UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06499
Name of Fund: MuniYield California Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniYield California Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/06
Date of reporting period: 11/01/05 - 04/30/06
Item 1 - Report to Stockholders
Semi-Annual Reports
April 30, 2006
MuniYield Arizona Fund, Inc.
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
MuniYield Florida Fund
MuniYield Michigan Insured Fund II, Inc.
MuniYield New York Insured Fund, Inc.
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
These reports, including the financial information herein, are transmitted to
shareholders of MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc.,
MuniYield California Insured Fund, Inc., MuniYield Florida Fund, MuniYield
Michigan Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. for
their information. This is not a prospectus. Past performance results shown in
these reports should not be considered a representation of future performance.
The Funds have leveraged their Common Shares/Stock and intend to remain
leveraged by issuing Preferred Shares/Stock to provide the Common Shareholders/
Common Stock shareholders with potentially higher rates of return. Leverage
creates risks for Common Shareholders/Common Stock shareholders, including the
likelihood of greater volatility of net asset value and market price of shares
of the Common Shares/Stock, and the risk that fluctuations in the short-term
dividend rates of the Preferred Shares/Stock may affect the yield to Common
Shareholders/Common Stock shareholders. Statements and other information herein
are as dated and are subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1)
without charge, upon request, by calling toll-free 1-800-637-3863; (2) at
www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
Web site at http://www.sec.gov. Information about how the Funds vote proxies
relating to securities held in the Funds' portfolios during the most recent
12-month period ended June 30 is available (1) at www.mutualfunds.ml.com; and
(2) on the Securities and Exchange Commission's Web site at http://www.sec.gov.
MuniYield Arizona Fund, Inc.
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
MuniYield Florida Fund
MuniYield Michigan Insured Fund II, Inc.
MuniYield New York Insured Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
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MuniYield Arizona Fund, Inc.
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
MuniYield Florida Fund
MuniYield Michigan Insured Fund II, Inc.
MuniYield New York Insured Fund, Inc.
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with over $1 trillion in assets under management (based on combined
assets under management as of March 31, 2006). The transaction is expected to
close in the third quarter of 2006, at which time the new company will operate
under the BlackRock name. The Funds' Board of Directors/Trustees has approved
a new investment advisory agreement with BlackRock Advisors, Inc. or its
successor ("BlackRock Advisors") on substantially the same terms and for the
same advisory fee as the current investment advisory agreement with the
Investment Advisor. If the agreement is approved by the Funds' shareholders,
BlackRock Advisors is expected to become the Funds' investment adviser upon
the closing of the transaction between Merrill Lynch and BlackRock.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions, the
Funds may at times pay out less than the entire amount of net investment
income earned in any particular month and may at times in any particular month
pay out such accumulated but undistributed income in addition to net
investment income earned in that month. As a result, the dividends paid by the
Funds for any particular month may be more or less than the amount of net
investment income earned by the Funds during such month. The Funds' current
accumulated but undistributed net investment income, if any, is disclosed in
the Statement of Net Assets, which comprises part of the financial information
included in these reports.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts
in which one party agrees to make periodic payments based on the change in
market value of a specified bond, basket of bonds, or index in return for
periodic payments based on a fixed or variable interest rate or the change in
market value of a different bond, basket of bonds or index. Swap agreements
may be used to obtain exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the
party with whom each Fund has entered into a swap will default on its
obligation to pay the Fund and the risk that the Fund will not be able to meet
its obligations to pay the other party to the agreement.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Letter From the President
Dear Shareholder
You may be aware that changes are on the horizon at Merrill Lynch Investment
Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to
combine the firm's investment advisory business, including MLIM, with another
highly regarded investment manager - BlackRock, Inc. ("BlackRock").
We believe this merger of asset management strength will benefit our
investors. MLIM is a leading investment management organization with over
$576 billion in assets under management globally and 2,757 employees in
17 countries. It offers over 100 investment strategies in vehicles ranging
from mutual funds to institutional portfolios. BlackRock is one of the
largest publicly traded investment management firms in the United States
with $463.1 billion in assets under management and 1,839 employees. It
manages assets on behalf of institutional and individual investors worldwide
through a variety of equity, fixed income, liquidity and alternative
investment products.
At the completion of the transaction, which is expected in the third quarter
of this year, the resultant firm will be a top-10 investment manager worldwide
with over $1 trillion in assets under management.* The combined company will
provide a wider selection of high-quality investment solutions across a
range of asset classes and investment styles. MLIM and BlackRock possess
complementary capabilities that together create a well-rounded organization
uniting some of the finest money managers in the industry. At the same time,
the firms share similar values and beliefs - they are focused on delivering
excellence on behalf of clients, and both make investment performance their
single most important mission. In short, the merger only reinforces our
commitment to shareholders.
Most of MLIM's investment products - including mutual funds, separately
managed accounts, annuities and variable insurance funds - eventually will
carry the "BlackRock" name. As a shareholder in one or more MLIM-advised
mutual funds, you will receive a proxy package in the coming weeks in
connection with this transaction. After you receive this information, should
you have any questions or concerns, do not hesitate to contact your financial
advisor.
As always, we thank you for entrusting us with your investment assets, and we
look forward to continuing to serve your investment needs with even greater
strength and scale as the new BlackRock.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Chief Investment Officer
Merrill Lynch Investment Managers
* $1.039 trillion in assets under management as of March 31, 2006.
Data, including assets under management, are as of March 31, 2006.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers
New municipal issuance declined during the six-month period, helping tax-
exempt bonds to outperform their taxable counterparts but also limiting
opportunities to restructure the portfolios.
Describe the recent market environment relative to municipal bonds.
Long-term bond yields rose sharply during the six-month period, with much of
the increase occurring in March and April 2006. Bond prices, which move
opposite of yields, declined. Bond prices were pressured as investors focused
on solid economic growth, both globally and in the United States, and renewed
inflationary pressures deriving from rising commodity prices. First quarter
2006 gross domestic product growth was recently estimated at 4.8%, well above
the 1.7% rate recorded in the fourth quarter of 2005.
The Federal Reserve Board (the Fed) continued to raise short-term interest
rates at each of its meetings during the period, bringing the federal funds
target rate to 4.75% at period-end, and to 5% with another increase on May 10.
In response, the Treasury curve continued to flatten, with short-term interest
rates rising more than longer-term interest rates. Over the past six months,
30-year U.S. Treasury bond yields rose 41 basis points (.41%) to 5.17% and
10-year U.S. Treasury note yields rose 50 basis points to 5.07%, the highest
level since May 2002.
While the municipal yield curve also flattened during the period, the market's
strong technical position provided significant price support. This allowed
municipal bond prices to improve slightly or decline much less than those of
their taxable counterparts. As measured by Municipal Market Data, yields on
AAA-rated issues maturing in 30 years fell six basis points to 4.53% while
yields on AAA-rated issues maturing in 10 years rose 16 basis points to 4.08%.
For the most part, the recent outperformance of the tax-exempt market has been
fostered by a dramatic decline in new bond issuance so far in 2006. In 2005,
more than $408 billion in new long-term tax-exempt bonds was underwritten, a
new annual record and an increase of more than 13% compared to 2004. Over the
past six months, $170 billion in long-term municipal bonds was issued, a
decline of 8.6% versus the same period a year earlier. The record new issuance
in 2005 was largely triggered by a 47% increase in refunding activity as
issuers took advantage of historically low bond yields and a flattening yield
curve to refinance outstanding higher-couponed debt. Year-to-date through
April 2006, refunding issuance declined more than 55% relative to the first
four months of 2005. This decline has led some analysts to reduce their
forecasts for 2006 new issuance from the $350 billion - $370 billion range to
the $300 billion - $325 billion range. Lower annual issuance would further
solidify the tax-exempt market's already positive technical position.
The tax-exempt market has continued to enjoy strong investor demand. As
reported by the Investment Company Institute, long-term municipal bond funds
received net new monies of $5.0 billion in 2005 - a sharp reversal from the
$3.7 billion outflow in 2004. During the first quarter of 2006, tax-exempt
mutual funds received over $9.3 billion, slightly higher than the $8.9 billion
inflow during the same period in 2005. Recent statistics from AMG Data
Services indicate that, thus far in 2006, weekly cash flows into long-term
municipal bond funds averaged over $300 million, a significant improvement
from the weekly average of $65 million in December 2005.
Looking ahead, the fundamentals for the tax-exempt bond market appear
favorable, and continued positive cash flows are anticipated. Given their
attractive yields relative to comparable U.S. Treasury bonds, and the
prospects for reduced issuance in 2006, we believe municipal bonds could enjoy
solid results in the coming months.
MuniYield Arizona Fund, Inc.
Describe conditions in the State of Arizona.
Credit fundamentals for the State of Arizona remain firm, with accelerating
job growth, strong population gains and a state budget surplus that has
lawmakers contemplating what to do with the excess revenue. With the surplus
currently exceeding the legal rainy day limit of 7% of total budget, the
government is debating plans for trimming the excess cash. Proposals have
ranged from increasing government spending to cutting income and/or property
taxes. One potential area of concern on the economic front is the state's
housing market, which has appreciated rapidly but could be affected by higher
interest rates and affordability issues, potentially leading to some economic
volatility down the road.
SEMI-ANNUAL REPORTS APRIL 30, 2006
In March, voters in Phoenix approved the city's most significant general
obligation bond authorization package in almost 20 years. The largest portion
of the nearly $900 million package is dedicated to developing a new campus for
Arizona State University in downtown Phoenix. The city, which is the fifth
largest in the United States and one of the country's fastest-growing
metropolitan areas, expects this commitment to attract more ancillary
development. The remaining bond proposals included money for higher education
and health facilities, public safety, water and sewer upgrades, libraries and
community centers, parks and recreation, and affordable housing.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
Arizona Fund, Inc. had net annualized yields of 5.88% and 5.34%, based on a
period-end per share net asset value of $14.12 and a per share market price of
$15.55, respectively, and $.412 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +1.75%,
based on a change in per share net asset value from $14.39 to $14.12, and
assuming reinvestment of all distributions.
Overall, the municipal market performed fairly well in a period of rising
interest rates. The yield curve continued to flatten, with the long end
rallying slightly while the short end underperformed. Against this backdrop,
Fund performance benefited from our strategy of moving further out on the
curve as opportunities presented themselves. Also contributing to Fund results
was our focus on maintaining an above-average yield and, consistent with that
goal, remaining fully invested.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the American Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We entered the period with a neutral posture as the Fed appeared to be
approaching a pause in its interest rate-hiking campaign. Although both the
Treasury and the municipal yield curves continued to flatten during the past
six months, the move was not nearly as dramatic as we have seen in prior
periods. Notably, the municipal curve retained a positive slope - particularly
relative to the Treasury curve, which actually inverted early in 2006 - and
this contributed to the market's and the Fund's positive performance.
