566,476

Notes to Schedule of Investments

(a)				Variable rate security. Rate shown is as of report date.
(b)				Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(c)				Investments in issuers considered to be an affiliate of the Fund during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

---

Affiliate				Shares Held at July 31, 2013		Net Activity		Shares Held at July 31, 2014		Income
BIF New York Municipal Money Fund				802,542		(361,503)		441,039		—

(d)				Represents the current yield as of report date.
•				Financial futures contracts outstanding as of July 31, 2014 were as follows:

---

Contracts Sold	Issue		Exchange		Expiration		Notional Value		Unrealized Appreciation
(39)	10-Year U.S. Treasury Note		Chicago Board of Trade		September 2014		$4,859,766		$15,180

•				For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•				Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

18

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (concluded)	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements
				The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments1					—			$	98,469,014				—			$	98,469,014
Short-Term Securities				$	441,039				—				—				441,039
Total				$	441,039			$	98,469,014				—			$	98,910,053

1

See above Schedule of Investments for values in each sector.

---

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments2
Assets:
Interest rate contracts				$	15,180				—				—			$	15,180

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Assets:
Cash				$	3,236				—				—			$	3,236
Cash pledged for financial futures contracts					96,000				—				—				96,000
Liabilities:
TOB trust certificates					—			$	(5,759,171	)			—				(5,759,171	)
VRDP Shares					—				(29,600,000	)			—				(29,600,000	)
Total				$	99,236			$	(35,359,171	)			—			$	(35,259,935	)

There were no transfers between levels during the year ended July 31, 2014.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

19

Schedule of Investments July 31, 2014	BlackRock MuniYield Arizona Fund, Inc. (MZA) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Arizona — 140.6%
Corporate — 16.7%
County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35				$	4,350			$	4,620,613
County of Pima Arizona IDA, RB, Tucson Electric Power Co. Project, Series A, 5.25%, 10/01/40					1,000				1,065,130
County of Pima Arizona IDA, Refunding, IDRB, Tucson Electric Power Co. Project, Remarketing, Series B, 5.75%, 9/01/29					500				506,665
County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29					1,000				999,970
Salt Verde Financial Corp., RB, Senior:
5.50%, 12/01/29					2,000				2,306,380
5.00%, 12/01/37					1,500				1,637,295
									11,136,053
County/City/Special District/School District — 39.6%
City of Phoenix Arizona Civic Improvement Corp., RB, Subordinate, Civic Plaza Expansion Project, Series A (NPFGC), 5.00%, 7/01/35					3,325				3,432,697
City of Tucson Arizona, COP (AGC), 5.00%, 7/01/29					1,000				1,072,790
County of Maricopa Arizona Community College District, GO, Series C, 3.00%, 7/01/22					1,000				1,041,610
County of Maricopa Arizona School District No. 28 Kyrene Elementary, GO, School Improvement Project of 2010, Series B (a):
1.00%, 7/01/29					480				539,266
1.00%, 7/01/30					400				449,968
County of Maricopa Arizona Unified School District No. 89 Dysart, GO, School Improvement Project of 2006, Series C, 6.00%, 7/01/28					1,000				1,154,250
County of Mohave Arizona Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 7/01/26					1,000				1,155,180
County of Pinal Arizona, COP:
5.00%, 12/01/26					1,250				1,269,475
5.00%, 12/01/29					1,250				1,258,187
County of Yuma Arizona Library District, GO (Syncora), 5.00%, 7/01/26					1,000				1,105,740
Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 7/01/27					2,000				2,289,200
Gladden Farms Community Facilities District, GO, 5.50%, 7/15/31					750				757,718
Greater Arizona Development Authority, RB, Santa Cruz County Jail, Series 2, 5.25%, 8/01/31					1,155				1,231,172
Marana Municipal Property Corp., RB, Series A, 5.00%, 7/01/28					2,500				2,781,675
Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT, 5.00%, 7/01/38					3,600				3,794,616
Scottsdale Municipal Property Corp., RB, Water & Sewer Development Project, Series A, 5.00%, 7/01/24					1,000				1,138,950
Vistancia Community Facilities District Arizona, GO:
6.75%, 7/15/22					1,155				1,158,269
5.75%, 7/15/24					750				765,217
									26,395,980
Education — 19.6%
Arizona Board of Regents, COP, Refunding, University of Arizona, Series C, 5.00%, 6/01/30					2,595				2,865,165
Arizona State University, RB, Series C:
6.00%, 7/01/25					970				1,137,606
6.00%, 7/01/26					745				871,561
6.00%, 7/01/27					425				497,199
6.00%, 7/01/28					400				462,848
City of Phoenix Arizona IDA, RB:
Candeo School, Inc. Project, 6.63%, 7/01/33					500				538,560

Municipal Bonds				Par (000)				Value
Arizona (continued)
Education (concluded)
City of Phoenix Arizona IDA, RB (concluded):
Great Hearts Academies—Veritas Project, 6.30%, 7/01/42				$	500			$	517,670
Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (b)					440				484,590
County of Maricopa Arizona IDA, RB, Arizona Charter School Project 1, Series A, 6.63%, 7/01/20					320				306,202
County of Pima Arizona IDA, RB, Arizona Charter Schools Project, Series C:
6.70%, 7/01/21					20				20,102
6.75%, 7/01/31					45				45,117
County of Pima Arizona IDA, Refunding RB, Arizona Charter Schools Project, Series O, 5.00%, 7/01/26					985				987,630
Florence Town Inc., IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43					500				503,745
Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/38					3,000				3,253,200
Sun Devil Energy Center LLC, Refunding RB, Arizona State University Project, 5.00%, 7/01/30					500				555,390
									13,046,585
Health — 19.7%
Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 3/01/41					500				526,305
Arizona Health Facilities Authority, Refunding RB:
Banner Health, Series D, 5.50%, 1/01/38					4,800				5,135,232
Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42					1,000				1,047,080
City of Tempe Arizona IDA, Refunding RB, Friendship Village of Tempe, Series A, 6.25%, 12/01/42					500				524,795
County of Maricopa Arizona IDA, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39					170				189,281
County of Maricopa Arizona IDA, Refunding RB, Series A:
Catholic Healthcare West, 5.50%, 7/01/26					1,850				1,857,215
Samaritan Health Services (NPFGC), 7.00%, 12/01/16 (c)					1,000				1,066,200
University Medical Center Corp., RB, 6.50%, 7/01/39					500				578,440
University Medical Center Corp., Refunding RB, 6.00%, 7/01/39					1,000				1,087,650
Yavapai County IDA, Refunding RB, Northern Arizona Healthcare System, 5.25%, 10/01/26					1,000				1,137,350
									13,149,548
Housing — 0.7%
City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F, AMT (Fannie Mae):
Series A-1, 5.75%, 5/01/40					40				43,071
Series A-2, 5.80%, 7/01/40					55				55,968
City of Phoenix & County of Pima Arizona IDA, RB, S/F, Series 1A, AMT (Fannie Mae), 5.65%, 7/01/39					158				157,886
City of Phoenix & County of Pima Arizona IDA, Refunding RB, S/F, Series 1, AMT (Fannie Mae), 5.25%, 8/01/38					24				24,524
City of Phoenix Arizona IDA, Refunding RB, S/F, Series 2, AMT (Fannie Mae), 5.50%, 12/01/38					64				66,874
County of Maricopa Arizona IDA, RB, S/F, Series 3-B, AMT (Ginnie Mae), 5.25%, 8/01/38					80				79,793
									428,116
State — 18.7%
Arizona Department of Transportation State Highway Fund, RB, Series B, 5.00%, 7/01/30					4,000				4,508,640
Arizona School Facilities Board, COP:
5.13%, 9/01/21					1,000				1,128,980
5.75%, 9/01/22					2,000				2,311,180

See Notes to Financial Statements.

20

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (continued)	BlackRock MuniYield Arizona Fund, Inc. (MZA) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Arizona (concluded)
State (concluded)
Arizona Sports & Tourism Authority, Refunding RB, Multipurpose Stadium Facility Project, Series A:
5.00%, 7/01/31				$	1,000			$	1,068,650
5.00%, 7/01/36					1,250				1,325,363
State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 7/01/29					1,930				2,097,466
									12,440,279
Transportation — 4.4%
City of Phoenix Arizona Civic Improvement Corp., RB, Senior Lien, Series A, AMT, 5.00%, 7/01/33					1,000				1,106,300
City of Phoenix Arizona Civic Improvement Corp., Refunding RB:
Junior Lien, Series A, 5.00%, 7/01/40					1,000				1,048,430
Senior Lien, AMT, 5.00%, 7/01/32					700				774,158
									2,928,888
Utilities — 21.2%
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Senior Lien, 5.50%, 7/01/22					2,000				2,331,740
County of Pinal Arizona, RB, Electric District No. 4, 6.00%, 12/01/38					2,000				2,172,700
County of Pinal Arizona, Refunding RB, Electric District No. 3, 5.25%, 7/01/36					2,500				2,739,275
County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26					500				494,235
Gilbert Water Resource Municipal Property Corp., RB, Subordinate Lien (NPFGC), 5.00%, 10/01/29					900				984,672
Greater Arizona Development Authority, RB, Series B (NPFGC):
5.00%, 8/01/30					1,600				1,653,184
5.00%, 8/01/35					1,000				1,034,160
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/24					1,000				1,125,750
Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 1/01/35					1,500				1,573,950
									14,109,666
Total Municipal Bonds in Arizona									93,635,115

Municipal Bonds				Par (000)				Value
Guam — 3.0%
State — 3.0%
Territory of Guam, RB, Business Privilege Tax:
Series A, 5.25%, 1/01/36				$	65			$	69,351
Series A, 5.13%, 1/01/42					800				843,064
Series B-1, 5.00%, 1/01/37					80				83,884
Series B-1, 5.00%, 1/01/42					1,000				1,045,950
Total Municipal Bonds in Guam									2,042,249
Total Municipal Bonds — 143.6%									95,677,364
Municipal Bonds Transferred to Tender Option Bond Trusts (d)
Arizona — 11.1%
Utilities — 11.1%
City of Mesa Arizona, RB, Utility System, 5.00%, 7/01/35					3,000				3,287,760
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34					3,000				3,377,490
Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38					660				725,294
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 11.1%									7,390,544
Total Long-Term Investments (Cost — $96,091,940) — 154.7%									103,067,908
Short-Term Securities					Shares
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)					3,656,883				3,656,883
Total Short-Term Securities (Cost — $3,656,883) — 5.5%									3,656,883
Total Investments (Cost — $99,748,823) — 160.2%									106,724,791
Other Assets Less Liabilities — 0.8%									518,034
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (5.0%)									(3,330,195	)
VRDP Shares, at Liquidation Value — (56.0%)									(37,300,000	)
Net Assets Applicable to Common Shares — 100.0%								$	66,612,630

Notes to Schedule of Investments

(a)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Security is collateralized by municipal or U.S. Treasury obligations.
(d)				Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)				Investments in issuers considered to be an affiliate of the Fund during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

---

Affiliate				Shares Held at July 31, 2013				Net Activity				Shares Held at July 31, 2014				Income
FFI Institutional Tax-Exempt Fund					210,260				3,446,623				3,656,883				$200

(f)				Represents the current yield as of report date.
•				For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

21

Schedule of Investments (concluded)	BlackRock MuniYield Arizona Fund, Inc. (MZA)

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

	•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
	•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
	The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
	Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
	The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2014:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments1					—			$	103,067,908				—			$	103,067,908
Short-Term Securities				$	3,656,883				—				—				3,656,883
Total				$	3,656,883			$	103,067,908				—			$	106,724,791

1

See above Schedule of Investments for values in each sector.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Liabilities:
TOB trust certificates					—			$	(3,330,000	)			—			$	(3,330,000	)
VRDP Shares					—				(37,300,000	)			—				(37,300,000	)
Total					—			$	(40,630,000	)			—			$	(40,630,000	)

There were no transfers between levels during the year ended July 31, 2014.

See Notes to Financial Statements.

22

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments July 31, 2014	BlackRock MuniYield California Fund, Inc. (MYC) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
California — 101.2%
Corporate — 1.6%
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
Series A, 5.88%, 2/15/34				$	975			$	1,123,629
Series D, 5.88%, 1/01/34					4,000				4,609,760
									5,733,389
County/City/Special District/School District — 36.3%
Campbell Union High School District, GO, Election of 2006, Series C, 5.75%, 8/01/40					4,000				4,686,720
City of Los Angeles California, COP, Senior, Sonnenblick Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31					2,000				2,008,720
City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E, 6.00%, 9/01/34					2,615				3,084,863
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36					1,520				1,798,950
6.50%, 5/01/42					1,860				2,197,665
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36					2,440				2,930,562
County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36					16,000				17,701,600
El Monte Union High School District, GO, Election of 2002, Series C, 5.25%, 6/01/32					9,620				10,698,691
Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/40					5,500				6,242,170
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40					2,000				2,348,900
Los Angeles Community College District, GO:
Series E (AGM), 5.00%, 8/01/31					10,000				10,658,400
Election of 2008, Series C, 5.25%, 8/01/39					7,335				8,420,727
Los Angeles Municipal Improvement Corp., RB, Real Property, Series E, 5.75%, 9/01/34					1,215				1,411,186
Los Rios Community College District, GO, Election of 2002, Series D, 5.38%, 8/01/34					4,625				5,295,486
Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series 2013 A, 5.00%, 8/01/34					2,000				2,252,920
Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33					4,000				4,634,120
Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41					7,135				7,946,464
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39					6,035				6,653,286
Riverside Community Properties Development, Inc., RB, Riverside County Law Building Project, 6.00%, 10/15/38					5,000				5,826,300
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36					4,100				4,677,444
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34					5,435				5,604,463
Santa Ana Unified School District, GO, Election of 2008, Series A, 5.13%, 8/01/33					6,205				6,980,997
West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 8/01/39					2,500				2,827,500
									126,888,134
Education — 7.6%
California Educational Facilities Authority, Refunding RB:
Pitzer College, 6.00%, 4/01/40					2,500				2,930,000
San Francisco University, 6.13%, 10/01/36					1,745				2,075,782
California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42					2,750				3,154,965
California School Finance Authority, RB:
Alliance College-Ready Public Schools—2023 Union LLC Project, Series A, 6.00%, 7/01/33					1,500				1,644,075

Municipal Bonds				Par (000)				Value
California (continued)
Education (concluded)
California School Finance Authority, RB (concluded):
Alliance College-Ready Public Schools—2023 Union LLC Project, Series A, 6.30%, 7/01/43				$	3,000			$	3,333,750
Value Schools, 6.65%, 7/01/33					595				633,622
Value Schools, 6.90%, 7/01/43					1,330				1,425,866
University of California, RB, Series AM, 5.25%, 5/15/44					9,950				11,444,490
									26,642,550
Health — 18.3%
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare :
6.38%, 8/01/14 (a)					2,000				2,000,000
Series A, 6.00%, 8/01/30					2,270				2,742,569
California Health Facilities Financing Authority, RB:
Children’s Hospital, Series A, 5.25%, 11/01/41					11,090				11,983,299
St. Joseph Health System, Series A, 5.75%, 7/01/39					990				1,145,925
Sutter Health, Series A (BHAC), 5.00%, 11/15/42					10,000				10,482,200
Sutter Health, Series B, 6.00%, 8/15/42					7,530				9,012,657
California Health Facilities Financing Authority, Refunding RB, Series A:
Catholic Healthcare West, 6.00%, 7/01/39					10,000				11,096,100
6.50%, 11/01/38					1,090				1,270,515
California Statewide Communities Development Authority, RB:
Kaiser Permanente, Series B, 5.25%, 3/01/45					2,590				2,669,228
Sutter Health, Series A, 6.00%, 8/15/42					7,995				9,569,216
Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38					1,625				1,901,721
									63,873,430
Housing — 1.0%
County of Santa Clara California Housing Authority, RB, John Burns Gardens Apartments Project, Series A, AMT, 6.00%, 8/01/41					3,500				3,501,575
State — 13.4%
California State Public Works Board, RB:
Department of Developmental Services, Poterville, Series C, 6.25%, 4/01/34					1,475				1,739,246
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34					10,000				11,901,900
Series A, 5.00%, 9/01/39					5,000				5,511,750
Trustees of the California State University, Series D, 6.00%, 4/01/27					215				253,096
Various Capital Projects, Series I, 5.50%, 11/01/33					1,510				1,784,896
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34					4,400				5,305,872
State of California, GO, Various Purposes:
6.00%, 4/01/38					13,905				16,364,099
6.00%, 11/01/39					3,355				4,024,255
									46,885,114
Transportation — 9.5%
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39					5,215				6,181,704
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33					1,440				1,594,109
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:
Senior, 5.00%, 5/15/40					3,750				4,106,925
5.25%, 5/15/39					3,605				4,094,271
City of San Jose California, RB, Series A-1, AMT (AGM):
5.50%, 3/01/30					1,000				1,109,830
5.75%, 3/01/34					1,000				1,112,080

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

23

Schedule of Investments (continued)	BlackRock MuniYield California Fund, Inc. (MYC) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
California (concluded)
Transportation (concluded)
City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34				$	1,400			$	1,619,380
County of Orange California, ARB, Series B, 5.75%, 7/01/34					3,000				3,368,910
County of Sacramento California, ARB:
PFC/Grant, Sub-Series D, 6.00%, 7/01/35					3,000				3,446,820
Senior Series B, 5.75%, 7/01/39					900				1,026,711
San Francisco Port Commission California, RB, Series A, 5.13%, 3/01/40					5,075				5,407,615
									33,068,355
Utilities — 13.5%
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39					4,000				4,442,760
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36					2,645				3,100,019
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41					2,420				2,928,466
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/35					8,430				9,427,101
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38					3,015				3,382,981
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37					7,595				8,309,766
Oceanside Public Financing Authority, Refunding RB, Series A:
5.25%, 5/01/30					1,245				1,447,661
5.25%, 5/01/33					2,810				3,227,959
San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.38%, 5/15/34					3,920				4,499,141
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34					3,070				3,503,146
San Francisco City & County California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39					2,480				2,776,707
									47,045,707
Total Municipal Bonds — 101.2%									353,638,254
Municipal Bonds Transferred to Tender Option Bond Trusts (b)
California — 50.0%
County/City/Special District/School District — 21.5%
City of Los Angeles California, Refunding RB, Series A, 5.00%, 6/01/39					9,870				10,885,525
Los Angeles Community College District California, GO:
Election of 2001, Series E-1, 5.00%, 8/01/33					14,850				16,678,629
Election of 2008, Series C, 5.25%, 8/01/39 (c)					9,680				11,113,027
Los Angeles Community College District California, GO, Election of 2008, Refunding, Series A, 6.00%, 8/01/33					3,828				4,571,645

Municipal Bonds Transferred to Tender Option Bond Trusts (b)				Par (000)				Value
California (concluded)
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33				$	7,732			$	8,906,729
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30					6,000				6,189,300
San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 8/01/38					15,520				16,964,291
									75,309,146
Education — 11.6%
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (c)					13,845				15,618,545
University of California, RB:
Series L, 5.00%, 5/15/36					8,500				9,139,710
Series L, 5.00%, 5/15/40					11,597				12,489,331
Series O, 5.75%, 5/15/34					2,805				3,283,916
									40,531,502
Utilities — 16.9%
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33					4,748				5,309,764
Los Angeles Department of Water & Power, RB, Power System:
Sub-Series A-1 (AMBAC), 5.00%, 7/01/37					15,098				16,505,153
Sub-Series A-2 (AGM), 5.00%, 7/01/35					7,250				7,768,955
Metropolitan Water District of Southern California, RB:
Series A, 5.00%, 7/01/37					20,000				21,882,200
Series C, 5.00%, 7/01/35					7,145				7,597,486
									59,063,558
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 50.0%									174,904,206
Total Long-Term Investments (Cost — $481,974,871) — 151.2%									528,542,460
Short-Term Securities					Shares
Money Market Funds — 0.4%
BIF California Municipal Money Fund, 0.00% (d)(e)					1,241,527				1,241,527
Municipal Bonds — 0.5%					Par (000)
California School Cash Reserve Program Authority, Series G , 2.00%, 02/27/15				$	1,665				1,679,688
Total Short-Term Securities (Cost — $2,921,215) — 0.9%									2,921,215
Total Investments (Cost — $484,896,086) — 152.1%									531,463,675
Other Assets Less Liabilities — 2.0%									7,219,705
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (23.8%)									(83,299,866	)
VRDP Shares, at Liquidation Value — (30.3%)									(105,900,000	)
Net Assets Applicable to Common Shares — 100.0%								$	349,483,514

Notes to Schedule of Investments

(a)				U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)				Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(c)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to August 1, 2018 is $14,704,685.

See Notes to Financial Statements.

24

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (concluded)	BlackRock MuniYield California Fund, Inc. (MYC)

(d)

Investments in issuers considered to be an affiliate of the Fund during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

---

Affiliate				Shares Held at July 31, 2013				Net Activity				Shares Held at July 31, 2014				Income
BIF California Municipal Money Fund					4,979,601				(3,738,074)				1,241,527				$169

(e)				Represents the current yield as of report date.
•				Financial futures contracts outstanding as of July 31, 2014 were as follows:

---

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized Appreciation

(221)

10-Year U.S. Treasury Note

Chicago Board of Trade

September 2014

$27,538,672

$53,214

•				For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•				Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

	•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
	•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
	Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.
	The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments1					—			$	528,542,460				—			$	528,542,460
Short-Term Securities				$	1,241,527				1,679,688								2,921,215
Total				$	1,241,527			$	530,222,148				—			$	531,463,675

1

See above Schedule of Investments for values in each sector.

---

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments2
Assets:
Interest rate contracts				$	53,214				—				—			$	53,214

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Assets:
Cash pledged for financial futures contracts				$	302,000				—				—			$	302,000
Liabilities:
TOB trust certificates					—			$	(83,283,292	)			—				(83,283,292	)
VRDP Shares					—				(105,900,000	)			—				(105,900,000	)
Total				$	302,000			$	(189,183,292	)			—			$	(188,881,292	)

There were no transfers between levels during the year ended July 31, 2014.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

25

Schedule of Investments July 31, 2014	BlackRock MuniYield Investment Fund (MYF) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Alabama — 0.8%
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35				$	545			$	595,631
Courtland IDB, Refunding RB, International Paper Co. Projects, Series A, AMT, 5.20%, 6/01/25					1,000				1,011,120
									1,606,751
Alaska — 0.8%
Alaska Municipal Bond Bank Authority, RB, Series 1, 5.75%, 9/01/33					1,000				1,140,550
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46					690				512,021
									1,652,571
California — 12.9%
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38					2,740				3,090,994
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42					1,645				1,968,900
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39					710				787,823
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT:
5.50%, 5/01/28					1,065				1,230,363
5.25%, 5/01/33					830				918,827
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.50%, 3/01/30					1,500				1,664,745
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33					1,620				1,911,940
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38					3,600				4,039,380
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36					1,310				1,494,500
State of California, GO, Various Purposes, 6.00%, 3/01/33					2,535				3,041,417
State of California Public Works Board, RB:
Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33					835				954,823
Various Capital Projects, Series I, 5.50%, 11/01/31					1,000				1,181,180
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40					625				727,981
University of California, Refunding RB, Medical Center Regents, Series J, 5.25%, 5/15/38					3,730				4,226,015
									27,238,888
Colorado — 0.9%
City & County of Denver Colorado Airport System, ARB, Series A, AMT:
5.50%, 11/15/28					1,000				1,145,430
5.50%, 11/15/30					330				372,715
5.50%, 11/15/31					400				448,124
									1,966,269
Delaware — 0.3%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40					500				550,465
Florida — 8.3%
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33					675				757,903
County of Escambia Florida, Refunding RB, International Paper Co. Project, Series B, AMT, 5.00%, 8/01/26					600				600,396
County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29					1,995				2,237,293