The other important dynamic in the municipal market during the six-month
period was the drop in new issuance, especially fixed rate, longer-term
issuance. This decline in supply supported the performance of the municipal
market, but also meant there were fewer options for restructuring the
portfolio. Supply was particularly lacking in Arizona, where new issuance
declined roughly 13% compared to the same six-month period a year ago.
Although the lack of issuance and issuer diversity prevented us from altering
the portfolio's structure significantly, we were still able to take advantage
of inter-period volatility, using backups in market yields to selectively book
tax losses (that is, taking losses to offset any gains) and swap into other
bonds in instances where we thought it would be beneficial to the Fund. We
also identified some longer-dated, higher-yielding credits that were suitable
for investment. Finally, we sold some of the portfolio's premium-coupon, short-
call bonds into a strong market inquiry. Given that there was an interested
buyer in the market, we were able to sell the bonds at very favorable prices.
Generally speaking, we redeployed the proceeds from the sale into bonds with
maturities in the 25-year range and with coupons of approximately 5%.
We maintained ample exposure to uninsured Puerto Rico bonds despite some
substantial volatility during the period as the commonwealth wrestled with
budget concerns. Puerto Rico issues are tax-exempt in all 50 states, and we
are interested in them for their relatively attractive yields, liquidity and
diversification benefits - a particularly important consideration in a single
state portfolio.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (continued)
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had an average yield of 2.52% for Series A, 2.50% for
Series B and 2.87% for Series C. The Fed raised the short-term interest rate
target 100 basis points during the six-month period, and this continued to
affect the Fund's borrowing costs. We would expect additional increases in the
cost of funds to be more limited as the Fed nears a pause in its monetary
tightening campaign. Despite the interest rate increases during the period,
the tax-exempt yield curve maintained a positive slope, allowing us to borrow
at a lower rate than where we invest. This continued to generate an income
benefit to the holders of Common Stock from the leveraging of Preferred Stock.
However, should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce the
yield on the Fund's Common Stock. At the end of the period, the Fund's
leverage amount, due to AMPS, was 38.77% of total net assets, before the
deduction of Preferred Stock. (For a more complete explanation of the benefits
and risks of leveraging, see page 70 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We remain focused on generating an attractive level of tax-exempt income for
our shareholders. The Fund ended the period fully invested and with an overall
neutral market posture, in keeping with our Municipal Investment Committee's
recommendation. After 16 consecutive interest rate hikes, the Fed may be near
a pause in its monetary tightening program. However, global economies and
certain pockets of the U.S. economy continue to show solid growth, leading us
to believe that it still may be early to become too aggressive. We believe a
neutral posture is prudent in the current environment and should provide for
competitive performance.
On a tactical basis, we have recently started to look at opportunities back
down the yield curve in the 15-year - 20-year area, as opposed to the
previously favored 25-year - 30-year range. We have found that we can move
five years - 10 years down the yield curve without sacrificing a significant
amount of yield. Given the degree of yield-curve flattening that has occurred
over the course of the Fed's interest rate-hiking campaign, we believe this
maturity range could be ready to outperform. As always, we will continue to
monitor the economy, the Fed and the municipal market, and stand ready to
adjust our approach as needed.
MuniYield California Fund, Inc.
Describe conditions in the State of California.
California's financial position continues to improve. Revenues for the first
eight months of fiscal year 2006 were 7.2% higher than the corresponding
period in fiscal year 2005, and estimates for revenue growth in fiscal year
2007 centered on 5.5%. Despite this favorable revenue trend, state spending
has risen at a faster rate, with expenditures 10.2% higher through the first
eight months of fiscal year 2006 than during the same period in the previous
year. In addition, Governor Arnold Schwarzenegger's proposed 2007 budget is
expected to increase by 11.4%. The overall budget retains a structural deficit
of approximately $4.7 billion, which limits further upward rating actions by
the major credit-rating agencies. We would like to see efforts to reduce the
structural imbalance in the revised 2007 budget. Bolstered by an anticipated
$7.5 billion of "unanticipated" tax revenues, the governor's May 2006-2007
budget revision totaled $131.1 billion with spending approximately 8.4% higher
than the previous year. These funds provide an opportunity to increase funding
for K-12 schools, fund the early retirement of economic recovery bonds,
increase reserve levels and fund several one-time projects. The overall budget
remains unbalanced by approximately $3.5 billion, however, sizably smaller
than the $12.5 billion imbalance confronted several years ago. Despite
retaining the structural imbalance, the improved revenue performance provided
a catalyst for the rating agencies to increase the state's long-term general
obligation ratings by Moody's (A2 to A1) and Standard & Poor's (A to A+). Both
rating agencies highlight the structural deficit limiting further rating
improvement to the AA rating category. It should be noted that the governor
and Legislature have reached an agreement on a capital improvement plan that
will call for the placement of general obligation bond measures totaling $37
billion on the November ballot.
As expected, the governor's sizable capital improvement plan, which initially
relied on the issuance of $68 billion in debt obligations, was challenged by
the state legislature and will likely be significantly revised in the coming
months. However, due to the gubernatorial election scheduled for this
November, we do not believe a final revision of this plan will be achieved
during calendar year 2006.
SEMI-ANNUAL REPORTS APRIL 30, 2006
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
California Fund, Inc. had net annualized yields of 4.79% and 5.28%, based on a
period-end per share net asset value of $14.65 and a per share market price of
$13.30, respectively, and $.348 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +2.13%,
based on a change in per share net asset value from $14.73 to $14.65, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +2.49% average
return of its comparable Lipper category of California Municipal Debt Funds
for the six-month period. (Funds in this Lipper category invest primarily in
municipal debt issues exempt from taxation in the State of California.) The
underperformance was partially attributable to the Fund's relatively short
duration. Because bond prices fall as their yields rise, we assumed this
posture in an effort to achieve some price stability for the portfolio in the
face of rising interest rates. In addition, we maintained an underweight
exposure to lower-rated credits. This sector outperformed the broader market
during the period as investors sought out higher yields, and the under-
representation in the portfolio detracted from relative results.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Municipal issuance was uncharacteristically light during the period,
particularly after a record-setting level of new issuance in calendar year
2005. The dearth in supply limited our ability to significantly restructure
the portfolio. Instead, our efforts were concentrated on moving the Fund
closer to a more neutral posture with respect to relative interest rate
exposure. This was consistent with the recommendation of our internal
Municipal Investment Committee.
In an effort to bolster the yield distribution to shareholders, we increased
the portion of Fund assets committed to inverse floating-rate product (a bond
or other type of debt instrument whose coupon rate has an inverse relationship
to short-term interest rates) as appropriately structured securities became
available. We favored this method of yield enhancement over the purchase of
lower-rated credits, where yield spreads versus higher-quality issues of
comparable maturity were already at historically tight levels. The Fund's
exposure to inverse floaters increased from 4% at the start of the period to
8% at the close of the period, still below the Fund's maximum allowable limit
of 15%.
We sought to take advantage of the tight relationship between yields on lower-
rated credits compared to AAA-rated issues by locking in profits in some of
our lower-rated holdings. Specifically, we sold the Fund's exposure to the
securities of Waste Management. These bonds (which are subject to the
alternative minimum tax) were purchased at a spread of 90 basis points above
the AAA scale and were sold during the period at a spread of 45 basis points
above that scale. Similar outperformance was realized in the zero coupon
sector. We sold dollar-denominated zero coupon bonds issued by Napa Valley at
a spread of 40 basis points above the AAA scale. These particular bonds had
been purchased at the end of 2005 at a spread of 80 basis points above
comparable maturity AAA-rated bonds.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields of 3.19% for Series A, 2.76% for
Series B, 2.75% for Series C and 2.82% for Series D. The Fed raised the short-
term interest rate target 100 basis points during the six-month period, and
this continued to affect the Fund's borrowing costs. We would expect
additional increases in the cost of funds to be more limited as the Fed nears
a pause in its monetary tightening campaign. Despite the interest rate
increases during the period, the tax-exempt yield curve maintained a positive
slope, allowing us to borrow at a lower rate than where we invest. This
continued to generate an income benefit to the holders of Common Stock from
the leveraging of Preferred Stock. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leveraging will
decline and, as a result, reduce the yield on the Fund's Common Stock. At the
end of the period, the Fund's leverage amount, due to AMPS, was 35.94% of
total net assets, before the deduction of Preferred Stock. (For a more
complete explanation of the benefits and risks of leveraging, see page 70 of
this report to shareholders.)
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (continued)
How would you characterize the Fund's position at the close of the period?
The Fund ended the period with a neutral duration posture relative to its
California municipal bond fund peers. We remain committed to protecting the
Fund's net asset value and will continue to address the income distribution
potential of the portfolio through the use of inverse floating-rate product.
In fact, the Fund recently has been able to add to its dividend reserves (the
net income earned but not required to be distributed monthly), despite the
aforementioned rise in short-term borrowing costs.
Tight credit spreads discourage us from participating actively in the lower-
quality portion of the market, as we see little relative value from a risk/
reward standpoint at this time. Consequently, we ended the period with a very
high-quality portfolio with more than 84% of the Fund's net assets rated AA or
higher and 78.6% rated AAA.
MuniYield California Insured Fund, Inc.
Describe conditions in the State of California.
California's financial position continues to improve. Revenues for the first
eight months of fiscal year 2006 were 7.2% higher than the corresponding
period in fiscal year 2005, and estimates for revenue growth in fiscal year
2007 centered on 5.5%. Despite this favorable revenue trend, state spending
has risen at a faster rate, with expenditures 10.2% higher through the first
eight months of fiscal year 2006 than during the same period in the previous
year. In addition, Governor Arnold Schwarzenegger's proposed 2007 budget is
expected to increase by 11.4%. The overall budget retains a structural deficit
of approximately $4.7 billion, which limits further upward rating actions by
the major credit-rating agencies. We would like to see efforts to reduce the
structural imbalance in the revised 2007 budget. Bolstered by an anticipated
$7.5 billion of "unanticipated" tax revenues, the governor's May 2006-2007
budget revision totaled $131.1 billion with spending approximately 8.4% higher
than the previous year. These funds provide an opportunity to increase funding
for K-12 schools, fund the early retirement of economic recovery bonds,
increase reserve levels and fund several one-time projects. The overall budget
remains unbalanced by approximately $3.5 billion, however, sizably smaller
than the $12.5 billion imbalance confronted several years ago. Despite
retaining the structural imbalance, the improved revenue performance provided
a catalyst for the rating agencies to increase the state's long-term general
obligation ratings by Moody's (A2 to A1) and Standard & Poor's (A to A+). Both
rating agencies highlight the structural deficit limiting further rating
improvement to the AA rating category. It should be noted that the governor
and Legislature have reached an agreement on a capital improvement plan that
will call for the placement of general obligation bond measures totaling $37
billion on the November ballot.