Municipal Bonds				Par (000)				Value
Florida (concluded)
County of Hillsborough Florida IDA, RB, National Gypsum Co., AMT:
Series A, 7.13%, 4/01/30				$	2,500			$	2,505,175
Series B, 7.13%, 4/01/30					2,290				2,292,313
County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32					2,000				2,178,100
County of Manatee Florida Housing Finance Authority, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 9/01/40					310				316,150
County of Miami-Dade Florida, RB, Seaport Department:
Series A, 5.38%, 10/01/33					1,170				1,296,641
Series B, AMT, 6.25%, 10/01/38					525				613,552
Series B, AMT, 6.00%, 10/01/42					700				799,582
County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31					2,440				2,624,269
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32					1,200				1,345,728
									17,567,102
Georgia — 0.5%
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23					880				1,037,951
Hawaii — 0.5%
State of Hawaii, Department of Transportation, COP, AMT:
5.25%, 8/01/25					485				557,619
5.25%, 8/01/26					525				599,036
									1,156,655
Illinois — 16.6%
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41					6,065				7,256,166
City of Chicago Illinois, GO, Refunding, Series A:
5.25%, 1/01/29					1,000				1,058,590
5.25%, 1/01/33					980				1,020,592
City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien, Series A (AMBAC), 5.00%, 11/01/36					1,015				1,046,719
City of Chicago Illinois Midway Airport, Refunding ARB, 2nd Lien, Series A, AMT, 5.00%, 1/01/41					655				682,444
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:
5.25%, 12/01/36					1,000				1,087,990
5.25%, 12/01/40					1,000				1,083,340
5.00%, 12/01/44					1,505				1,608,920
County of Cook Illinois Community College District No. 508, GO, City College of Chicago:
5.50%, 12/01/38					1,000				1,117,480
5.25%, 12/01/43					1,500				1,620,495
Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41					4,000				4,536,320
Illinois Finance Authority, Refunding RB:
Central DuPage Health, Series B, 5.38%, 11/01/39					1,200				1,286,160
Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39					4,160				4,802,637
Railsplitter Tobacco Settlement Authority, RB:
5.50%, 6/01/23					1,370				1,593,721
6.00%, 6/01/28					390				453,929
State of Illinois, GO:
5.25%, 2/01/31					1,005				1,057,983
5.25%, 2/01/32					2,200				2,303,884
5.50%, 7/01/33					1,000				1,068,200
5.50%, 7/01/38					415				439,560
									35,125,130
Indiana — 3.1%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 1/01/34					1,350				1,501,510
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39					4,525				5,112,481
									6,613,991

See Notes to Financial Statements.

26

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (continued)	BlackRock MuniYield Investment Fund (MYF) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Kansas — 1.7%
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29				$	3,275			$	3,689,582
Kentucky — 0.7%
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34					1,200				1,418,532
Louisiana — 2.2%
Lake Charles Harbor & Terminal District, RB, Series B, AMT, 5.50%, 1/01/29					1,500				1,697,685
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35					1,420				1,630,131
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29					1,195				1,307,187
									4,635,003
Maine — 1.4%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32					2,500				2,886,800
Massachusetts — 4.2%
Massachusetts Educational Financing Authority, RB, Education Loan, Issue I, AMT, 5.00%, 1/01/26					1,510				1,648,316
Massachusetts HFA, Refunding RB, AMT:
Series B, 5.50%, 6/01/41					3,000				3,124,110
Series C, 5.35%, 12/01/42					2,000				2,055,260
Series F, 5.70%, 6/01/40					1,970				2,047,066
									8,874,752
Michigan — 2.9%
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41					1,805				2,095,930
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38					1,250				1,434,738
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)					1,970				2,540,886
									6,071,554
Mississippi — 1.3%
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40					1,785				2,320,643
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38					440				498,643
									2,819,286
Nevada — 3.4%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34					2,850				3,309,904
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42					3,375				3,911,085
									7,220,989
New Jersey — 5.1%
New Jersey EDA, RB:
School Facilities Construction, Series RR, 5.00%, 6/15/33					1,500				1,621,290
The Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 1/01/31					900				974,790
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39					2,250				2,465,505
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
Series A, 5.88%, 12/15/38					2,670				3,102,914
Series AA, 5.50%, 6/15/39					2,475				2,736,236
									10,900,735

Municipal Bonds				Par (000)				Value
New York — 0.9%
New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49				$	1,650			$	1,816,568
Ohio — 2.6%
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38					3,115				3,350,868
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:
5.25%, 2/15/30					1,000				1,132,140
5.25%, 2/15/31					1,000				1,125,830
									5,608,838
Pennsylvania — 4.6%
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39					1,075				1,232,305
Pennsylvania Turnpike Commission, RB, Sub-Series A:
5.63%, 12/01/31					2,455				2,734,183
6.00%, 12/01/41					3,000				3,269,250
State of Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44					755				827,057
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37					1,500				1,660,650
									9,723,445
South Carolina — 2.9%
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38					2,505				2,881,501
County of Charleston South Carolina Airport District, ARB, Series A, AMT:
6.00%, 7/01/38					1,955				2,209,737
5.50%, 7/01/41					1,000				1,095,820
									6,187,058
Texas — 9.1%
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:
5.75%, 1/01/31					1,000				1,115,200
6.00%, 1/01/41					2,600				2,897,076
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37					1,555				1,767,553
Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/35					1,800				2,058,264
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45					3,795				4,539,883
Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:
Series A, 5.00%, 11/01/38					1,365				1,419,068
Series H, 5.00%, 11/01/37					1,535				1,607,068
North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 1/01/38					1,000				1,139,120
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38					710				805,154
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39					1,700				1,995,647
									19,344,033
Virginia — 2.0%
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43					560				616,745
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a)					800				986,496
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings LLC Project, AMT, 6.00%, 1/01/37					2,440				2,720,941
									4,324,182

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

27

Schedule of Investments (continued)	BlackRock MuniYield Investment Fund (MYF) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Wisconsin — 1.7%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39				$	3,470			$	3,699,922
Total Municipal Bonds — 91.4%									193,737,052
Municipal Bonds Transferred to Tender Option Bond Trusts (b)
California — 20.7%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44					2,680				3,228,617
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (c)					4,200				4,738,020
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40					6,000				6,490,020
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (c)					5,250				6,027,210
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33					7,697				9,191,036
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34					790				886,799
San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39					8,412				9,771,865
University of California, RB, Series O, 5.75%, 5/15/34					3,000				3,512,210
									43,845,777
Colorado — 1.2%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (c)					2,149				2,448,065
District of Columbia — 3.4%
District of Columbia, RB, Series A, 5.50%, 12/01/30 (c)					2,805				3,296,894
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39					3,507				3,954,235
									7,251,129
Florida — 2.3%
County of Hillsborough Florida Aviation Authority, ARB, Tampa International Airport, Series A, AMT (AGC), 5.50%, 10/01/38					3,869				4,307,004
County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40					540				558,490
									4,865,494
Illinois — 3.8%
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18 (a)					5,300				6,094,735
State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/33					1,750				1,939,956
									8,034,691
Nevada — 9.1%
County of Clark Nevada Water Reclamation District, GO:
Limited Tax, 6.00%, 7/01/38					5,000				5,804,100
Series B, 5.50%, 7/01/29					5,668				6,642,430
Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28					6,070				6,846,778
									19,293,308
New Hampshire — 1.2%
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (c)					2,159				2,452,925
New Jersey — 3.7%
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29					2,251				2,400,730

Municipal Bonds Transferred to Tender Option Bond Trusts (b)				Par (000)				Value
New Jersey (concluded)
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
Series A (AMBAC), 5.00%, 12/15/32				$	4,000			$	4,402,440
Series B, 5.25%, 6/15/36 (c)					1,000				1,087,791
									7,890,961
New York — 14.3%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Series BB, 5.25%, 6/15/44					4,408				4,896,423
Series FF, 5.00%, 6/15/45					3,859				4,201,251
Series FF-2, 5.50%, 6/15/40					2,505				2,865,252
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39					2,499				2,798,243
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (c)					1,290				1,467,423
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43					4,365				4,809,706
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (c)					2,560				2,869,862
New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38					5,700				6,453,483
									30,361,643
South Carolina — 1.7%
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (c)					3,240				3,652,647
Texas — 6.9%
City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (c)					3,989				4,524,099
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39					5,400				6,188,886
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41					3,480				3,959,961
									14,672,946
Utah — 1.0%
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41					1,994				2,120,377
Virginia — 0.9%
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35					1,749				1,942,414
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 70.2%									148,832,377
Total Long-Term Investments (Cost — $309,388,933) — 161.6%									342,569,429
Short-Term Securities — 0.7%					Shares
FFI Institutional Tax-Exempt Fund, 0.03% (d)(e)					1,361,852				1,361,852
Total Short-Term Securities (Cost — $1,361,852) — 0.7%									1,361,852
Total Investments (Cost — $310,750,785) — 162.3%									343,931,281
Other Assets Less Liabilities — 1.5%									3,317,003
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (35.8%)									(75,882,449	)
VRDP Shares, at Liquidation Value — (28.0%)									(59,400,000	)
Net Assets Applicable to Common Shares — 100.0%								$	211,965,835

See Notes to Financial Statements.

28

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (concluded)	BlackRock MuniYield Investment Fund (MYF)

Notes to Schedule of Investments

(a)				U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)				Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(c)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019 is $18,095,690.
(d)				Investments in issuers considered to be an affiliate of the Fund during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

---

Affiliate				Shares Held at July 31, 2013				Net Activity				Shares Held at July 31, 2014				Income
FFI Institutional Tax-Exempt Fund					7,703,960				(6,342,108)				1,361,852				$695

(e)				Represents the current yield as of report date.
•				Financial futures contracts outstanding as of July 31, 2014 were as follows:

---

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized Appreciation

(134)

10-Year U.S. Treasury Note

Chicago Board of Trade

September 2014

$16,697,656

$57,390

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

	•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
	•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
	Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.
	The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments1					—			$	342,569,429				—			$	342,569,429
Short-Term Securities				$	1,361,852				—				—				1,361,852
Total				$	1,361,852			$	342,569,429				—			$	343,931,281

1

See above Schedule of Investments for values in each state or political subdivision.

---

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments2
Assets:
Interest rate contracts				$	57,390				—				—			$	57,390

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Assets:
Cash pledged for financial futures contracts				$	183,000				—				—			$	183,000
Liabilities:
TOB trust certificates					—			$	(75,865,362	)			—				(75,865,362	)
VRDP Shares					—				(59,400,000	)			—				(59,400,000	)
Total				$	183,000			$	(135,265,362	)			—			$	(135,082,362	)

There were no transfers between levels during the year ended July 31, 2014.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

29

Schedule of Investments July 31, 2014	BlackRock MuniYield New Jersey Fund, Inc. (MYJ) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New Jersey — 129.8%
Corporate — 11.5%
County of Salem New Jersey Pollution Control Financing Authority, Refunding RB, AMT, Series A:
Atlantic City Electric, 5.00%, 12/01/23				$	2,430			$	2,688,625
Chambers Project, 4.88%, 6/01/29					4,550				4,837,196
Middlesex County Improvement Authority, RB, Senior Heldrich Center Hotel, Series A, 5.00%, 1/01/20					655				491,250
New Jersey EDA, RB:
Continental Airlines, Inc. Project, Series A, AMT, 5.63%, 11/15/30					1,730				1,831,880
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30					485				515,211
New Jersey EDA, Refunding RB:
New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39					7,900				8,656,662
New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34					2,430				2,670,764
United Water of New Jersey, Inc., Series B (AMBAC), 4.50%, 11/01/25					4,500				4,915,755
									26,607,343
County/City/Special District/School District — 13.8%
City of Margate New Jersey, GO, Refunding, Improvement:
5.00%, 1/15/26					1,200				1,330,680
5.00%, 1/15/27					845				930,379
City of Perth Amboy New Jersey, GO, Refunding, CAB (AGM):
5.00%, 7/01/33					1,575				1,643,024
5.00%, 7/01/34					1,925				2,001,095
County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
5.50%, 10/01/28					2,700				3,428,460
5.50%, 10/01/29					5,085				6,467,307
County of Gloucester New Jersey Improvement Authority, RB, County Guaranteed Loan—County Capital Program, 5.00%, 4/01/38					1,000				1,078,390
County of Hudson New Jersey, COP, Refunding (NPFGC), 6.25%, 12/01/16					1,500				1,666,875
County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44					4,800				5,142,864
County of Union New Jersey Improvement Authority, LRB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42					1,650				1,829,636
County of Union New Jersey Utilities Authority, Refunding RB, Series A:
Resources Recovery Facility, Covanta Union, Inc., AMT, 5.25%, 12/01/31					670				723,620
Solid Waste System, County Deficiency Agreement, 5.00%, 6/15/41					4,115				4,478,478
Monmouth County Improvement Authority, Refunding RB, Government Loan (AMBAC):
5.00%, 12/01/15					5				5,017
5.00%, 12/01/16					5				5,016
New Jersey EDA, RB, The Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 1/01/31					1,000				1,083,100
									31,813,941
Education — 25.6%
New Jersey EDA, RB:
MSU Student Housing Project Provide, 5.75%, 6/01/31					1,000				1,090,730
MSU Student Housing Project Provide, 5.88%, 6/01/42					1,500				1,636,800
The Team Academy Charter School Project, 6.00%, 10/01/33					2,835				3,144,582

Municipal Bonds				Par (000)				Value
New Jersey (continued)
Education (concluded)
New Jersey Educational Facilities Authority, RB:
Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/32				$	3,925			$	4,326,724
Montclair State University, Series J, 5.25%, 7/01/38					1,140				1,264,135
New Jersey Educational Facilities Authority, Refunding RB:
College of New Jersey, Series D (AGM), 5.00%, 7/01/35					6,115				6,737,140
Georgian Court University, Series D, 5.25%, 7/01/37					1,000				1,025,470
Kean University, Series A, 5.50%, 9/01/36					4,500				5,105,070
Montclair State University, Series A, 5.00%, 7/01/44					6,790				7,528,820
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31					1,250				1,370,187
Ramapo College, Series B, 5.00%, 7/01/42					340				366,452
Rider University, Series A, 5.00%, 7/01/32					1,000				1,054,920
Rowan University, Series B (AGC), 5.00%, 7/01/24					1,800				2,014,992
Seton Hall University, Series D, 5.00%, 7/01/38					395				429,464
University of Medicine & Dentistry, Series B, 7.13%, 6/01/19 (a)					1,300				1,657,448
University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (a)					1,625				2,100,312
New Jersey Higher Education Student Assistance Authority, Refunding RB:
Series 1, AMT, 5.75%, 12/01/29					4,045				4,512,602
Series 1A, 5.00%, 12/01/25					865				915,265
Series 1A, 5.00%, 12/01/26					545				575,896
Series 1A, 5.25%, 12/01/32					900				970,524
New Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42					4,320				4,653,072
Rutgers—The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43					5,870				6,514,408
									58,995,013
Health — 12.3%
New Jersey EDA, Refunding RB, 1st Mortgage, Winchester, Series A:
5.75%, 11/01/24					2,500				2,507,400
5.80%, 11/01/31					1,000				1,002,380
New Jersey Health Care Facilities Financing Authority, RB:
Children’s Specialized Hospital, Series A, 5.50%, 7/01/36					1,540				1,572,402
Hunterdon Medical Center, Series A, 5.13%, 7/01/35					1,950				1,990,385
Meridian Health System Obligated Group, Series I (AGC), 5.00%, 7/01/38					945				991,494
Robert Wood Johnson University Hospital, Series A, 5.50%, 7/01/43					1,420				1,576,683
Virtua Health, Series A (AGC), 5.50%, 7/01/38					2,500				2,694,700
New Jersey Health Care Facilities Financing Authority, Refunding RB:
AHS Hospital Corp., 6.00%, 7/01/41					2,435				2,818,975
Kennedy Health System, 5.00%, 7/01/31					750				814,215
Meridian Health System Obligated Group, 5.00%, 7/01/25					1,000				1,120,540
Meridian Health System Obligated Group, 5.00%, 7/01/26					830				920,877
Robert Wood Johnson University Hospital, 5.00%, 7/01/31					1,000				1,075,440
South Jersey Hospital, 5.00%, 7/01/36					385				391,310
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29					4,150				4,268,648
St. Barnabas Health Care System, Series A, 5.63%, 7/01/32					1,090				1,193,310

See Notes to Financial Statements.

30

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (continued)	BlackRock MuniYield New Jersey Fund, Inc. (MYJ) (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New Jersey (continued)
Health (concluded)
New Jersey Health Care Facilities Financing Authority, Refunding RB (concluded):
St. Barnabas Health Care System, Series A, 5.63%, 7/01/37				$	3,030			$	3,290,519
									28,229,278
Housing — 3.7%
New Jersey Housing & Mortgage Finance Agency, RB:
M/F Housing, Series A, 4.75%, 11/01/29					2,305				2,413,796
S/F Housing, Series AA, 6.50%, 10/01/38					560				576,755
S/F Housing, Series CC, 5.00%, 10/01/34					1,945				2,041,297
S/F Housing, Series U, AMT, 4.95%, 10/01/32					440				448,664
S/F Housing, Series U, AMT, 5.00%, 10/01/37					580				588,914
S/F Housing, Series X, AMT, 5.05%, 4/01/18					295				319,214
Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%, 12/01/38					1,750				2,043,405
									8,432,045
State — 24.3%
Garden State Preservation Trust, RB (AGM):
CAB, Series B, 0.00%, 11/01/23 (b)					1,460				1,139,734
CAB, Series B, 0.00%, 11/01/28 (b)					4,540				2,875,818
Election of 2005, Series A, 5.80%, 11/01/15 (a)					2,500				2,673,250
New Jersey EDA, RB:
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25					2,000				2,382,380
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33					9,090				9,186,627
School Facilities Construction, Series CC-2, 5.00%, 12/15/31					1,700				1,844,568
School Facilities Construction, Series CC-2, 5.00%, 12/15/32					1,300				1,406,236
School Facilities Construction, Series L (AGM), 5.00%, 3/01/15 (a)					2,800				2,879,156
School Facilities Construction, Series P, 5.00%, 9/01/15 (c)					3,000				3,156,540
School Facilities Construction, Series P, 5.25%, 9/01/15 (a)					2,710				2,858,101
School Facilities Construction (AGC), 5.50%, 12/15/18 (a)					2,345				2,802,017
School Facilities Construction, Series RR, 5.00%, 6/15/33					4,500				4,863,870
School Facilities Construction, Series Y, 5.00%, 9/01/33					880				964,445
School Facilities Construction (AGC), 5.50%, 12/15/34					1,320				1,492,696
New Jersey EDA, Refunding RB:
Lions Gate Project, 5.00%, 1/01/34					500				494,470
Lions Gate Project, 5.25%, 1/01/44					315				315,101
Cigarette Tax, 5.00%, 6/15/26					440				484,189
Cigarette Tax, 5.00%, 6/15/28					720				783,900
Cigarette Tax, 5.00%, 6/15/29					1,760				1,903,704
School Facilities Construction, Series AA, 5.50%, 12/15/29					3,000				3,306,030
School Facilities Construction, Series AA, 5.25%, 12/15/33					1,000				1,082,850
School Facilities Construction, Series GG, 5.25%, 9/01/27					3,000				3,337,290
New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38					2,300				2,420,934
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28					1,100				1,205,105
									55,859,011

Municipal Bonds				Par (000)				Value
New Jersey (concluded)
Transportation — 37.3%
Delaware River Port Authority of Pennsylvania & New Jersey, RB:
5.00%, 1/01/40				$	2,620			$	2,856,010
Series D, 5.00%, 1/01/40					1,535				1,630,538
New Jersey EDA, RB, Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43					8,420				8,932,357
New Jersey State Turnpike Authority, RB:
Growth & Income Securities, Series B (AMBAC), 0.00%, 1/01/35 (d)					4,870				5,009,185
Series A, 5.00%, 1/01/38					7,000				7,599,340
Series E, 5.25%, 1/01/40					2,525				2,797,675
New Jersey State Turnpike Authority, Refunding RB, Series A, 5.00%, 1/01/35					1,000				1,090,390
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
CAB, Series C (AMBAC), 0.00%, 12/15/35 (b)					4,140				1,399,403
6.00%, 12/15/38					1,950				2,271,886
Series A, 6.00%, 6/15/35					6,030				7,218,151
Series A, 5.88%, 12/15/38					3,650				4,241,811
Series A, 5.50%, 6/15/41					5,500				6,092,130
Series A (AGC), 5.63%, 12/15/28					1,250				1,461,900
Series A (AGC), 5.50%, 12/15/38					1,000				1,144,710
Series AA, 5.25%, 6/15/33					5,935				6,587,197
Series AA, 5.50%, 6/15/39					5,520				6,102,636
Port Authority of New York & New Jersey, ARB:
Consolidated, 93rd Series, 6.13%, 6/01/94					5,000				5,834,350
JFK International Air Terminal, Series 8, 6.00%, 12/01/42					2,700				3,097,656
Port Authority of New York & New Jersey, Refunding ARB, Consolidated:
152nd Series, AMT, 5.25%, 11/01/35					240				262,022
169 th Series, AMT, 5.25%, 11/01/35					250				269,430
166th Series, 5.25%, 7/15/36					4,000				4,492,120
172nd Series, AMT, 5.00%, 10/01/34					1,500				1,632,195
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30					3,300				3,735,073
									85,758,165
Utility — 1.3%
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 0.00%, 9/01/31 (b)					6,000				2,915,100
Total Municipal Bonds — 129.8%									298,609,896
Municipal Bonds Transferred to Tender Option Bond Trusts (e)
New Jersey — 29.9%
County/City/Special District/School District — 6.0%
County of Union New Jersey Utilities Authority, Refunding LRB, Resource Recovery Facility, Covanta Union, Inc., Series A, AMT, 5.25%, 12/01/31					12,820				13,845,985
Education — 1.0%
Rutgers—The State University of New Jersey, RB, Series F, 5.00%, 5/01/39					2,009				2,231,609
State — 7.4%
Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.75%, 11/01/28					5,460				6,983,122
New Jersey EDA, RB, School Facilities Construction (AGC):
6.00%, 12/15/18 (a)					1,185				1,394,939
6.00%, 12/15/34					2,415				2,844,582

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

31

Schedule of Investments (continued)	BlackRock MuniYield New Jersey Fund, Inc. (MYJ) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (e)				Par (000)				Value
New Jersey (continued)
State (concluded)
New Jersey EDA, Refunding RB, 5.00%, 3/01/29 (f)				$	5,230			$	5,721,742
									16,944,385
Transportation — 15.5%
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (f)					8,820				9,575,168
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
Series A (AMBAC), 5.00%, 12/15/32					4,100				4,512,501
Series B, 5.25%, 6/15/36 (f)					5,001				5,438,954
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41					11,250				12,124,350
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35					3,764				4,109,052
									35,760,025
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 29.9%									68,782,004

Municipal Bonds Transferred to Tender Option Bond Trusts (e)				Par (000)				Value
New Jersey (concluded)
Total Long-Term Investments (Cost — $342,720,297) — 159.7%								$	367,391,900
Short-Term Securities				Shares
BIF New Jersey Municipal Money Fund, 0.00% (g)(h)					2,287,613				2,287,613
Total Short-Term Securities (Cost — $2,287,613) — 1.0%									2,287,613
Total Investments (Cost — $345,007,910) — 160.7%									369,679,513
Other Assets Less Liabilities — 0.9%									2,194,803
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (17.2%)									(39,561,968	)
VRDP Shares, at Liquidation Value — (44.4%)									(102,200,000	)
Net Assets Applicable to Common Shares — 100.0%								$	230,112,348

Notes to Schedule of Investments

(a)				U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)				Zero-coupon bond.
(c)				Security is collateralized by municipal or U.S. Treasury obligations.
(d)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(e)				Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(f)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from June 15, 2019 to September 1, 2020 is $14,346,748.
(g)				Investments in issuers considered to be an affiliate of the Fund during the year ended July 31, 2014, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

---

Affiliate				Shares Held at July 31, 2013				Net Activity				Shares Held at July 31, 2014				Income
BIF New Jersey Municipal Money Fund					3,819,692				(1,532,079)				2,287,613				—

(h)				Represents the current yield as of report date.
•				Financial futures contracts outstanding as of July 31, 2014 were as follows:

---

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized Appreciation

(137)

10-Year U.S. Treasury Note

Chicago Board of Trade

September 2014

$17,071,484

$58,675

•				For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•				Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

	•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
	•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

32

ANNUAL REPORT

JULY 31, 2014

Schedule of Investments (concluded)	BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

	Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.
	The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of July 31, 2014:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments1								$	367,391,900				—			$	367,391,900
Short-Term Securities				$	2,287,613								—				2,287,613
Total				$	2,287,613			$	367,391,900				—			$	369,679,513

1

See above Schedule of Investments for values in each sector.