As expected, the governor's sizable capital improvement plan, which initially
relied on the issuance of $68 billion in debt obligations, was challenged by
the state legislature and will likely be significantly revised in the coming
months. However, due to the gubernatorial election scheduled for this
November, we do not believe a final revision of this plan will be achieved
during calendar year 2006.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
California Insured Fund, Inc. had net annualized yields of 5.82% and 5.83%,
based on a period-end per share net asset value of $14.66 and a per share
market price of $14.64, respectively, and $.423 per share income dividends.
Over the same period, the total investment return on the Fund's Common Stock
was +1.84%, based on a change in per share net asset value from $14.82 to
$14.66, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +2.17% average
return of its comparable Lipper category of California Insured Municipal Debt
Funds for the six-month period. (Funds in this Lipper category invest
primarily in municipal debt issues exempt from taxation in the State of
California and insured as to timely payment.) For some time, our investment
strategy has been focused on achieving a high level of current income for our
shareholders. This has been achieved through maintaining an above-average
coupon accrual, which has allowed the Fund to provide a highly competitive
yield. On a total return basis, the underperformance for the period was
partially attributable to the Fund's relatively short duration. Because bond
prices fall as their yields rise, we assumed this short duration posture in an
effort to achieve some price stability for the portfolio in the face of rising
interest rates. In addition, we maintained an underweight exposure to lower-
rated credits. This sector outperformed the broader market during the period
as investors sought out higher yields, and the under-representation in the
portfolio detracted from relative results.
SEMI-ANNUAL REPORTS APRIL 30, 2006
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Municipal issuance was uncharacteristically light during the period,
particularly after a record-setting level of new issuance in calendar year
2005. The dearth in supply limited our ability to significantly restructure
the portfolio. Instead, our efforts were concentrated on moving the Fund
closer to a more neutral posture with respect to relative interest rate
exposure, consistent with the recommendation of our internal Municipal
Investment Committee. To that end, we purchased a limited amount of longer-
maturity bonds as interest rates increased, effectively extending the Fund's
duration. These purchases were financed through the sale of prerefunded bonds
with shorter maturities.
Our efforts during the period also centered on enhancing the yield
distribution to shareholders. To accomplish this, we increased the portion of
Fund assets committed to inverse floating-rate product (a bond or other type
of debt instrument whose coupon rate has an inverse relationship to short-term
interest rates) as appropriately structured securities became available. The
Fund's exposure to inverse floaters increased from 9% at the start of the
period to 12% at the close of the period, still below the Fund's maximum
allowable limit of 15%. We favored this method of yield enhancement over the
purchase of lower-rated credits. In fact, we intentionally underutilized the
portion of net assets that we are permitted to invest in lower-rated
securities given that yield spreads versus higher-quality issues of comparable
maturity were already at historically tight levels. We prefer a higher-quality
asset mix in such an environment, and ended the period with 94.6% of Fund
assets rated AAA.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields of 2.76% for Series A, 2.71% for
Series B, 2.73% for Series C, 3.14% for Series D, 2.73% for Series E and 2.94%
for Series F. The Fed raised the short-term interest rate target 100 basis
points during the six-month period, and this continued to affect the Fund's
borrowing costs. We would expect additional increases in the cost of funds to
be more limited as the Fed nears a pause in its monetary tightening campaign.
Despite the interest rate increases during the period, the tax-exempt yield
curve maintained a positive slope, allowing us to borrow at a lower rate than
where we invest. This continued to generate an income benefit to the holders
of Common Stock from the leveraging of Preferred Stock. However, should the
spread between short-term and long-term interest rates narrow, the benefits of
leveraging will decline and, as a result, reduce the yield of the Fund's
Common Stock. At the end of the period, the Fund's leverage amount, due to
AMPS, was 35.32% of total net assets, before the deduction of Preferred Stock.
(For a more complete explanation of the benefits and risks of leveraging, see
page 70 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
The Fund ended the period with a neutral duration posture relative to its
California insured municipal bond fund peers. We remain committed to
protecting the Fund's net asset value and will continue to address the income
distribution potential of the portfolio through the use of inverse floating-
rate product. Tight credit spreads discourage us from participating actively
in the lower-quality portion of the market, as we see little relative value
from a risk/ reward standpoint at this time. Consequently, we ended the period
with a very high-quality portfolio. We are focused on enhancing the Fund's
yield through investment in AAA-rated leveraged product, effectively seizing
the opportunity presented by the relatively steep tax-exempt yield curve. We
find this strategy to be more prudent than purchasing lower-rated credits at
current unattractive spreads.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (continued)
MuniYield Florida Fund
Describe conditions in the State of Florida.
Florida's economy has outperformed that of both the nation and other southern
states, and appears likely to continue this trend in the foreseeable future.
The state's mix of solid demographics and increasing job growth among
diversified industries is expected to continue to encourage migration into the
state. Although national economic trends have put pressure on Florida, we
believe the state is well positioned given its record of proactive management
and financial flexibility.
Florida's enacted fiscal year 2005-2006 budget is $64.7 billion, an increase
of 12% from the prior year. The budget reflects a combination of spending
constraints, with spending below anticipated personal income growth, and
increased revenue growth. Of the increased revenue, not all is expected to be
permanent, as some stems primarily from the reconstruction and replacement of
property destroyed by hurricanes and, therefore, is not recurring.
Fiscal discipline has afforded the state the opportunity to provide tax relief
in the form of tax-free shopping days, reduced sales tax on equipment, tax
credits and a phaseout of the intangible tax. Three areas of the budget
account for 93% of the total expenditures - education at 52%, health and human
services at 26% and public safety at 15%. Revenues for the first four months
of the fiscal year were $602 million, 14% higher than the same period in the
prior fiscal year.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Shares of MuniYield
Florida Fund had net annualized yields of 5.62% and 5.99%, based on a period-
end per share net asset value of $14.79 and a per share market price of
$13.86, respectively, and $.412 per share income dividends. Over the same
period, the total investment return on the Fund's Common Shares was +2.11%,
based on a change in per share net asset value from $14.91 to $14.79, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, was generally competitive
with the +2.16% average return of the Lipper Florida Municipal Debt Funds
category for the six-month period. (Funds in this Lipper category limit their
investment to those securities exempt from taxation in the State of Florida.)
Performance benefited from our yield-curve strategy, specifically our emphasis
on longer-dated issues, which continued to outperform as the curve flattened.
Also contributing positively was our exposure to higher-yielding uninsured
credits, which outperformed the broader market as investors searched for yield
in the low interest rate environment. Our uninsured credits in the airline
sector performed particularly well. Of final note, the portfolio held some
bonds that had been advance refunded, which leads to strong price appreciation
for these credits and has benefited the Fund's total return.
These positives were offset somewhat by our exposure, in the form of
prerefunded bonds, to the intermediate part of the yield curve. This sector
continued to underperform as the curve flattened, although we retained many of
these bonds given their high acquisition yields and corresponding contribution
to the Fund's income stream. In addition, the Fund is precluded from investing
in non-investment grade municipal credits, which was somewhat of a
disadvantage relative to our Lipper peers as the lowest-quality bonds
outperformed.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Shares (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Shares can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not alter our strategy or make meaningful changes to the portfolio's
composition during the six-month period. We continued to focus on increasing
the income provided to shareholders and muting the Fund's net asset value
volatility. To that end, we remained fully invested throughout the period in
order to augment yield.
In making new purchases, we generally focused on premium-coupon bonds in the
20-year - 25-year maturity range whenever they became available, although we
did begin to see value in the 15-year area of the curve and continue to
explore opportunities there. Given the extent of the curve flattening, spreads
are appearing wider now in the 20-year sector of the curve, so we are able to
capture some of the most attractive yields on the curve without having to
extend to the longest maturities.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Issuance of Florida municipal bonds increased less than 3% during the period
versus the same six months a year ago. However, new issuance in the latter
three months was down 32% compared to the same three months in 2005. The
reduction in supply has meant few opportunities to restructure the portfolio.
For the most part, we are seeing supply concentrated in the 15-year - 20-year
area, most of these being insured issues with 4% to 4.5% coupons. We remain
committed to structuring bonds with 5% to 5.25% coupons, although the cost for
new issues with these characteristics has been prohibitive.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Shares (AMPS) had average yields of 3.01% for Series A, 2.94% for
Series B and 3.00% for Series C. The Fed raised the short-term interest rate
target 100 basis points during the six-month period, and this continued to
affect the Fund's borrowing costs. We would expect additional increases in the
cost of funds to be more limited as the Fed nears a pause in its monetary
tightening campaign. Despite the interest rate increases during the period,
the tax-exempt yield curve maintained a positive slope, allowing us to borrow
at a lower rate than where we invest. This continued to generate an income
benefit to the holders of Common Shares from the leveraging of Preferred
Shares. However, should the spread between short-term and long-term interest
rates narrow, the benefits of leveraging will decline and, as a result, reduce
the yield on the Fund's Common Shares. At the end of the period, the Fund's
leverage amount, due to AMPS, was 35.43% of total net assets, before the
deduction of Preferred Shares. (For a more complete explanation of the
benefits and risks of leveraging, see page 70 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We would characterize the Fund's position as fairly neutral in terms of
interest rate risk. At period-end, we were looking to increase the portfolio's
exposure to bonds in the 10-year - 20-year maturity range, where we see value
emerging. Given the degree of yield-curve flattening that has occurred over
the course of the Fed's interest rate-hiking campaign, we believe this
maturity range could be ready to outperform.
We remain fully invested, consistent with our efforts to augment shareholder
income, and intend to use periods of volatility to pursue higher-coupon bonds
whenever they are attractively priced.
MuniYield Michigan Insured Fund II, Inc.
Describe conditions in the State of Michigan.
The State of Michigan maintained credit ratings of Aa2, AA and AA with stable
outlooks from Moody's, Standard & Poor's and Fitch, respectively. All three
agencies downgraded the state in late 2004 or the first quarter of 2005,
citing the troubled automotive sector and weak revenue estimates. The
performance of the state's economy, which continues to lag the national
recovery as well as that of the Great Lakes region, is the key to future
ratings action. Given the possibilities of more job losses in the automotive
sector and a fiscal crisis in Detroit, at least one of the rating agencies
could downgrade Michigan in 2006 or place a negative outlook on the state's
credit.
The state recorded its fifth consecutive year of increasing unemployment in
2005, although the rate of annual job losses has declined each year since
2001. While the state has successfully managed its budget through conservative
revenue estimates and large spending cuts, the job losses have weighed on
revenue collections and could indicate longer-term economic problems for the
state. As a short-term measure to avoid further spending cuts, the governor
recently vetoed a repeal of the $1 billion business tax. On the upside,
Michigan's debt ratios are quite low for a populous state and indicate
relative flexibility in the ability to respond to economic downturns. The
state's pension system is well funded.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
Michigan Insured Fund II, Inc. had net annualized yields of 5.64% and 5.75%,
based on a period-end per share net asset value of $14.31 and a per share
market price of $14.03, respectively, and $.400 per share income dividends.