---

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments2
Assets:
Interest rate contracts				$	58,675				—				—			$	58,675

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of July 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Assets:
Cash pledged for financial futures contracts				$	188,000				—				—			$	188,000
Liabilities:
TOB trust Certificates					—			$	(39,553,519	)			—				(39,553,519	)
VRDP Shares					—				(102,200,000	)			—				(102,200,000	)
Total				$	188,000			$	(141,753,519	)			—			$	(141,565,519	)

There were no transfers between levels during the year ended July 31, 2014.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

33

Statements of Assets and Liabilities

July 31, 2014				BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)				BlackRock MuniYield Arizona Fund, Inc. (MZA)				BlackRock MuniYield California Fund, Inc. (MYC)				BlackRock MuniYield Investment Fund (MYF)				BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Assets
Investments at value — unaffiliated1				$	98,469,014			$	103,067,908			$	530,222,148			$	342,569,429			$	367,391,900
Investments at value — affiliated2					441,039				3,656,883				1,241,527				1,361,852				2,287,613
Cash					3,236				—				—				—				—
Cash pledged for financial futures contracts					96,000				—				302,000				183,000				188,000
Interest receivable					1,042,603				761,902				7,276,213				4,212,765				3,061,166
Investments sold receivable					—				5,340				8,448,069				15,369				—
Variation margin receivable on financial futures contracts					1,828				—				10,358				6,281				6,421
Deferred offering costs					137,674				173,865				236,578				195,008				242,671
Prepaid expenses					55,585				10,277				28,090				26,270				26,483
Total assets					100,246,979				107,676,175				547,764,983				348,569,974				373,204,254
Accrued Liabilities
Investments purchased payable					—				—				7,041,758				—				—
Income dividends payable — Common Shares					242,066				318,816				1,685,317				1,076,307				1,071,336
Investment advisory fees payable					46,541				45,430				229,912				147,006				157,316
Interest expense and fees payable					1,127				195				16,574				17,087				8,449
Officer’s and Directors’ fees payable					710				729				3,865				2,299				2,503
Other accrued expenses payable					30,888				68,375				120,751				96,078				98,783
Total accrued liabilities					321,332				433,545				9,098,177				1,338,777				1,338,387
Other Liabilities
TOB trust certificates					5,759,171				3,330,000				83,283,292				75,865,362				39,553,519
VRDP Shares, at liquidation value of $100,000 per share3,4,5					29,600,000				37,300,000				105,900,000				59,400,000				102,200,000
Total other liabilities					35,359,171				40,630,000				189,183,292				135,265,362				141,753,519
Total liabilities					35,680,503				41,063,545				198,281,469				136,604,139				143,091,906
Net Assets Applicable to Common Shareholders				$	64,566,476			$	66,612,630			$	349,483,514			$	211,965,835			$	230,112,348
Net Assets Applicable to Common Shareholders Consist of
Paid-in capital6,7				$	59,593,453			$	60,849,569			$	301,992,643			$	189,735,209			$	205,579,922
Undistributed net investment income					622,897				784,095				3,332,271				3,974,674				4,648,334
Accumulated net realized loss					(1,439,174	)			(1,997,002	)			(2,462,203	)			(14,981,934	)			(4,846,186	)
Net unrealized appreciation/depreciation					5,789,300				6,975,968				46,620,803				33,237,886				24,730,278
Net Assets Applicable to Common Shareholders				$	64,566,476			$	66,612,630			$	349,483,514			$	211,965,835			$	230,112,348
Net asset value per Common Share				$	15.34			$	14.52			$	16.38			$	15.56			$	16.11
1 Investments at cost — unaffiliated				$	92,694,894			$	96,091,940			$	483,654,559			$	309,388,933			$	342,720,297
2 Investments at cost — affiliated				$	441,039			$	3,656,883			$	1,241,527			$	1,361,852			$	2,287,613
3 Preferred Shares outstanding, par value $0.10 per share					296				373				1,059				—				1,022
4 Preferred Shares outstanding, par value $0.05 per share					—				—				—				594				—
5 Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”)					1,536				1,985				8,059				1,000,594				5,782
6 Common Shares outstanding					4,209,844				4,587,284				21,333,129				13,624,137				14,284,482
7 Common Shares authorized					200 million				200 million				200 million				Unlimited				200 million

See Notes to Financial Statements.

34

ANNUAL REPORT

JULY 31, 2014

Statements of Operations

Year Ended July 31, 2014				BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)				BlackRock MuniYield Arizona Fund, Inc. (MZA)				BlackRock MuniYield California Fund, Inc. (MYC)				BlackRock MuniYield Investment Fund (MYF)				BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Investment Income
Interest				$	4,010,820			$	4,795,586			$	24,239,212			$	16,168,733			$	16,304,637
Income — affiliated					—				200				169				695				—
Total income					4,010,820				4,795,786				24,239,381				16,169,428				16,304,637
Expenses
Investment advisory					536,806				520,920				2,704,682				1,681,643				1,802,311
Liquidity fees					275,097				—				—				—				—
Professional					56,235				53,835				95,393				71,197				76,052
Remarketing fees on Preferred Shares					30,010				—				—				—				—
Accounting services					17,273				18,088				78,942				51,791				54,609
Transfer agent					15,243				18,319				31,275				25,167				28,817
Custodian					8,996				8,355				24,780				16,814				18,963
Registration					8,988				1,969				9,065				9,001				8,999
Printing					7,191				7,198				11,458				9,471				9,986
Officer and Directors					5,697				5,835				30,544				18,318				20,045
Miscellaneous					51,790				38,089				64,920				63,773				62,841
Total expenses excluding interest expense, fees and amortization of offering costs					1,013,326				672,608				3,051,059				1,947,175				2,082,623
Interest expense, fees and amortization of offering costs1					104,475				403,170				1,681,076				1,100,474				1,338,707
Total expenses					1,117,801				1,075,778				4,732,135				3,047,649				3,421,330
Less fees waived by Manager					(531	)			(486	)			(2,051	)			(965	)			(3,646	)
Total expenses after fees waived					1,117,270				1,075,292				4,730,084				3,046,684				3,417,684
Net investment income					2,893,550				3,720,494				19,509,297				13,122,744				12,886,953
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments					(129,977	)			(1,136,225	)			502,851				(3,742,772	)			(3,298,325	)
Financial futures contracts					(152,247	)			—				(516,412	)			(291,045	)			(311,870	)
					(282,224	)			(1,136,225	)			(13,561	)			(4,033,817	)			(3,610,195	)
Net change in unrealized appreciation/depreciation on:
Investments					3,817,652				5,587,394				31,014,164				21,418,385				20,933,665
Financial futures contracts					15,180				—				53,214				57,390				58,675
					3,832,832				5,587,394				31,067,378				21,475,775				20,992,340
Net realized and unrealized gain					3,550,608				4,451,169				31,053,817				17,441,958				17,382,145
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations				$	6,444,158			$	8,171,663			$	50,563,114			$	30,564,702			$	30,269,098

1

Related to TOBs and/or VRDP Shares.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

35

Statements of Changes in Net Assets	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

				Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:				2014				2013
Operations
Net investment income				$	2,893,550			$	3,050,548
Net realized gain (loss)					(282,224	)			853,441
Net change in unrealized appreciation/depreciation					3,832,832				(6,746,189	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations					6,444,158				(2,842,200	)
Dividends to Common Shareholders From1
Net investment income					(3,092,130	)			(3,156,624	)
Capital Share Transactions
Reinvestment of common dividends					—				54,512
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders					3,352,028				(5,944,312	)
Beginning of year					61,214,448				67,158,760
End of year				$	64,566,476			$	61,214,448
Undistributed net investment income, end of year				$	622,897			$	795,824

BlackRock MuniYield Arizona Fund, Inc. (MZA)

				Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:				2014				2013
Operations
Net investment income				$	3,720,494			$	3,798,713
Net realized gain (loss)					(1,136,225	)			256,297
Net change in unrealized appreciation/depreciation					5,587,394				(7,336,879	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations					8,171,663				(3,281,869	)
Dividends to Common Shareholders From1
Net investment income					(3,821,746	)			(3,816,654	)
Capital Share Transactions
Reinvestment of common dividends					96,021				194,255
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders					4,445,938				(6,904,268	)
Beginning of year					62,166,692				69,070,960
End of year				$	66,612,630			$	62,166,692
Undistributed net investment income, end of year				$	784,095			$	878,921

1

Dividends for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

36

ANNUAL REPORT

JULY 31, 2014

Statements of Changes in Net Assets	BlackRock MuniYield California Fund, Inc. (MYC)

				Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:				2014				2013
Operations
Net investment income				$	19,509,297			$	19,342,849
Net realized loss					(13,561	)			(266,797	)
Net change in unrealized appreciation/depreciation					31,067,378				(41,706,382	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations					50,563,114				(22,630,330	)
Dividends to Common Shareholders From1
Net investment income					(20,223,806	)			(20,214,466	)
Capital Share Transactions
Reinvestment of common dividends					—				648,309
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders					30,339,308				(42,196,487	)
Beginning of year					319,144,206				361,340,693
End of year				$	349,483,514			$	319,144,206
Undistributed net investment income, end of year				$	3,332,271			$	4,038,794

BlackRock MuniYield Investment Fund (MYF)

				Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:				2014				2013
Operations
Net investment income				$	13,122,744			$	12,847,313
Net realized gain (loss)					(4,033,817	)			508,374
Net change in unrealized appreciation/depreciation					21,475,775				(28,251,097	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations					30,564,702				(14,895,410	)
Dividends to Common Shareholders From1
Net investment income					(12,915,682	)			(12,908,151	)
Capital Share Transactions
Reinvestment of common dividends					—				342,807
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders					17,649,020				(27,460,754	)
Beginning of year					194,316,815				221,777,569
End of year				$	211,965,835			$	194,316,815
Undistributed net investment income, end of year				$	3,974,674			$	3,757,218

1

Dividends for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

37

Statements of Changes in Net Assets	BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

				Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:				2014				2013
Operations
Net investment income				$	12,886,953			$	12,676,794
Net realized gain (loss)					(3,610,195	)			839,918
Net change in unrealized appreciation/depreciation					20,992,340				(28,435,795	)
Distributions to VRDP Shareholders from net realized gain					—				(43,759	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations					30,269,098				(14,962,842	)
Dividends and Distributions to Common Shareholders From1
Net investment income					(12,756,041	)			(12,730,155	)
Net realized gain					(499,344	)			(918,415	)
Decrease in net assets resulting from dividends and distributions to Common Shareholders					(13,255,385	)			(13,648,570	)
Capital Share Transactions
Reinvestment of common dividends and distributions					—				950,740
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders					17,013,713				(27,660,672	)
Beginning of year					213,098,635				240,759,307
End of year				$	230,112,348			$	213,098,635
Undistributed net investment income, end of year				$	4,648,334			$	4,468,086

1

Dividends for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

38

ANNUAL REPORT

JULY 31, 2014

Statements of Cash Flows

Year Ended July 31, 2014				BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)				BlackRock MuniYield Arizona Fund, Inc. (MZA)				BlackRock MuniYield California Fund, Inc. (MYC)				BlackRock MuniYield Investment Fund (MYF)				BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Cash Provided by Operating Activities
Net increase in net assets resulting from operations				$	6,444,158			$	8,171,663			$	50,563,114			$	30,564,702			$	30,269,098
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
(Increase) decrease in interest receivable					(86,903	)			13,113				191,780				19,255				509,072
(Increase) decrease variation margin receivable on financial futures contracts					(1,828	)			—				(10,358	)			(6,281	)			(6,421	)
Increase in prepaid expenses					(16,308	)			(9,160	)			(22,344	)			(22,634	)			(22,754	)
(Increase) decrease in cash pledged for financial futures contracts					(96,000	)			—				(302,000	)			(183,000	)			(188,000	)
Increase (decrease) in investment advisory fees payable					1,089				1,390				(4,357	)			587				5,403
Increase (decrease) in interest expense and fees payable					(817	)			(212	)			(33,491	)			(20,625	)			(5,645	)
Increase in other accrued expenses payable					7,745				12,967				13,914				11,648				18,056
Decrease in Officer’s and Directors’ fees payable					(234	)			(250	)			(1,265	)			(880	)			(907	)
Net realized gain (loss) on investments					129,977				1,136,225				(502,851	)			3,742,772				3,298,325
Net unrealized gain on investments					(3,817,652	)			(5,587,394	)			(31,014,164	)			(21,418,385	)			(20,933,665	)
Amortization of premium and accretion of discount on investments					472,072				228,277				2,095,342				826,699				680,865
Proceeds from sales of long-term investments					22,091,535				16,711,685				153,879,345				72,051,162				67,553,801
Purchases of long-term investments					(21,948,172	)			(13,509,820	)			(123,194,689	)			(67,797,753	)			(68,357,332	)
Net proceeds from sales (purchases) of short-term securities					361,503				(3,446,623	)			2,058,386				6,342,108				1,532,079
Net cash provided by operating activities					3,540,165				3,721,861				53,716,362				24,109,375				14,351,975
Cash Used for Financing Activities
Proceeds from TOB trust certificates					4,594,170				—				—				—				—
Repayments of TOB trust certificates					(5,037,751	)			—				(33,491,504	)			(11,193,734	)			(1,111,973	)
Cash dividends paid to Common Shareholders					(3,113,179	)			(3,725,271	)			(20,223,806	)			(12,915,682	)			(13,241,101	)
Increase (decrease) in bank overdraft					—				(2,391	)			(7,947	)			(6,147	)			(6,115	)
Increase in amortization of deferred offering costs					19,831				5,801				6,895				6,188				7,214
Net cash used for financing activities					(3,536,929	)			(3,721,861	)			(53,716,362	)			(24,109,375	)			(14,351,975	)
Cash
Net increase in cash					3,236				—				—				—				—
Cash at beginning of year					—				—				—				—				—
Cash at end of year				$	3,236				—				—				—				—
Supplemental Disclosure of Cash Flow Information
Cash paid during the year for interest and fees				$	85,461			$	397,581			$	1,707,672			$	1,114,911			$	1,337,138
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends paid to Common Shareholders					—				96,021				—				—				—

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

39

Financial Highlights	BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

				Year Ended July 31,
				2014				2013				2012				2011				2010
Per Share Operating Performance
Net asset value, beginning of year				$	14.54			$	15.97			$	14.51			$	14.50			$	12.99
Net investment income1					0.69				0.72				0.74				0.87				0.88
Net realized and unrealized gain (loss)					0.84				(1.40	)			1.48				(0.03	)			1.40
Dividends to AMPS shareholders from net investment income					—				—				(0.02	)			(0.10	)			(0.10	)
Net increase (decrease) from investment operations					1.53				(0.68	)			2.20				0.74				2.18
Dividends to Common Shareholders from net investment income2					(0.73	)			(0.75	)			(0.74	)			(0.73	)			(0.67	)
Net asset value, end of year				$	15.34			$	14.54			$	15.97			$	14.51			$	14.50
Market price, end of year				$	13.64			$	13.06			$	15.80			$	12.98			$	13.54
Total Return Applicable to Common Shareholders3
Based on net asset value					11.40%				(4.38)%				15.73%				5.71%				17.67%
Based on market price					10.27%				(13.18)%				28.00%				1.26%				23.05%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses					1.80%				1.79%				1.82%	4			1.23%	4			1.20%
Total expenses after fees waived and paid indirectly					1.80%				1.78%				1.81%	4			1.22%	4			1.12%	4
Total expenses after fees waived and paid indirectly and excluding interest expense, fees, and amortization of offering costs5					1.63%	6			1.57%	6			1.57%	4,6			1.21%	4			1.12%	4
Net investment income					4.66%				4.59%				4.86%	4			6.16%	4			6.30%	4
Dividends to AMPS shareholders					—				—				0.11%				0.71%				0.75%
Net investment income to Common Shareholders					4.66%				4.59%				4.75%				5.45%				5.55%
Supplemental Data
Net assets applicable Common Shareholders, end of year (000)				$	64,566			$	61,214			$	67,159			$	61,019			$	61,010
AMPS outstanding at $25,000 liquidation preference, end of year (000)					—				—				—			$	29,632			$	29,625
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)				$	29,600			$	29,600			$	29,600				—				—
Portfolio turnover rate					21%				21%				27%				23%				27%
Asset coverage per AMPS at $25,000 liquidation preference, end of year					—				—				—			$	76,499			$	76,492
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year				$	318,130			$	306,806			$	326,888				—				—

1

Based on average Common Shares outstanding.

2

Dividends for annual periods determined in accordance with federal income tax regulations.

3

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

4

Does not reflect the effect of dividends to AMPS shareholders.

5

Interest expense, fees and amortization of offering cost relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.

6

For the years ended July 31, 2014, July 31, 2013 and July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.14%, 1.13% and 1.18%, respectively.

See Notes to Financial Statements.

40

ANNUAL REPORT

JULY 31, 2014

Financial Highlights	BlackRock MuniYield Arizona Fund, Inc. (MZA)

				Year Ended July 31,
				2014				2013				2012				2011				2010
Per Share Operating Performance
Net asset value, beginning of year				$	13.57			$	15.12			$	13.38			$	13.73			$	12.40
Net investment income1					0.81				0.83				0.80				0.87				0.93
Net realized and unrealized gain (loss)					0.97				(1.55	)			1.77				(0.33	)			1.28
Dividends to AMPS shareholders from net investment income					—				—				—				(0.06	)			(0.06	)
Net increase (decrease) from investment operations					1.78				(0.72	)			2.57				0.48				2.15
Dividends to Common Shareholders from net investment income2					(0.83	)			(0.83	)			(0.83	)			(0.83	)			(0.82	)
Net asset value, end of year				$	14.52			$	13.57			$	15.12			$	13.38			$	13.73
Market price, end of year				$	15.00			$	13.33			$	15.61			$	12.83			$	13.67
Total Return Applicable to Common Shareholders3
Based on net asset value					13.63%				(5.08)%				19.86%				3.92%				17.75%
Based on market price					19.50%				(9.69)%				29.05%				0.09%				13.13%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses					1.69%				1.66%				1.96%				1.52%	4			1.25%	4
Total expenses after fees waived and paid indirectly					1.69%				1.66%				1.96%				1.52%	4			1.24%	4
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5					1.06%				1.03%				1.58%	6			1.43%	4			1.22%	4
Net investment income					5.85%				5.53%				5.62%				6.62%	4			6.99%	4
Dividends to AMPS shareholders					—				—				—				0.36%				0.44%
Net investment income to Common Shareholders					5.85%				5.53%				5.62%				6.26%				6.56%
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)				$	66,613			$	62,167			$	69,071			$	61,086			$	62,618
AMPS outstanding at $25,000 liquidation preference, end of year (000)					—				—				—				—			$	38,800
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)				$	37,300			$	37,300			$	37,300			$	37,300				—
Portfolio turnover rate					13%				16%				26%				16%				25%
Asset coverage per AMPS at $25,000 liquidation preference, end of year					—				—				—				—			$	65,350
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year				$	278,586			$	266,667			$	285,177			$	263,770				—

1

Based on average Common Shares outstanding.

2

Dividends for annual periods determined in accordance with federal income tax regulations.

3

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

4

Does not reflect the effect of dividends to AMPS shareholders.

5

Interest expense, fees and amortization of offering cost relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.

6

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.14%.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

41

Financial Highlights	BlackRock MuniYield California Fund, Inc. (MYC)

				Year Ended July 31,
				2014				2013				2012				2011				2010
Per Share Operating Performance
Net asset value, beginning of year				$	14.96			$	16.97			$	14.38			$	14.76			$	13.47
Net investment income1					0.91				0.91				0.94				0.95				0.94
Net realized and unrealized gain (loss)					1.46				(1.97	)			2.60				(0.37	)			1.21
Dividends to AMPS Shareholders from net investment income					—				—				—				(0.03	)			(0.03	)
Net increase (decrease) from investment operations					2.37				(1.06	)			3.54				0.55				2.12
Dividends to Common Shareholders from net investment income2					(0.95	)			(0.95	)			(0.95	)			(0.93	)			(0.83	)
Net asset value, end of year				$	16.38			$	14.96			$	16.97			$	14.38			$	14.76
Market price, end of year				$	14.87			$	13.94			$	17.31			$	13.29			$	14.44
Total Return Applicable to Common Shareholders3
Based on net asset value					16.87%				(6.61)%				25.45%				4.28%				16.59%
Based on market price					13.86%				(14.68)%				38.46%				(1.49)%				23.51%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses					1.43%				1.46%				1.64%				1.49%	4			1.19%	4
Total expenses after fees waived					1.42%				1.45%				1.64%				1.49%	4			1.18%	4
Total expenses after fees waived and excluding interest expense, fees, and amortization of offering costs5					0.92%				0.92%				1.21%	6			1.16%	4			0.99%	4
Net investment income					5.88%				5.39%				5.96%				6.76%	4			6.53%	4
Dividends to AMPS shareholders					—				—				—				0.18%				0.22%
Net investment income to Common Shareholders					5.88%				5.39%				5.96%				6.58%				6.31%
Supplemental Data
Net assets applicable Common Shareholders, end of year (000)				$	349,484			$	319,144			$	361,341			$	306,280			$	314,326
AMPS outstanding at $25,000 liquidation preference, end of year (000)					—				—				—				—			$	105,950
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)				$	105,900			$	105,900			$	105,900			$	105,900				—
Portfolio turnover rate					23%				27%				48%				33%				41%
Asset coverage per AMPS at $25,000 liquidation preference, end of year (000)					—				—				—				—			$	99,173
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year				$	430,013			$	401,364			$	441,209			$	389,216				—

1

Based on average Common Shares outstanding.

2

Dividends for annual periods determined in accordance with federal income tax regulations.

3

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

4

Does not reflect the effect of dividends to AMPS Shareholders.

5

Interest expense and fees relate to TOBs and VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.

6

For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.97%.

See Notes to Financial Statements.

42

ANNUAL REPORT

JULY 31, 2014

Financial Highlights	BlackRock MuniYield Investment Fund (MYF)

				Year Ended July 31,
				2014				2013				2012				2011				2010
Per Share Operating Performance
Net asset value, beginning of year				$	14.26			$	16.30			$	13.71			$	14.26			$	12.95
Net investment income1					0.96				0.94				0.93				0.97				0.96
Net realized and unrealized gain (loss)					1.29				(2.03	)			2.60				(0.58	)			1.18
Dividends to AMPS shareholders from net investment income					—				—				—				(0.02	)			(0.02	)
Net increase (decrease) from investment operations					2.25				(1.09	)			3.53				0.37				2.12
Dividends to Common Shareholders from net investment income2					(0.95	)			(0.95	)			(0.94	)			(0.92	)			(0.81	)
Net asset value, end of year				$	15.56			$	14.26			$	16.30			$	13.71			$	14.26
Market price, end of year				$	14.56			$	13.55			$	16.52			$	13.08			$	14.36
Total Return Applicable to Common Shareholders3
Based on net asset value					16.75%				(7.14)%				26.55%				2.97%				17.12%
Based on market price					14.98%				(12.94)%				34.44%				(2.45)%				30.32%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses					1.52%				1.55%				1.66%				1.45%	4			1.26%	4
Total expenses after fees waived					1.52%				1.55%				1.66%				1.45%	4			1.26%	4
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs5					0.97%				0.97%				1.22%	6			1.14%	4			1.02%	4
Net investment income					6.56%				5.82%				6.19%				7.22%	4			6.92%	4
Dividends to AMPS shareholders					—				—				—				0.15%				0.18%
Net investment income to Common Shareholders					6.56%				5.82%				6.19%				7.07%				6.74%
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)				$	211,966			$	194,317			$	221,778			$	186,127			$	193,270
AMPS outstanding at $25,000 liquidation preference, end of year (000)					—				—				—				—			$	59,475
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)				$	59,400			$	59,400			$	59,400			$	59,400				—
Portfolio turnover rate					18%				33%				34%				27%				41%
Asset coverage per AMPS at $25,000 liquidation preference, end of year					—				—				—				—			$	106,242
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year				$	456,845			$	427,133			$	473,363			$	413,346				—

1

Based on average Common Shares outstanding.