Over the same period, the total investment return on the Fund's Common Stock
was +1.26%, based on a change in per share net asset value from $14.54 to
$14.31, and assuming reinvestment of all distributions.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (continued)
The Fund's total return, based on net asset value, lagged the +1.94% average
return of the Lipper Michigan Municipal Debt Funds category for the six-month
period. (Funds in this Lipper category limit their investment to securities
exempt from taxation in Michigan or a city in Michigan.) The Fund's above-
average credit quality profile, as an insured fund, continued to negatively
impact total return performance. Lower-rated issues continued to be among the
best-performing assets during the period. Recent performance also has been
impacted by the Fund's considerable exposure to the intermediate sector of the
municipal bond yield curve, which has significantly underperformed as the
curve has flattened. Nevertheless, we retained many of these bonds in the
portfolio, as they provide a meaningful income benefit and their sale could
result in material taxable gains as well as declines in the Fund's dividend
stream.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Despite the underperformance of the intermediate sector of the yield curve,
we chose not to take any drastic action with respect to our exposure to this
sector. We believe the current interest rate tightening cycle will end by
mid-2006, causing the municipal yield curve to again steepen somewhat and
potentially leading to strong performance in the intermediate maturity range.
This would allow the Fund's exposure to this portion of the curve to again be
a positive contributor to overall performance, as well as a source of
significant incremental income.
Portfolio activity in recent months largely involved the execution of bond
swaps that allowed us to add to the Fund's income stream. We have continued to
maintain the Fund's high credit quality, as the incremental yield gained from
buying lower-rated investment grade issues has remained historically narrow.
At April 30, 2006, approximately 86.7% of the Fund's assets was rated AAA.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields of 2.95% for Series A, 2.87% for
Series B and 2.99% for Series C. The Fed raised the short-term interest rate
target 100 basis points during the six-month period, and this continued to
affect the Fund's borrowing costs. We would expect additional increases in the
cost of funds to be more limited as the Fed nears a pause in its monetary
tightening campaign. Despite the interest rate increases during the period,
the tax-exempt yield curve maintained a positive slope, allowing us to borrow
at a lower rate than where we invest. This continued to generate an income
benefit to the holders of Common Stock from the leveraging of Preferred Stock.
However should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce the
yield on the Fund's Common Stock. At the end of the period, the Fund's
leverage amount, due to AMPS, was 36.44% of total net assets, before the
deduction of Preferred Stock. (For a more complete explanation of the benefits
and risks of leveraging, see page 70 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We recently adopted a more positive stance on the municipal market. After 16
consecutive interest rate hikes, the Fed may be nearing a pause in its
monetary tightening campaign. We would expect the end of Fed tightening,
combined with modest economic growth and muted inflationary pressures, to
promote a gradual improvement in tax-exempt bond prices later this year,
underpinning our more constructive outlook. Conversely, we would view
accelerated economic activity and/or rising wage pressures as signals to
return to a more defensive positioning.
Overall, we intend to maintain the Fund's fully invested stance as we seek to
enhance shareholder income. Portfolio activity in the months ahead is likely
to be driven by our efforts to maintain the Fund's already attractive
distribution yield.
SEMI-ANNUAL REPORTS APRIL 30, 2006
MuniYield New York Insured Fund, Inc.
Describe conditions in the State of New York.
In December, credit-rating agency Moody's upgraded New York's rating to Aa3,
the state's highest rating from Moody's since 1975. Standard and Poor's and
Fitch maintained ratings of AA and AA-, respectively, and all three agencies
assign a stable outlook to the state's ratings. The New York economy continues
to improve and revenue collections are increasing. State tax collections
remain largely dependent on the performance of the financial sector, but tax
receipts over the past few years have been strong.
New York's 2006 fiscal year ended on March 31, and preliminary operating
results indicate a $2 billion surplus and a $945 million rainy day fund. The
2006 budget had closed an estimated $4 billion deficit. Crafting balanced
budgets beyond fiscal year 2006 will present a challenge given political
resistance to additional tax hikes and cuts in popular programs, as well as
pressure from local governments for pension and Medicaid relief, and new
education spending. Governor Pataki's $111 billion budget proposal for fiscal
year 2007 (which began April 1) includes an estimated $840 million in tax cuts
and applies the $2 billion surplus from 2006 toward out-year gaps. The
Legislature has not yet approved the 2007 budget, which currently does not
include any money for compliance with a court order on school funding.
Preliminary February 2006 employment numbers reflect a 1% increase from
February 2005 levels. New York ranks fifth highest among all states in per
capita income. Economic growth is disproportionately stronger in downstate New
York, while the upstate economy remains lackluster.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
New York Insured Fund, Inc. had net annualized yields of 5.68% and 5.86%,
based on a period-end per share net asset value of $14.02 and a per share
market price of $13.60, respectively, and $.395 per share income dividends.
Over the same period, the total investment return on the Fund's Common Stock
was +1.19%, based on a change in per share net asset value from $14.26 to
$14.02, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +1.68% average
return of the Lipper New York Insured Municipal Debt Funds category for the
six-month period. (Funds in this Lipper category invest primarily in
securities exempt from taxation in New York and insured as to timely payment.)
The portfolio tended to be slightly longer durationthan its Lipper peers.
Because the municipal yield curve has maintained its positive slope, the Fund
has looked to enhance yield by favoring the long end of curve, where we also
perceived greater liquidity and long-term performance potential. Our focus on
longer-dated bonds was a positive as they outperformed shorter-term issues;
however, the longer overall duration made the portfolio more susceptible to
interest rate risk as rates rose late in the period. Also detracting from Fund
results somewhat were a number of bond calls, including some housing bonds and
higher-coupon, lower-rated issues that had been booked in the portfolio at
attractive yields. Nevertheless, the Fund continued to earn an above-average
distribution rate, allowing us to continue providing shareholders with an
attractive level of tax-exempt income.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock can vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
The two resounding themes during the period centered on tax-exempt bonds'
outperformance of their taxable counterparts and, contributing to the strong
performance, the limited new issuance in the municipal market. In New York,
new issuance was down 21% versus the same six-month period a year ago. The
reduced supply, combined with strong demand, meant heightened prices and
strong relative performance on the part of municipal bonds, but it also
limited our ability to restructure and diversify the portfolio to the extent
that we would have liked, as there were few new names from which to choose.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (concluded)
Nevertheless, we were able to add two new issues to the portfolio. The first
was bonds of a Puerto Rico convention center, a newcomer to the market with
credit enhancement from insurer CIFG. This purchase allowed us to diversify
the portfolio somewhat, an especially important consideration in a single
state fund, and afforded us the valuable liquidity inherent in Puerto Rico
debt. The fact that the bonds came with insurance was particularly beneficial,
as we had been looking to reduce exposure to uninsured Puerto Rico credits in
favor of insured bonds. Overall, we reduced exposure to BBB-rated Puerto Rico
paper from 5.1% of net assets to 1% and increased our AAA exposure from 87.7%
to 89.7%, thereby maintaining our desired allocation to the Puerto Rico
market. The other new addition to the portfolio was bonds issued for the
rehabilitation and expansion of the Jacob Javitz Convention Center in New York
City. Overall, the new issues we purchased were 30-year bonds and had both 5%
and 4.5% coupons.
Also during the period, we sought to execute some tax loss swaps when yields
backed up and attractive opportunities presented themselves. This was somewhat
of a challenge given the limited supply. Overall, we aimed to balance our
desire to maintain an attractive yield with our goal of enhancing the
portfolio's total return potential.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields as follows: 2.98% for Series A,
2.74% for Series B, 2.89% for Series C, 2.73% for Series D, 3.14% for Series E
and 2.92% for Series F. The Fed raised the short-term interest rate target
another 100 basis points during the six-month period, and this continued to
affect the Fund's borrowing costs. We would expect additional increases in the
cost of funds to be more limited as the Fed nears a pause in its monetary
tightening campaign. Despite the interest rate increases during the period,
the tax-exempt yield curve maintained a positive slope, allowing us to borrow
at a lower interest rate than where we invest. This continued to generate an
income benefit to the holders of Common Stock from the leveraging of Preferred
Stock. However, should the spread between short-term and long-term interest
rates narrow, the benefits of leveraging will decline and, as a result, reduce
the yield on the Fund's Common Stock. At the end of the period, the Fund's
leverage amount, due to AMPS, was 35.46% of total net assets, before the
deduction of Preferred Stock. (For a more complete explanation of the benefits
and risks of leveraging, see page 70 of this report to shareholders.)
How would you characterize the portfolio's position at the close of the
period?
In terms of duration (that is, sensitivity to interest rate risk), the Fund
ended the period neutral to slightly long relative to its New York insured
peers. With the most recent interest rate hike on May 10, 2006, which brought
the federal funds rate to 5%, the central bank appears prepared to shift gears
from its "measured" program of interest rate hikes to a more data dependant
policy. Fed Chairman Ben Bernanke, in an effort to avoid overtightening, has
indicated some willingness to observe the economy's reaction to the two-year
interest rate-hiking campaign and refine monetary policy later as conditions
dictate.
With that, we would expect to see value restored in the intermediate part of
the curve, which had suffered the most as the yield curve flattened during the
monetary tightening campaign, and a more moderate rally in the longer end.
Based on this scenario, we are targeting the intermediate to long maturity
range, essentially 20 years - 30 years. We expect new municipal supply to
remain fairly muted, creating a positive technical environment that should
allow municipal bonds to continue outperforming Treasury issues in the months
ahead. We continue to look for opportunities to diversify the Fund while also
seeking to balance yield and total return potential in the portfolio.
Michael A. Kalinoski, CFA
Vice President and Portfolio Manager
MuniYield Arizona Fund, Inc.
Walter C. O'Connor, CFA
Vice President and Portfolio Manager
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
Robert D. Sneeden
Vice President and Portfolio Manager
MuniYield Florida Fund
Fred K. Stuebe
Vice President and Portfolio Manager
MuniYield Michigan Insured Fund II, Inc.
Timothy T. Browse, CFA
Vice President and Portfolio Manager
MuniYield New York Insured Fund, Inc.
May 23, 2006
SEMI-ANNUAL REPORTS APRIL 30, 2006
Portfolio Information
Quality Profiles as of April 30, 2006
Percent of
MuniYield Arizona Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 52.3%
AA/Aa 7.8
A/A 13.6
BBB/Baa 20.8
BB/Ba 2.0
NR (Not Rated) 3.5
Other* 0.0**
* Includes portfolio holdings in short-term investments.
** Amount is less than 0.1%.
Percent of
MuniYield California Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 75.1%
AA/Aa 5.5
A/A 10.5
BBB/Baa 4.5
NR (Not Rated) 1.1
Other* 3.3
* Includes portfolio holdings in short-term investments.