2

Dividends for annual periods determined in accordance with federal income tax regulations.

3

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

4

Does not reflect the effect of dividends to AMPS shareholders.

5

Interest expense and fees relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.

6

For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.99%.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2014

43

Financial Highlights	BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

				Year Ended July 31,
				2014				2013				2012				2011				2010
Per Share Operating Performance
Net asset value, beginning of year				$	14.92			$	16.92			$	14.84			$	15.24			$	14.13
Net investment income1					0.90				0.89				0.86				0.92				1.00
Net realized and unrealized gain (loss)					1.21				(1.94	)			2.11				(0.41	)			1.00
Distributions to VRDP Shareholders from net realized gain					—				(0.00	)2			—				—				—
Distributions to AMPS Shareholders from net investment income					—				—				—				(0.03	)			(0.04	)
Net increase (decrease) from investment operations					2.11				(1.05	)			2.97				0.48				1.96
Dividends and distributions to Common Shareholders from:3
Net investment income					(0.89	)			(0.89	)			(0.89	)			(0.88	)			(0.85	)
Net realized gain					(0.03	)			(0.06	)			—				—				—
Total dividends and distributions					(0.92	)			(0.95	)			(0.89	)			(0.88	)			(0.85	)
Net asset value, end of period				$	16.11			$	14.92			$	16.92			$	14.84			$	15.24
Market price, end of year				$	14.67			$	13.74			$	17.07			$	13.53			$	15.19
Total Return Applicable to Common Shareholders4
Based on net asset value					15.27%				(6.51)%				20.72%				3.55%				14.34%
Based on market price					13.99%				(14.66)%				33.59%				(5.28)%				19.38%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses					1.57%				1.48%				1.61%				1.26%	5			1.01%	5
Total expenses after fees waived					1.57%				1.48%				1.60%				1.25%	5			1.00%	5
Total expenses after fees waived and excluding interest expense and fees, and amortization of offering costs6					0.95%				0.92%				1.28%	7			1.14%	5			0.98%	5
Net investment income					5.89%				5.32%				5.41%				6.26%	5			6.71%	5
Dividends to AMPS Shareholders					—				—				—				0.23%				0.30%
Net investment income to Common Shareholders					5.89%				5.32%				5.41%				6.03%				6.41%
Supplemental Data
Net assets applicable Common Shareholders, end of year (000)				$	230,112			$	213,099			$	240,759			$	211,121			$	216,433
AMPS outstanding at $25,000 liquidation preference, end of year (000)					—				—				—				—			$	102,200
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)				$	102,200			$	102,200			$	102,200			$	102,200				—
Portfolio turnover rate					19%				7%				23%				18%				15%
Asset coverage per AMPS at $25,000 liquidation preference, end of year					—				—				—				—			$	77,946
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year				$	325,159			$	308,511			$	335,577			$	306,576				—

1

Based on average Common Shares outstanding.

2

Amount is greater than $(0.005) per share.

3

Dividends and distributions for annual periods determined in accordance with federal income tax regulations.

4

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of dividends and distributions.

5

Does not reflect the effect of dividends to AMPS Shareholders.

6

Interest expense, fees and amortization of offering cost relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.

7

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.93%.

See Notes to Financial Statements.

44

ANNUAL REPORT

JULY 31, 2014

Notes to Financial Statements

1. Organization:

BlackRock Muni New York Intermediate Duration Fund, Inc. (“MNE”), BlackRock MuniYield Arizona Find, Inc., (“MZA”), Blackrock MuniYield California Fund, Inc. (“MYC”), BlackRock MuniYield Investment Fund (“MYF”) and BlackRock MuniYield New Jersey Fund, Inc. (“MYJ”) (collectively, the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. MNE, MZA, MYC and MYJ are organized as Maryland corporations. MYF is organized as a Massachusetts business trust. The Board of Directors and Board of Trustees of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the NAVs of their Common Shares on a daily basis.

2. Significant Accounting Policies:

The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Funds:

Valuation: U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end registered investment companies are valued at NAV each business day.

In the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., financial futures contracts), or certain borrowings (e.g., TOBs) that would be “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of the Fund’s future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security”. Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 9.

ANNUAL REPORT

JULY 31, 2014

45

Notes to Financial Statements (continued)

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the independent Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Deferred compensation liabilities are included in officer’s and director’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Recent Accounting Standard: In June 2014, the Financial Accounting Standards Board issued guidance to improve the financial reporting of reverse repurchase agreements and other similar transactions. The guidance will require expanded disclosure for entities that enter into reverse repurchase agreements and similar transactions accounted for as secured borrowings. It is effective for financial statements with fiscal years beginning on or after December 15, 2014 and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Funds’ financial statement disclosures.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods.

The Funds have an arrangement with the custodians whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

3. Securities and Other Investments:

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Funds leverage their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf of a fund, transfers municipal bonds into a trust (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.

The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be collapsed without the consent of a Fund, as the TOB Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a termination event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year ended July 31, 2014, no TOBs in which the Funds participated were terminated without the consent of the Funds.

46

ANNUAL REPORT

JULY 31, 2014

Notes to Financial Statements (continued)

The cash received by the TOB from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Fund. The Fund typically invests the cash received in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of each Fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

The Funds may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Fund invests in TOBS on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB on a recourse basis, the Fund will typically enter into a reimbursement agreement with the Liquidity Provider where the Fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Fund investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably, including the maximum potential amounts owed by the Funds at July 31, 2014, in proportion to their participation. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by the Funds at July 31, 2014.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At July 31, 2014, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:

---

				Underlying Municipal Bonds Transferred to TOBs				Liability For TOB Trust Certificates				Range of Interest Rates
MNE				$	10,574,191			$	5,759,171			0.06%—0.11%
MZA				$	7,390,544			$	3,330,000			0.06%—0.07%
MYC				$	174,904,206			$	83,283,292			0.06%—0.09%
MYF				$	148,832,377			$	75,865,362			0.06%—0.31%
MYJ				$	68,782,004			$	39,553,519			0.06%—0.31%

For the year ended July 31, 2014, the Funds’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

---

				Average TOB Trust Certificates Outstanding				Daily Weighted Average Interest Rate
MNE				$	5,887,920				0.59%
MZA				$	3,330,000				0.60%
MYC				$	103,052,369				0.59%
MYF				$	76,750,918				0.64%
MYJ				$	39,574,522				0.71%

Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

4. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to economically hedge their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.

Financial Futures Contracts: The Funds purchase and/or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (e.g., interest rate risk). Financial futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

ANNUAL REPORT

JULY 31, 2014

47

Notes to Financial Statements (continued)

Upon entering into a financial futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Funds agree 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. Variation margin is recorded by the Funds as unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Funds record 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. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

The following is a summary of the Funds’ derivative financial instruments categorized by risk exposure:

---

Fair Values of Derivative Financial Instruments as of July 31, 2014

Value

Derivative Assets

Statements of Assets and Liabilities Location

MNE

MYC

MYF

MYJ

Interest rate contracts

Net unrealized appreciation/depreciation1

$15,180

$53,214

$57,390

$58,675

1

Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

---

The Effect of Derivative Financial Instruments in the Statements of Operations Year Ended July 31, 2014

Net Realized Gain (Loss) From

Net Change in Unrealized Appreciation/ Depreciation on

MNE

MYC

MNE

MYC

Interest rate contracts:

Financial futures contracts

$(152,247)

$(516,412)

$15,180

$53,214

MYF

MYJ

MYF

MYJ

Interest rate contracts:

Financial futures contracts

$(291,045)

$(311,870)

$57,390

$58,675

For the year ended July 31, 2014, the average quarterly balances of outstanding derivative financial instruments were as follows:

---

				MNE				MZA				MYC				MYF				MYJ
Financial futures contracts:
Average number of contracts purchased					25	2			—				—				—				—
Average number of contracts sold					47				—				230				155				168
Average notional value of contracts purchased				$	3,097,979	2			—				—				—				—
Average notional value of contracts sold				$	5,916,387				—			$	28,871,777			$	19,440,559			$	21,041,867

2

Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter.

Counterparty Credit Risk: A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

48

ANNUAL REPORT

JULY 31, 2014

Notes to Financial Statements (continued)

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:

---

				MNE				MZA					MYC				MYF				MYJ
Investment advisory fee					0.55%				0.50%				0.50%				0.50%				0.50%

Average daily net assets are the average daily value of each Fund’s total assets minus its total accrued liabilities.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investments in other affiliated investment companies, if any. These amounts waived are shown as fees waved by Manager in the Statements of Operations.

Prior to July 1, 2014, BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager, served as a sub-advisor to each Fund pursuant to sub-advisory agreements with the Manager, and received for its services a monthly fee from the Manager at an annual rate equal to a percentage of the investment advisory fees paid by each Fund to the Manager under the Investment Advisory Agreements. Effective July 1, 2014, the sub-advisory agreements between the Manager and BIM, with respect to each Fund, expired.

Certain officers and/or Directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Officer and Directors in the Statements of Operations.

The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers, or common directors. For the year ended July 31, 2014, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

---

				MYC				MYF
Purchases					$1,593,438				—
Sales					$4,853,422				$2,805,356

6. Purchases and Sales:

Purchases and sales of investments, excluding short-term securities, for the year ended July 31, 2014, were as follows:

---

				MNE				MZA				MYC				MYF				MYJ
Purchases				$	20,914,606			$	13,509,820			$	121,090,123			$	59,642,647			$	68,357,332
Sales				$	20,534,982			$	16,538,052			$	159,251,304			$	69,257,250			$	67,553,801

7. Income Tax Information:

It is the Funds’ policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable income to their shareholders. Therefore, no federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ U.S. federal tax returns remains open for each of the four years ended July 31, 2014. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application of the Funds’ facts and circumstances and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

ANNUAL REPORT

JULY 31, 2014

49

Notes to Financial Statements (continued)

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of July 31, 2014, the following permanent differences attributable to amortization methods on fixed income securities, non-deductible expenses, and the reclassification of distributions were reclassified to the following accounts:

---

				MNE				MZA				MYC				MYF				MYJ
Paid-in capital				$	(25,661	)		$	(6,470	)		$	(8,797	)		$	(7,255	)		$	(9,051	)
Undistributed net investment income				$	25,653			$	6,426			$	7,986			$	10,394			$	49,336
Accumulated net realized loss				$	8			$	44			$	811			$	(3,139	)		$	(40,285	)

The tax character of distributions paid was as follows:

---

								MNE				MZA				MYC				MYF				MYJ
Tax-exempt income1					7/31/14			$	3,131,608			$	4,198,022			$	21,293,193			$	13,515,380			$	13,763,483
					7/31/13				3,230,525				4,218,308				21,361,362				13,550,755				13,747,730
Ordinary income2					7/31/14				4,402				383				—				128				137,279
					7/31/13				2,002				2,305				—				697				64,566
Long-term capital gain3					7/31/14				—				—				—				—				403,623
					7/31/13				—				—				—				—				962,174
Total					7/31/14			$	3,136,010			$	4,198,405			$	21,293,193			$	13,515,508			$	14,304,385
					7/31/13			$	3,232,527			$	4,220,613			$	21,361,362			$	13,551,452			$	14,774,470

1

The Funds designate these amounts paid during the fiscal year ended July 31, 2014, as exempt-interest dividends.

2

Ordinary income consists primarily of taxable income recognized from market discount and net short-term capital gains. Additionally, all ordinary income distributions are comprised of interest related dividends and qualified short-term capital gain dividends for non-U.S. residents and are eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

3

The Fund designates the amount paid during the fiscal year ended July 31, 2014, as a capital gain dividend.

As of July 31, 2014, the tax components of accumulated net earnings were as follows:

---

				MNE				MZA				MYC				MYF				MYJ
Undistributed tax-exempt income				$	457,894			$	796,548			$	3,483,855			$	3,226,586			$	4,103,637
Undistributed ordinary income					3,398				168				146				170				—
Capital loss carryforwards					(856,860	)			(2,021,176	)			(2,574,270	)			(13,173,373	)			(2,359,182	)
Net unrealized gains4					5,368,591				6,987,521				46,581,140				32,418,550				23,990,974
Qualified late-year losses5					—				—				—				(241,307	)			(1,203,003	)
Total				$	4,973,023			$	5,763,061			$	47,490,871			$	22,230,626			$	24,532,426

4

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and discounts on fixed income securities, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the deferral of compensation to Directors and the treatment of residual interest in tender option bond trusts.

5

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of July 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

---

Expires July 31,				MNE				MZA				MYC				MYF				MYJ
2018				$	750,672			$	816,347			$	758,242			$	7,205,475				—
2019					—				68,648				—				—				—
No expiration date6					106,188				1,136,181				1,816,028				5,967,898			$	2,359,182
Total				$	856,860			$	2,021,176			$	2,574,270			$	13,173,373			$	2,359,182

6

Must be utilized prior to losses subject to expiration.

As of July 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

---

				MNE				MZA				MYC				MYF				MYJ
Tax cost				$	87,782,291			$	96,407,270			$	401,599,242			$	235,647,371			$	306,132,493
Gross unrealized appreciation				$	5,958,361			$	7,056,310			$	46,592,924			$	33,238,193			$	25,358,169
Gross unrealized depreciation					(589,770	)			(68,789	)			(11,783	)			(819,645	)			(1,364,668	)
Net unrealized appreciation				$	5,368,591			$	6,987,521			$	46,581,141			$	32,418,548			$	23,993,501

50

ANNUAL REPORT

JULY 31, 2014

Notes to Financial Statements (continued)

8. Concentration, Market and Credit Risk:

MNE, MZA, MYC and MYJ invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states or U.S. territories.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed income markets. See the Schedules of Investments for these securities and/or derivatives. Changes in market interest rates or economic conditions, including the Federal Reserve’s decision in December 2013 to taper its quantitative easing policy, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

As of July 31, 2014, MNE and MYF invested a significant portion of their assets in securities in the county/city/special district/school district and transportation sectors. MYC and MZA invested a significant portion of their assets in securities in the county/city/special district/school district and utilities sectors. MYJ invested a significant portion of its assets in securities in the transportation and state sectors. Changes in economic conditions affecting such sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

On December 10, 2013, regulators published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), which prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, ”covered funds“, as defined in the rules. Banking entities subject to the Volcker Rule are required to fully comply by July 21, 2015. The Volcker Rule may preclude banking entities and their affiliates from (i) sponsoring TOB trust programs (as such programs are presently structured) and (ii) continuing relationships with or services for existing TOB trust programs. As a result, TOB trusts may need to be restructured or unwound. There can be no assurances that TOB trusts can be restructured, that new sponsors of TOB trusts will develop, or that alternative forms of leverage will be available to the Funds. Any alternative forms of leverage may be more or less advantageous to the Funds than existing TOB leverage.

TOB transactions constitute an important component of the municipal bond market. Accordingly, implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal market is not yet certain.

9. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares (unlimited number of shares for MYF), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10, except for MYF, which is $0.05. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders. MYF is authorized to issue 1 million Preferred Shares, including AMPS.

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51

Notes to Financial Statements (continued)

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

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Year Ended				MNE				MZA				MYC				MYF				MYJ
July 31, 2014					—				6,529				—				—				—
July 31, 2013					3,405				12,706				37,874				20,747				55,771

Preferred Shares

Each Fund’s Preferred Shares rank prior to the Fund’s Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on the Funds’ Common Shares or the repurchase of the Funds’ Common Shares if the Funds fail to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, the Funds are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Funds fail to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the agencies rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

MNE, MZA, MYC, MYF and MYJ (collectively, the ”VRDP Funds“), have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended, (the ”Securities Act“) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. The VRDP Funds are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Funds are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.

The VRDP Shares outstanding as of the year ended July 31, 2014 were as follows:

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				Issue Date				Shares Issued				Aggregate Principal				Maturity Date
MNE					9/15/11				296			$	29,600,000				10/01/41
MZA					5/19/11				373			$	37,300,000				6/01/41
MYC					5/19/11				1,059			$	105,900,000				6/01/41
MYF					5/19/11				594			$	59,400,000				6/01/41
MYJ					4/21/11				1,022			$	102,200,000				5/01/41

The VRDP Funds entered into a fee agreement with the liquidity provider that required a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreement between each of MZA, MYC, MYF and MYJ and the liquidity provider is scheduled to expire on July 9, 2015 unless renewed or terminated in advance.

The initial fee agreement between MNE and the liquidity provider was for a 364 day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated in advance. On November 29, 2012, MNE entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a two year term and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory tender of MNE’s VRDP Shares on November 28, 2012 which were successfully remarketed by the remarketing agent.

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Notes to Financial Statements (continued)

In the event the fee agreement is not renewed or is terminated in advance, and the VRDP Funds do not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. The VRDP Funds are required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, the VRDP Funds are required to begin to segregate liquid assets with the VRDP Funds’ custodians to fund the redemption. There is no assurance the VRDP Funds will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Each VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, the VRDP Funds are required to begin to segregate liquid assets with the Funds’ custodians to fund the redemption. In addition, the VRDP Funds are required to redeem certain of their outstanding VRDP Shares if they fail to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of VRDP Funds. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of VRDP Shares prior to the initial termination date of the fee agreement, MNE must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

Dividends on the VRDP Shares are payable monthly at a variable rate se weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of VRDP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2014, the VRDP Shares were assigned a long-term rating of Aa2 for MNE, MZA, MYC and MYJ and Aa1 for MYF from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s, Fitch and/or S&P. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly related based upon either short-term rating. As of July 31, 2014, the short-term ratings of the liquidity provider and the VRDP Shares for MNE were P1, F1, and A1 as rated by Moody’s Fitch and S&P, respectively. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories. The short-term ratings on the VRDP Shares for MZA, MYC, MYF and MYJ were withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period, as described below.

For financial reporting purposes, VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

The VRDP Funds may incur remarketing fees of 0.10% on the aggregate principal amount of all VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of the VRDP Shares that were tendered for remarketing during the year ended July 31, 2014, were successfully remarked.

The annualized dividend rates for the VRDP Shares for the year ended July 31, 2014 were as follows:

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					MNE				MZA				MYC				MYF				MYJ
Rate					0.15%				1.01%				1.01%				1.01%				1.01%

VRDP Shares issued and outstanding remained constant for the year ended July 31, 2014.

On June 21, 2012, MZA, MYC, MYF and MYJ announced a special rate period for a three-year term ending June 24, 2015 with respect to their VRDP Shares. The liquidity and fee agreements remain in effect for the duration of the special rate period and the VRDP shares are still subject to mandatory redemption by the VRDP Funds on maturity date. The VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, MZA, MYC, MYF and MYJ are required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares. MZA, MYC, MYF and MYJ will not pay any liquidity and remarketing fees during the special rate period and instead will

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JULY 31, 2014

53

Notes to Financial Statements (concluded)

pay dividends monthly based on the sum of the SIFMA Municipal Swap Index and a percentage per annum based on the long-term ratings assigned to the VRDP Shares. The short-term ratings were withdrawn by Moody’s, Fitch and/or S&P. Short-term ratings may be re-assigned upon the termination of the special rate period when the VRDP Shares revert back to remarketable securities.

If MZA, MYC, MYF and MYJ redeem their VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch respectively, then such redemption is subject to a redemption premium (up to 3% of the liquidation preference) payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. After June 24, 2015, the holder of the VRDP Shares and MZA, MYC, MYF and MYJ may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider, which were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Fund paid a net investment income dividend in the following amounts per share on September 2, 2014 to Common Shareholders of record on August 15, 2014:

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					Common Dividend Per Share
MNE					$0.057500
MZA					$0.069500
MYC					$0.079000
MYF					$0.079000
MYJ					$0.075000

Additionally the Funds declared a net investment income dividend on September 2, 2014 payable to Common Shareholders of record on September 15, 2014 for the same amounts noted above.

The dividends declared on VRDP Shares for the period August 1, 2014 to August 28, 2014 were as follows:

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				Preferred Shares		Series			Dividends Declared
MNE				VRDP  Shares		W-7			$  3,317
MZA				VRDP  Shares		W-7			$31,741
MYC				VRDP  Shares		W-7			$90,117
MYF				VRDP  Shares		W-7			$50,547
MYJ				VRDP  Shares		W-7			$86,968

54

ANNUAL REPORT

JULY 31, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of BlackRock MuniYield Investment Fund and to the Shareholders and Board of Directors of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., and BlackRock MuniYield New Jersey Fund, Inc.:

We have audited the accompanying statements of assets and liabilities of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Investment Fund and BlackRock MuniYield New Jersey Fund, Inc. (collectively the “Funds”), including the schedules of investments, as of July 31, 2014, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are

 

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2014, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Investment Fund and BlackRock MuniYield New Jersey Fund, Inc., as of July 31, 2014, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
September 24, 2014

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JULY 31, 2014

55

Disclosure of Investment Advisory Agreements

The Board of Directors or Trustees, as applicable, (each, a “Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of BlackRock Muni New York Intermediate Duration Fund, Inc. (“MNE”), BlackRock MuniYield Arizona Fund, Inc. (“MZA”), BlackRock MuniYield California Fund, Inc. (“MYC”), BlackRock MuniYield Investment Fund (“MYF”) and BlackRock MuniYield New Jersey Fund, Inc., (“MYJ” and together with MNE, MZA, MYC and MYF, each a “Fund,” and, collectively, the “Funds”) met in person on May 9, 2014 (the “May Meeting”) and June 5-6, 2014 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement (each, an “Advisory Agreement,” and, collectively, the “Advisory Agreements”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. At the June Meeting, it was noted that the sub-advisory agreement among the Manager, BlackRock Investment Management, LLC and each Fund would expire effective July 1, 2014. It was also noted that the non-renewal of each Fund’s sub-advisory agreement would not result in any change in the nature or quality of services provided to such Fund, or in the portfolio management team that serves such Fund. The Manager is referred to herein as “BlackRock.”

Activities and Composition of the Board

Each Board consists of eleven individuals, nine of whom are not “interested persons” of such Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established six standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, an Executive Committee, and a Leverage Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee and the Leverage Committee, each of which also has one interested Board Member).

The Advisory Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Advisory Agreements on an annual basis. The Boards have four quarterly meetings per year, each extending over two days, and a fifth one-day meeting to consider specific information surrounding the consideration of renewing the Advisory Agreements. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Funds by BlackRock, its personnel and its affiliates, including, as applicable, investment management, administrative, and shareholder services; oversight of fund service providers; marketing services; risk oversight; compliance and assistance in meeting applicable legal and regulatory requirements.

The Boards, acting directly and through their respective committees, consider at each of their meetings, and from time to time as appropriate, factors that are relevant to their annual consideration of the renewal of the Advisory Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the

 

Boards considered were: (a) investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any overperformance or underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center; (c) Fund operating expenses and how BlackRock allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Funds’ investment objective, policies and restrictions, and meeting new regulatory requirements; (e) the Funds’ compliance with their Code of Ethics and other compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Funds’ valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; (l) BlackRock’s compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRock’s business.

The Boards have engaged in an ongoing strategic review with BlackRock of opportunities to consolidate funds and of BlackRock’s commitment to investment performance. BlackRock also furnished information to the Boards in response to specific questions. These questions covered issues such as: BlackRock’s profitability; investment performance; subadvisory and advisory relationships with other clients (including mutual funds sponsored by third parties); investment professional investment in funds they manage; and management fee levels and breakpoints. The Boards further discussed with BlackRock: BlackRock’s management structure; portfolio turnover; BlackRock’s portfolio manager compensation and performance accountability; marketing support for the Funds; services provided to the Funds by BlackRock affiliates; and BlackRock’s oversight of relationships with third party service providers.

The Board of each Fund considered BlackRock’s efforts during the past year with regard to refinancing outstanding AMPS, as well as ongoing time and resources devoted to other forms of preferred shares and alternative leverage. As of the date of this report, each Fund has redeemed 100% of its outstanding AMPS.

Board Considerations in Approving the Advisory Agreements

The Approval Process: Prior to the May Meeting, the Boards requested and received materials specifically relating to the Advisory Agreements. The Boards are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the May Meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses as compared with a peer group of funds as determined by Lipper (“Expense Peers”) and the investment performance of the Funds as

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Disclosure of Investment Advisory Agreements (continued)