Percent of
MuniYield California Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 94.6%
AA/Aa 1.4
A/A 2.0
Other* 2.0
* Includes portfolio holdings in variable rate demand notes and
short-term investments.
Percent of
MuniYield Florida Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 77.1%
AA/Aa 2.5
A/A 6.7
BBB/Baa 9.7
NR (Not Rated) 2.3
Other* 1.7
* Includes portfolio holdings in variable rate demand notes and
short-term investments.
Percent of
MuniYield Michigan Insured Fund II, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 86.7%
AA/Aa 4.6
A/A 4.9
BBB/Baa 3.1
Other* 0.7
* Includes portfolio holdings in short-term investments.
Percent of
MuniYield New York Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 89.7%
AA/Aa 1.4
A/A 5.9
BBB/Baa 1.0
Other* 2.0
* Includes portfolio holdings in variable rate demand notes and
short-term investments.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield Arizona Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Arizona--140.4%
$ 1,000 Arizona Educational Loan Marketing Corporation,
Educational Loan Revenue Refunding Bonds, AMT,
Junior Sub-Series, 6.30% due 12/01/2008 $ 1,016
1,800 Arizona Health Facilities Authority, Hospital System
Revenue Bonds (Phoenix Children's Hospital),
Series A, 6.125% due 11/15/2022 1,870
1,785 Arizona Health Facilities Authority Revenue Bonds
(Catholic Healthcare West), Series A, 6.625%
due 7/01/2020 1,973
4,335 Arizona State University Revenue Bonds, DRIVERS,
Series 270, 6.863% due 7/01/2021 (e)(k) 5,099
Arizona Student Loan Acquisition Authority,
Student Loan Revenue Refunding Bonds, AMT:
3,285 Junior Subordinated Series B-1, 6.15%
due 5/01/2029 3,484
1,000 Senior Series A-1, 5.90% due 5/01/2024 1,053
Arizona Tourism and Sports Authority, Tax
Revenue Bonds:
1,000 (Baseball Training Facilities Project), 5%
due 7/01/2016 1,012
2,000 (Multi-Purpose Stadium Facility), Series A,
5.375% due 7/01/2023 (b) 2,132
1,000 Cottonwood, Arizona, Senior Lien Water System
Revenue Bonds, 5% due 7/01/2035 (m) 1,026
Downtown Phoenix Hotel Corporation, Arizona,
Revenue Bonds (e):
1,250 Senior Series A, 5.25% due 7/01/2025 1,330
1,500 Senior Series A, 5% due 7/01/2036 1,535
1,500 Sub-Series B, 5% due 7/01/2036 1,535
3,000 Greater Arizona Development Authority,
Infrastructure Revenue Bonds, Series B, 5%
due 8/01/2030 (b) 3,096
Maricopa County, Arizona, Hospital Revenue
Refunding Bonds (Sun Health Corporation):
1,670 6.125% due 4/01/2007 (i) 1,738
735 6.125% due 4/01/2018 759
1,000 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 996
(In Thousands)
Face
Amount Municipal Bonds Value
Arizona (continued)
$ 1,000 Maricopa County, Arizona, IDA, Health Facilities
Revenue Bonds (Mayo Clinic), 5% due 11/15/2036 $ 1,021
2,400 Maricopa County, Arizona, IDA, Hospital Facility
Revenue Refunding Bonds (Samaritan Health
Services), Series A, 7% due 12/01/2016 (b)(d) 2,898
2,000 Maricopa County, Arizona, IDA, M/F Housing
Revenue Bonds (Place Five and Greenery
Apartments), Series A, 6.625% due 1/01/2027 (d) 2,137
1,000 Maricopa County, Arizona, Peoria Unified School
District Number 11, GO, Second Series, 5%
due 7/01/2025 (e) 1,042
1,485 Maricopa County, Arizona, Pollution Control
Corporation, PCR, Refunding (Public Service
Company of New Mexico Project), Series A, 6.30%
due 12/01/2026 1,542
2,250 Maricopa County, Arizona, Public Finance
Corporation, Lease Revenue Bonds, RIB, Series 511X,
6.93% due 7/01/2014 (a)(k) 2,584
1,825 Maricopa County, Arizona, Scottsdale Unified School
District Number 48, GO, 6.60% due 7/01/2012 2,095
500 Maricopa County, Arizona, Tempe Elementary
Unified School District Number 3, GO, Refunding,
7.50% due 7/01/2010 (e) 570
1,000 Maricopa County, Arizona, Unified School District
Number 090, School Improvement, GO (Saddle
Mountain), Series A, 5% due 7/01/2014 1,020
1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health
Systems), Series A, 5.625% due 1/01/2010 (b)(i) 1,070
1,000 Nogales Arizona Municipal Development Authority,
Inc. Revenue Bonds, 5% due 6/01/2030 (a) 1,026
4,500 Northern Arizona University System Revenue Bonds,
5.50% due 6/01/2034 (e) 4,856
Phoenix, Arizona, Civic Improvement Corporation,
Excise Tax Revenue Bonds (Civic Plaza Expansion
Project), Sub-Series A (e):
2,500 5% due 7/01/2030 2,583
2,000 5% due 7/01/2035 2,059
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of
Investments, we have abbreviated the names of many of the securities
according to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
ROLS Reset Option Long Securities
S/F Single-Family
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield Arizona Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Arizona (continued)
Phoenix, Arizona, Civic Improvement Corporation,
Water System Revenue Refunding Bonds,
Junior Lien:
$ 2,500 5.50% due 7/01/2020 (e) $ 2,683
2,000 5% due 7/01/2029 (b) 2,070
Pima County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project), Series C:
750 6.70% due 7/01/2021 789
1,000 6.75% due 7/01/2031 1,042
1,000 Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project II), Series A, 6.75% due 7/01/2021 1,054
1,000 Pima County, Arizona, IDA, Revenue Refunding
Bonds (Health Partners), Series A, 5.625%
due 4/01/2014 (b) 1,034
280 Pima County, Arizona, IDA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series A-1, 6.20%
due 11/01/2030 (f)(g) 291
3,050 Pima County, Arizona, Unified School District
Number 1, Tucson, GO, Refunding, 7.50%
due 7/01/2009 (e) 3,385
Pinal County, Arizona, COP:
1,250 5% due 12/01/2026 1,268
1,250 5% due 12/01/2029 1,259
1,000 Pinal County, Arizona, IDA, Correctional Facilities
Contract Revenue Bonds (Florence West Prison
Project), Series A, 5.25% due 10/01/2023 (c) 1,034
2,250 Scottsdale, Arizona, IDA, Hospital Revenue
Bonds (Scottsdale Healthcare), 5.80%
due 12/01/2031 2,379
Scottsdale, Arizona, Municipal Property
Corporation, Excise Tax Revenue Bonds:
1,000 5% due 7/01/2029 1,037
1,500 5% due 7/01/2030 1,557
1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds
(Navapache Regional Medical Center), 5%
due 12/01/2035 (j) 1,211
1,500 South Campus Group LLC, Arizona Student
Housing Revenue Bonds (Arizona State University
South Campus Project), Series 2003, 5.625%
due 9/01/2035 (b) 1,625
425 Tucson and Pima County, Arizona, IDA, S/F
Mortgage Revenue Refunding Bonds
(Mortgage-Backed Securities Program), AMT,
Series A-1, 6% due 7/01/2021 (f)(g) 429
(In Thousands)
Face
Amount Municipal Bonds Value
Arizona (concluded)
$ 1,000 Tucson, Arizona, IDA, Senior Living Facilities
Revenue Bonds (Christian Care Tucson Inc.
Project), Series A, 6.125% due 7/01/2024 (j) $ 1,078
1,105 University of Arizona, COP, Refunding, Series A,
5.125% due 6/01/2029 (a) 1,144
2,000 University of Arizona, COP, Series B, 5%
due 6/01/2028 (a) 2,047
Vistancia Community Facilities District,
Arizona, GO:
1,275 6.75% due 7/15/2022 1,358
750 5.75% due 7/15/2024 756
500 Watson Road Community Facilities District,
Arizona, Special Assessment Revenue Bonds, 6%
due 7/01/2030 496
2,000 Yavapai County, Arizona, IDA, Hospital Facility
Revenue Bonds (Yavapai Regional Medical Center),
Series A, 6% due 8/01/2033 2,114
Guam--1.6%
1,000 Guam Government Waterworks Authority, Water
and Wastewater System, Revenue Refunding Bonds,
5.875% due 7/01/2035 1,045
Puerto Rico--19.9%
500 Puerto Rico Commonwealth, GO, Refunding, RITR,
Class R, Series 3, 7.409% due 7/01/2016 (b)(k) 576
1,700 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series G, 5% due 7/01/2033 1,716
2,000 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5.125% due 7/01/2031 2,026
Puerto Rico Electric Power Authority, Power
Revenue Bonds:
1,000 Series II, 5.25% due 7/01/2031 1,035
1,500 Series NN, 5.125% due 7/01/2029 1,541
1,000 Series NN, 5% due 7/01/2032 (b) 1,032
1,500 Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities
Revenue Bonds (Cogeneration Facility--AES
Puerto Rico Project), AMT, 6.625%
due 6/01/2026 1,638
2,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5.25%
due 7/01/2033 2,075
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield Arizona Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
$ 1,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 $ 1,048
Total Municipal Bonds
(Cost--$100,014)--161.9% 103,029
(In Thousands)
Shares
Held Short-Term Securities Value
1 CMA Arizona Municipal Money Fund,
3.07% (h)(l) $ 1
Total Short-Term Securities (Cost--$1)--0.0% 1
Total Investments (Cost--$100,015*)--161.9% 103,030
Other Assets Less Liabilities--1.5% 939
Preferred Stock, at Redemption Value--(63.4%) (40,321)
---------
Net Assets Applicable to Common Stock--100.0% $ 63,648
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 100,024
===============
Gross unrealized appreciation $ 3,324
Gross unrealized depreciation (318)
---------------
Net unrealized appreciation $ 3,006
===============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) ACA Insured.
(d) Escrowed to maturity.
(e) FGIC Insured.
(f) FHLMC Collateralized.
(g) FNMA/GNMA Collateralized.
(h) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Arizona Municipal Money Fund (1,606) $11
(i) Prerefunded.
(j) Radian Insured.
(k) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(l) Represents the current yield as of 4/30/2006.
(m) XL Capital Insured.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield California Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California--150.6%
$ 1,730 ABAG Finance Authority for Nonprofit Corporations,
California, Revenue Refunding Bonds (Redwood
Senior Homes and Services), 6% due 11/15/2022 $ 1,852
4,500 Anaheim, California, Public Financing Authority
Revenue Bonds, RIB, Series 1304, 5.97%
due 10/01/2031 (d)(h) 4,722
3,975 Antioch Area Public Facilities Financing Agency,
California, Special Tax (Community Facilities District
Number 1989-1), 5.70% due 8/01/2009 (a)(f) 4,262
2,820 Arcata, California, Joint Powers Financing
Authority, Tax Allocation Revenue Refunding Bonds
(Community Development Project Loan), Series A,
6% due 8/01/2023 (a) 2,821
2,500 Bakersfield, California, COP, Refunding
(Convention Center Expansion Project), 5.80%
due 4/01/2007 (b)(f) 2,574
3,500 Bay Area Toll Authority, California, Toll Bridge
Revenue Refunding Bonds (San Francisco Bay Area),
Series F, 5% due 4/01/2031 3,619
California Health Facilities Financing Authority
Revenue Bonds:
2,075 (California--Nevada Methodist Homes), 5%
due 7/01/2036 2,100
5,000 (Kaiser Permanente), RIB, Series 26, 6.89%
due 6/01/2022 (d)(h) 5,525
1,490 California Health Facilities Financing Authority,
Revenue Refunding Bonds (Pomona Valley Hospital
Medical Center), Series A, 5.625% due 7/01/2019 (b) 1,549
4,990 California Infrastructure and Economic Development
Bank Revenue Bonds (J. David Gladstone Institute
Project), 5.50% due 10/01/2022 5,237
3,000 California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Bonds (Waste Management
Inc. Project), AMT, Series A-2, 5.40% due 4/01/2025 3,095
6,435 California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Refunding Bonds (Waste
Management Inc. Project), AMT, Series A, 5%
due 1/01/2022 6,435
60 California Rural Home Mortgage Finance Authority,
S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT, Series B, 6.15%
due 6/01/2020 (c) 60
5,000 California State Department of Water Resources
Revenue Bonds (Central Valley Project), 5.25%
due 7/01/2022 5,165
California State, GO, Refunding:
3,790 5.75% due 5/01/2010 (f) 4,097
2,000 5.25% due 2/01/2030 2,068
4,210 5.75% due 5/01/2030 4,490
2,785 (Veterans), AMT, Series BJ, 5.70% due 12/01/2032 2,848
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
California State Public Works Board, Lease Revenue
Bonds:
$ 2,000 (California State University), Series C, 5.40%
due 10/01/2022 (b) $ 2,080
5,000 (Department of Corrections), Series C, 5.50%
due 6/01/2023 5,368
6,645 (Department of Health Services), Series A, 5.75%
due 11/01/2009 (b)(f) 7,156
17,000 (Various Community College Projects), Series A,
5.625% due 3/01/2016 (a) 17,365
California State, Various Purpose, GO:
4,730 5.50% due 4/01/2030 5,117
6,850 5.50% due 11/01/2033 7,370
5,250 California Statewide Communities Development
Authority, COP (John Muir/Mount Diablo Health
System), 5.125% due 8/15/2022 (b) 5,429
California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A:
3,270 6% due 10/01/2023 3,551
3,000 5.50% due 10/01/2033 3,104
2,380 California Statewide Communities Development
Authority, Water Revenue Bonds (Pooled Financing
Program), Series C, 5.25% due 10/01/2028 (d) 2,507
2,000 Chino Basin, California, Regional Financing Authority
Revenue Bonds (Inland Empire Utility Agency Sewer
Project), 5.75% due 11/01/2009 (b)(f) 2,157
5,105 Contra Costa, California, Community College District,
GO, ROLS, Series II-R-548X, 8% due 8/01/2030 (d)(h) 5,424
2,705 Contra Costa County, California, Public Financing
Lease Revenue Refunding Bonds (Various Capital
Facilities), Series A, 5.30% due 8/01/2020 (b) 2,810
4,780 Corona, California, Department of Water and Power,
COP, 5% due 9/01/2035 (b) 4,902
3,750 Cucamonga, California, County Water District, COP,
5.125% due 9/01/2035 (e) 3,874
2,500 Davis, California, Joint Unified School District,
Community Facilities District, Special Tax Refunding
Bonds, Number 1, 5.50% due 8/15/2021 (b) 2,538
2,120 Eastern Municipal Water District, California, Water
and Sewer Revenue Bonds, COP, Series A, 5%
due 7/01/2032 (b) 2,180
4,000 Fremont, California, Unified School District, Alameda
County, GO (Election of 2002), Series B, 5%
due 8/01/2030 (d) 4,138
4,650 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-4, 7.80% due 6/01/2042 5,514
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield California Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 5,595 Grossmont-Cuyamaca Community College District,
California, GO (Election of 2002), Series B, 5%
due 8/01/2029 (e) $ 5,787
5,025 Indio, California, Water Authority, Water Enterprise
Revenue Bonds, 5.125% due 4/01/2030 (a) 5,266
Industry, California, Urban Development
Agency, Tax Allocation Refunding Bonds
(Civic-Recreational-Industrial Redevelopment
Project Number 1) (b):
5,000 5.50% due 5/01/2020 5,162
14,915 5.50% due 5/01/2021 15,409
3,010 La Quinta, California, Financing Authority, Local
Agency Tax Allocation and Revenue Refunding Bonds,
ROLS, Series II-R-412X, 6.332% due 9/01/2034 (a)(h) 3,226
2,000 Los Angeles, California, COP (Sonnenblick Del Rio
West Los Angeles), 6.20% due 11/01/2031 (a) 2,204
Los Angeles, California, Harbor Department Revenue
Bonds AMT:
4,000 RITR, Series RI-7, 8.255% due 11/01/2026 (b)(h) 4,177
2,000 Series B, 6% due 8/01/2015 2,031
6,000 Series B, 5.375% due 11/01/2023 6,096
7,000 Los Angeles, California, Wastewater System Revenue
Bonds, Series A, 5% due 6/01/2008 (e)(f) 7,265
4,500 Los Angeles, California, Wastewater System,
Revenue Refunding Bonds, Subordinate Series A, 5%
due 6/01/2027 (b) 4,632
3,780 Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding
Bonds, Proposition A, First Tier Senior Series A, 5%
due 7/01/2027 (a) 3,918
5,000 Los Angeles County, California, Public Works
Financing Authority, Lease Revenue Bonds (Multiple
Capital Facilities Project VI), Series A, 5.625%
due 5/01/2010 (a)(f) 5,364
3,735 Los Angeles County, California, Public Works Financing
Authority, Lease Revenue Refunding Bonds (Master
Refunding Project), Series A, 5% due 12/01/2028 (b) 3,853
Los Angeles County, California, Sanitation Districts
Financing Authority, Revenue Refunding Bonds
(Capital Projects--District Number 14),
Sub-Series B (e):
2,805 5% due 10/01/2025 2,920
2,550 5% due 10/01/2030 2,639
1,000 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series A, 5%
due 7/01/2030 (d) 1,034
8,705 Modesto, California, Wastewater Treatment Facilities
Revenue Bonds, 5.625% due 11/01/2007 (b)(f) 9,049
7,570 Morgan Hill, California, Unified School District, GO,
5% due 8/01/2026 (e)(k) 2,789
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 1,750 North City-West, California, School Facilities
Financing Authority, Special Tax Refunding Bonds,
Series B, 5.75% due 9/01/2015 (d) $ 1,796
Oakland, California, Alameda County Unified School
District, GO (b):
4,240 (Election of 2000), 5% due 8/01/2027 4,382
3,290 Series F, 5.50% due 8/01/2017 3,496
3,770 Series F, 5.50% due 8/01/2018 4,005
Oakland, California, Joint Powers Financing Authority,
Lease Revenue Bonds (Oakland Administration
Buildings) (a)(f):
11,395 5.75% due 8/01/2006 11,682
2,000 5.90% due 8/01/2006 2,051
5,250 Orange County, California, Sanitation District, COP,
5% due 2/01/2033 (e) 5,375
3,000 Oxnard, California, Financing Authority,
Wastewater Revenue Bonds (Redwood Trunk
Sewer and Headworks Projects), Series A,
5.25% due 6/01/2034 (e) 3,165
1,000 Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50% due 11/01/2035 (b) 1,090
2,000 Peralta, California, Community College District, GO
(Election of 2000), Series D, 5% due 8/01/2030 (d) 2,069
1,750 Pleasant Valley, California, School District, Ventura
County, GO, Series C, 5.75% due 8/01/2025 (b)(g) 1,860
2,255 Pomona, California, Public Financing Authority
Revenue Refunding Bonds (Merged Redevelopment
Project), Series A1, 5.75% due 2/01/2034 2,355
10,600 Port of Oakland, California, Port Revenue Refunding
Bonds, Series I, 5.40% due 11/01/2017 (b) 11,063
5,807 Port of Oakland, California, RIB, Refunding, AMT,
Series 717X, 6.68% due 11/01/2027 (e)(h) 6,393
4,315 Rancho Cucamonga, California, Redevelopment
Agency, Tax Allocation Refunding Bonds (Rancho
Redevelopment Project), 5.25% due 9/01/2020 (d) 4,520
2,345 Richmond, California, Redevelopment Agency, Tax
Allocation, Refunding Bonds (Harbour Redevelopment
Project), Series A, 5.50% due 7/01/2018 (b) 2,470
5,000 Sacramento, California, Municipal Utility District,
Electric Revenue Refunding Bonds, Series L, 5.125%
due 7/01/2022 (b) 5,167
Sacramento, California, Municipal Utility District
Financing Authority, Revenue Bonds (b):
2,500 (Consumers Project), 5.125% due 7/01/2029 2,624
8,000 DRIVERS, Series 1237Z, 6.139%
due 1/01/2014 (h) 8,795
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield California Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
Sacramento County, California, Sanitation District
Financing Authority, Revenue Refunding Bonds:
$ 6,775 (County Sanitation District Number 1), 5%
due 8/01/2035 (b) $ 7,008
3,455 Series A, 5.60% due 12/01/2017 3,493
10,100 San Bernardino, California, City Unified School
District, GO, Refunding, Series A, 5.875%
due 8/01/2009 (e)(f) 10,882
3,000 San Bernardino, California, Joint Powers Financing
Authority, Lease Revenue Bonds (Department
of Transportation Lease), Series A, 5.50%
due 12/01/2020 (b) 3,064
4,000 San Bernardino County, California, Redevelopment
Agency, Tax Allocation Refunding Bonds (San
Sevaine Redevelopment Project), Series A, 5%
due 9/01/2035 (i) 4,065
8,000 San Diego, California, Certificates of Undivided
Interest, Revenue Bonds, ROLS, Series II-R-551X, 8%
due 8/01/2024 (e)(h) 8,515
1,665 San Diego, California, Community College District, GO
(Election of 2002), 5% due 5/01/2030 (d) 1,721
3,600 San Diego, California, Unified School District, GO
(Election of 1998), Series F, 5% due 7/01/2029 (d) 3,712
5,010 San Diego County, California, Water Authority, Water
Revenue Bonds, COP, Series A, 5% due 5/01/2031 (d) 5,149
San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds (b):
2,715 RIB, Series 1318-X, 5.97% due 7/01/2034 (h) 2,902
6,000 Series A, 5% due 7/01/2030 6,205
1,720 San Francisco, California, City and County Educational
Facilities, GO (Community College), Series A, 5.75%
due 6/15/2019 1,821
1,310 San Francisco, California, City and County Zoo
Facilities, GO, Series B, 5.75% due 6/15/2019 1,387
4,615 San Jose, California, Airport Revenue Bonds, Series D,
5% due 3/01/2028 (b) 4,738
San Jose-Evergreen, California, Community College
District, Capital Appreciation, GO (Election of 2004),
Refunding, Series A (b)(k):
10,005 5.12% due 9/01/2023 4,171
5,000 5.33% due 9/01/2028 1,561
5,000 San Juan, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2028 (b) 5,147
5,040 San Ysidro, California, School District, Capital
Appreciation, GO (Election of 1997), Series D,
5.249% due 8/01/2027 (e)(k) 1,758
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 2,020 Santa Clara, California, Unified School District, GO,
5.50% due 7/01/2021 (e) $ 2,156
3,500 Santa Clara County, California, Housing Authority,
M/F Housing Revenue Bonds (John Burns
Gardens Apartments Project), AMT, Series A, 6%
due 8/01/2041 3,585
1,170 Santa Clarita, California, Community College District,
GO (Election 2001), 5% due 8/01/2028 (d) 1,212
8,315 Santa Monica, California, Community College District,
GO (Election of 2002), Refunding, Series C, 5.07%
due 8/01/2028 (b)(k) 2,639
4,000 Santa Monica, California, Community College
District, GO (Election of 2004), Series A, 5%
due 5/01/2030 (b) 4,135
4,000 Santa Monica, California, Redevelopment Agency,
Tax Allocation Bonds (Earthquake Recovery
Redevelopment Project), 6% due 7/01/2009 (a)(f) 4,317
2,500 Sequoia, California, Unified High School District, GO,
Refunding, 5% due 7/01/2028 (d) 2,597
6,875 Sonoma County, California, Junior College District,
GO (Election 2002), Refunding, Series B, 5%
due 8/01/2028 (d) 7,122
2,265 South Bayside, California, Waste Management
Authority, Waste System Revenue Bonds, 5.75%
due 3/01/2020 (a) 2,424
6,750 South Tahoe, California, Joint Powers Financing
Authority, Revenue Refunding Bonds (South Tahoe
Redevelopment Project Area Number 1), Series A, 5%
due 10/01/2028 (a) 6,965
1,600 Stockton, California, Public Financing Authority, Water
Revenue Bonds (Water System Capital Improvement
Projects), Series A, 5% due 10/01/2031 (b) 1,655
3,235 Taft, California, Public Financing Authority, Lease
Revenue Bonds (Community Correctional Facility),
Series A, 6.05% due 1/01/2017 (b) 3,317
1,310 Torrance, California, Hospital Revenue Refunding
Bonds (Torrance Memorial Medical Center), Series A,
6% due 6/01/2022 1,416
4,245 University of California Revenue Bonds, ROLS,
Series II-R-524, 6.088% due 5/15/2033 (d)(h) 4,511
1,000 Ventura, California, Unified School District,
GO (Election of 1997), Series H, 5.125%
due 8/01/2034 (d) 1,039
3,990 Vernon, California, Electric System Revenue Bonds
(Malburg Generating Station Project), 5.50%
due 4/01/2008 (f) 4,132
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield California Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (concluded)
$ 5,000 Vista, California, Joint Powers Financing Authority,
Lease Revenue Refunding Bonds, 5.625%
due 5/01/2016 (b) $ 5,190
5,055 West Contra Costa, California, Unified School District,
Capital Appreciation, GO (Election of 2002), Series C,
4.849% due 8/01/2027 (e)(k) 1,755
Puerto Rico--4.1%
2,140 Puerto Rico Commonwealth Highway and
Transportation Authority, Highway Revenue Bonds,
Series Y, 5.50% due 7/01/2006 (b)(f) 2,179
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (e):
9,750 4.66% due 7/01/2033 2,542
9,375 4.77% due 7/01/2043 1,469
6,500 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.125% due 7/01/2029 6,678
(In Thousands)
Face
Amount Municipal Bonds Value
U.S. Virgin Islands--1.1%
$ 3,000 Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker
Project), AMT, 6.50% due 7/01/2021 $ 3,370
Total Municipal Bonds
(Cost--$473,830)--155.8% 485,986
Shares
Held Short-Term Securities
16,388 CMA California Municipal Money Fund,
3.14% (j)(l) 16,388
Total Short-Term Securities
(Cost--$16,388)--5.3% 16,388
Total Investments (Cost--$490,218*)--161.1% 502,374
Liabilities in Excess of Other Assets--(4.9%) (15,354)
Preferred Stock, at Redemption Value--(56.2%) (175,134)
---------
Net Assets Applicable to Common Stock--100.0% $ 311,886
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 490,154
===============
Gross unrealized appreciation $ 15,077
Gross unrealized depreciation (2,857)
---------------
Net unrealized appreciation $ 12,220
===============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FNMA/GNMA Collateralized.
(d) FSA Insured.
(e) FGIC Insured.
(f) Prerefunded.
(g) Escrowed to maturity.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Radian Insured.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA California Municipal Money Fund 15,571 $65
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) Represents the current yield as of 4/30/2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield California Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California--145.4%
$ 7,000 ABAG Finance Authority for Nonprofit Corporations,
California, COP (Children's Hospital Medical Center),
6% due 12/01/2029 (a) $ 7,554
2,350 Alameda, California, GO, 5% due 8/01/2033 (f) 2,425
5,665 Alhambra, California, Unified School District, GO
(Election of 2004), Series A, 5% due 8/01/2029 (b) 5,860
3,580 Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue Bonds,
Series A, 5% due 10/01/2031 (e) 3,668
2,400 Anaheim, California, Union High School District, GO
(Election of 2002), 5% due 8/01/2027 (f) 2,472
3,675 Bakersfield, California, COP, Refunding (Convention
Center Expansion Project), 5.80% due 4/01/2007 (f)(g) 3,783
255 Bay Area Government Association, California, Tax
Allocation Revenue Refunding Bonds (California
Redevelopment Agency Pool), Series A, 6%
due 12/15/2024 (e) 258
2,700 Bay Area Toll Authority, California, Toll Bridge Revenue
Refunding Bonds (San Francisco Bay Area), Series F,
5% due 4/01/2031 2,792
3,990 Brentwood, California, Infrastructure Refinancing
Authority, Infrastructure Revenue Refunding Bonds,
Series A, 5.20% due 9/02/2029 (e) 4,146
California Community College Financing Authority,
Lease Revenue Bonds, Series A (f):
3,215 5.95% due 12/01/2022 3,498
1,100 6% due 12/01/2029 1,199
5,000 California Educational Facilities Authority Revenue
Bonds (University of San Diego), Series A, 5.50%
due 10/01/2032 5,298
11,565 California Educational Facilities Authority, Student
Loan Revenue Bonds (CalEdge Loan Program), AMT,
5.55% due 4/01/2028 (a) 11,953
California HFA, Home Mortgage Revenue Bonds,
VRDN (i):
5,700 AMT, Series B, 3.75% due 8/01/2033 (e) 5,700
9,700 Series F, 3.68% due 2/01/2033 (a) 9,700
2,750 California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A, 5.50%
due 6/01/2022 (e)(j) 2,894
California Rural Home Mortgage Finance Authority,
S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT (d):
550 Series A, 6.35% due 12/01/2029 (c) 558
235 Series B, 6.25% due 12/01/2031 235
12,680 California State Department of Veteran Affairs, Home
Purpose Revenue Refunding Bonds, Series A, 5.35%
due 12/01/2027 (a) 13,389
860 California State, GO, 6.25% due 10/01/2019 (f)(g) 869
California State, GO, Refunding:
9,935 DRIVERS, AMT, Series 239, 7.263%
due 12/01/2032 (a)(h) 10,453
3,000 Series BX, 5.50% due 12/01/2031 (e) 3,034
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 4,530 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections--Ten
Administrative Segregation Housing Units), Series A,
5.25% due 3/01/2020 (a) $ 4,753
16,675 California State Public Works Board, Lease Revenue
Refunding Bonds (Department of Corrections),
Series B, 5.625% due 11/01/2016 (f) 17,163
2,660 California State University, Systemwide Revenue
Bonds, Series A, 5.375% due 11/01/2018 (b) 2,868
2,720 California State University, Systemwide
Revenue Refunding Bonds, Series A, 5.125%
due 11/01/2026 (a) 2,824
5,950 California State, Various Purpose, GO, 5.50%
due 11/01/2033 6,401
4,100 California Statewide Communities Development
Authority, COP (Kaiser Permanente), 5.30%
due 12/01/2015 (e)(j) 4,194
3,685 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 4,001
8,155 Calleguas-Las Virgenes, California, Public Financing
Authority Revenue Bonds (Calleguas Municipal Water
District Project), Series A, 5% due 7/01/2033 (f) 8,347
7,000 Capistrano, California, Unified School District,
Community Facility District, Special Tax Refunding
Bonds, 5% due 9/01/2029 (b) 7,200
Ceres, California, Redevelopment Agency, Tax
Allocation Bonds (Ceres Redevelopment Project Area
Number 1) (f):
4,600 5.75% due 11/01/2030 5,005
4,000 5% due 11/01/2033 4,115
6,000 Chaffey, California, Union High School District, GO,
Series C, 5.375% due 5/01/2023 (e) 6,412
5,910 Chula Vista, California, Elementary School District,
COP, 5% due 9/01/2029 (f) 6,068
2,540 Coalinga, California, Redevelopment Agency Tax
Allocation Bonds, 5.90% due 9/15/2025 (f) 2,808
2,000 Compton, California, Unified School District, GO
(Election of 2002), Series B, 5% due 6/01/2029 (f) 2,062
4,135 Contra Costa, California, Water District, Water Revenue
Refunding Bonds, Series L, 5% due 10/01/2032 (e) 4,236
12,180 Contra Costa County, California, COP, Refunding
(Merrithew Memorial Hospital Project), 5.375%
due 11/01/2017 (f) 12,691
8,500 Corona, California, COP (Clearwater Cogeneration
Project), 5% due 9/01/2028 (f) 8,720
2,000 Coronado, California, Community Development
Agency, Tax Allocation Bonds (Coronado Community
Development Project), 5.60% due 9/01/2030 (f) 2,146
5,000 East Bay Municipal Utility District, California, Water
System Revenue Bonds, RIB, Series 1317-X, 5.97%
due 6/01/2035 (f)(h) 5,317
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield California Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 9,045 El Monte, California, Unified School District, GO
(Election of 2002), Series B, 5% due 3/01/2029 (f) $ 9,345
2,500 Fontana, California, Public Financing Authority,
Subordinate Lien Tax Allocation Revenue Bonds
(North Fontana Redevelopment Project), Series A, 5%
due 10/01/2022 (a) 2,603
Fremont, California, Unified School District, Alameda
County, GO:
6,000 (Election of 2002), Series B, 5%
due 8/01/2030 (e) 6,206
10,755 Series A, 5.50% due 8/01/2026 (b) 11,571
4,295 Fresno, California, Joint Powers Financing
Authority, Lease Revenue Bonds, Series A, 5.75%
due 6/01/2026 (e) 4,647
6,930 Fullerton, California, Public Financing Authority, Tax
Allocation Revenue Bonds, 5% due 9/01/2027 (a) 7,149
4,390 Glendale, California, Electric Revenue Bonds, 5%
due 2/01/2032 (f) 4,490
Glendora, California, Unified School District, GO
(Election of 2005), Series A (f):
1,350 5% due 8/01/2027 1,402
2,700 5.25% due 8/01/2030 2,885
3,810 Hercules, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Hercules Merged Project
Area), 5% due 8/01/2029 (a) 3,912
5,000 Hesperia, California, Community Redevelopment
Agency, Tax Allocation Bonds, Series A, 5%
due 9/01/2025 (k) 5,162
5,000 Irvine, California, Unified School District Financing
Authority, Special Tax Bonds, Series A, 5%
due 9/01/2034 (a) 5,128
2,500 La Quinta, California, Financing Authority,
Local Agency Revenue Bonds, Series A, 5.25%
due 9/01/2024 (a) 2,656
3,050 Little Lake, California, City School District, GO,
Refunding, 5.50% due 7/01/2025 (e) 3,349
10,260 Lodi, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2029 (e) 10,548
6,825 Long Beach, California, Bond Finance Authority
Revenue Bonds (Redevelopment, Housing
and Gas Utility Financings), Series A-1, 5%
due 8/01/2030 (a) 7,008
7,575 Long Beach, California, Harbor Revenue Bonds, RIB,
AMT, Series 786-X, 6.68% due 5/15/2024 (h) 8,185
2,735 Long Beach, California, Harbor Revenue Refunding
Bonds, AMT, Series A, 5% due 5/15/2022 (f) 2,821
10,000 Los Angeles, California, Community Redevelopment
Agency, Community Redevelopment Financing
Authority Revenue Bonds (Bunker Hill Project),
Series A, 5% due 12/01/2027 (e) 10,295
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
Los Angeles, California, Department of Airports,
Airport Revenue Bonds (b):
$ 290 (Los Angeles International Airport), AMT, Series D,
5.625% due 5/15/2012 $ 292
2,500 (Ontario International Airport), AMT, Series A, 6%
due 5/15/2017 2,529
5,275 Series A, 5.25% due 5/15/2019 5,571
Los Angeles, California, Harbor Department Revenue
Bonds, AMT (f)(h):
7,365 RIB, Series 349, 8.38% due 11/01/2026 7,690
7,000 Trust Receipts, Class R, Series 7, 8.389%
due 11/01/2026 7,309
Los Angeles, California, Unified School District, GO:
2,880 (Election of 2004), Series C, 5% due 7/01/2027 (b) 2,975
5,000 (Election of 2004), Series F, 5% due 7/01/2030 (b) 5,194
7,000 Series E, 5% due 7/01/2030 (a) 7,239
5,000 Los Angeles, California, Water and Power Revenue
Bonds (Power System), Sub-Series A-1, 5%
due 7/01/2031 (e) 5,167
Los Angeles, California, Water and Power Revenue
Refunding Bonds (f):
8,000 DRIVERS, Series 1302Z, 5.889%
due 1/01/2012 (h) 8,475
3,165 (Power System), Series A-A-2, 5.375%
due 7/01/2021 3,363
Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue
Refunding Bonds:
5,240 Proposition A, First Tier Senior Series A, 5%
due 7/01/2027 (a) 5,431
6,500 Proposition A, First Tier Senior Series A, 5%
due 7/01/2035 (a) 6,722
2,000 Proposition C, Second Tier Senior Series A,
5.25% due 7/01/2030 (b) 2,101
5,000 Los Angeles County, California, Public Works
Financing Authority, Lease Revenue Refunding
Bonds (Master Refunding Project), Series A, 5%
due 12/01/2028 (f) 5,157
3,000 Los Rios, California, Community College District, GO
(Election of 2002), Series B, 5% due 8/01/2027 (f) 3,096
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds:
5,370 Series B-1, 5% due 10/01/2033 (b) 5,517
1,090 Series B-3, 5% due 10/01/2029 (f) 1,125
4,245 Nevada County, California, COP, Refunding, 5.25%
due 10/01/2019 (f) 4,471
2,000 New Haven, California, Unified School District, GO,
Refunding, 5.75% due 8/01/2020 (e) 2,195
2,720 Oakland, California, GO (Measure DD), Series A, 5%
due 1/15/2026 (f) 2,803
2,000 Oakland, California, State Building Authority, Lease
Revenue Bonds (Elihu M. Harris State Office Building),
Series A, 5.50% due 4/01/2008 (a)(g) 2,090
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield California Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 1,245 Orange County, California, Airport Revenue Refunding
Bonds, AMT, 5.625% due 7/01/2012 (f) $ 1,290
6,360 Orange County, California, Public Financing Authority,
Lease Revenue Refunding Bonds (Juvenile Justice
Center Facility), 5.375% due 6/01/2018 (a) 6,837
5,000 Orange County, California, Recovery COP, Refunding,
Series A, 6% due 7/01/2006 (f)(g) 5,119
10,000 Oxnard, California, Financing Authority, Wastewater
Revenue Bonds (Redwood Trunk Sewer and Headworks
Projects), Series A, 5.25% due 6/01/2034 (b) 10,549
9,645 Oxnard, California, Unified High School District, GO,
Refunding, Series A, 6.20% due 8/01/2030 (f) 11,102
1,275 Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center Project),
Series A, 5.50% due 11/01/2035 (f) 1,389
4,640 Palmdale, California, Water District Public Facility
Corporation, COP, 5% due 10/01/2029 (b) 4,762
Placentia-Yorba Linda, California, Unified School
District:
5,000 COP, 5% due 10/01/2030 (b) 5,144
5,000 GO (Election of 2002), Series C, 5%
due 8/01/2029 (f) 5,172
Port of Oakland, California, AMT (b)(h):
9,520 RIB, Series 1192, 6.68% due 11/01/2027 10,480
10,000 RITR, Class R, Series 5, 7.424% due 11/01/2012 11,251
7,500 Port of Oakland, California, Revenue Bonds, AMT,
Series K, 5.75% due 11/01/2029 (b) 7,927
3,500 Rio Hondo, California, Community College District,
GO, Series A, 5.25% due 8/01/2014 (f)(g) 3,802
3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,078
Riverside, California, Unified School District, GO
(Election of 2001):
6,000 Series A, 5.25% due 2/01/2023 (b) 6,370
7,515 Series B, 5% due 8/01/2030 (f) 7,795
4,500 Riverside County, California, Asset Leasing Corporation,
Leasehold Revenue Refunding Bonds (Riverside County
Hospital Project), Series B, 5.70% due 6/01/2016 (f) 4,978
3,100 Roseville, California, Financing Authority, Senior
Lien, Revenue Refunding Bonds, Series A, 5%
due 9/01/2025 (a) 3,209
2,565 Saddleback Valley, California, Unified School District,
GO, 5% due 8/01/2029 (e) 2,645
5,000 San Bernardino, California, City Unified School District,
GO, Series A, 5% due 8/01/2028 (e) 5,157
490 San Bernardino County, California, S/F Home
Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.25% due 12/01/2031 (d) 491
12,355 San Diego, California, Certificates of Undivided
Interest, Revenue Bonds, ROLS, Series II-R-551X, 8%
due 8/01/2024 (b)(h) 13,150
2,665 San Diego, California, Community College District, GO
(Election of 2002), 5% due 5/01/2030 (e) 2,755
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
San Diego County, California, COP (Salk Institute for
Bio Studies) (f):
$ 3,570 5.75% due 7/01/2022 $ 3,874
5,200 5.75% due 7/01/2031 5,647
San Diego County, California, Water Authority, Water
Revenue Bonds, COP, Series A (e):
7,350 5% due 5/01/2030 7,559
10,000 5% due 5/01/2031 10,277
San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds (f):
5,250 RIB, Series 1318-X, 5.97% due 7/01/2034 (h) 5,612
9,630 Series A, 5% due 7/01/2030 9,959
San Francisco, California, City and County Airport
Commission, International Airport Revenue Refunding
Bonds, Second Series 28B (f):
3,000 5.25% due 5/01/2023 3,171
6,455 5.25% due 5/01/2024 6,823
San Francisco, California, City and County Airport
Commission, International Airport, Special Facilities
Lease Revenue Bonds (SFO Fuel Company LLC), AMT,
Series A (e):
1,000 6.10% due 1/01/2020 1,054
985 6.125% due 1/01/2027 1,038
San Francisco, California, Community College District,
GO, Refunding, Series A (b):
1,735 5.375% due 6/15/2019 1,860
1,730 5.375% due 6/15/2020 1,855
1,925 5.375% due 6/15/2021 2,054
4,135 San Jose, California, Airport Revenue Bonds, Series D,
5% due 3/01/2028 (f) 4,245
5,700 San Jose, California, Financing Authority, Lease
Revenue Refunding Bonds, DRIVERS, Series 1280Z,
5.889% due 12/01/2010 (a)(h) 5,937
3,650 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds, RIB, AMT, Series 149, 7.58%
due 8/01/2027 (f)(h) 3,964
4,250 San Juan, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2028 (f) 4,375
1,700 San Mateo County, California, Community College
District, COP, 5% due 10/01/2014 (f)(g) 1,745
4,350 San Mateo County, California, Transit District,
Sales Tax Revenue Refunding Bonds, Series A, 5%
due 6/01/2029 (f) 4,491
2,595 Santa Clara, California, Redevelopment Agency, Tax
Allocation Bonds (Bayshore North Project), Series A,
5.25% due 6/01/2019 (a) 2,721
5,500 Santa Clara, California, Subordinated Electric Revenue
Bonds, Series A, 5% due 7/01/2028 (f) 5,660
1,100 Santa Clara Valley, California, Water District,
Water Utility System Revenue, Series A, 5.125%
due 6/01/2031 (b) 1,142
Santa Rosa, California, High School District, GO:
3,000 5.375% due 8/01/2026 (e) 3,191
2,500 (Election of 2002), 5% due 8/01/2028 (f) 2,573
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield California Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 6,750 Shasta, California, Joint Powers Financing Authority,
Lease Revenue Bonds (County Administration Building
Project), Series A, 5% due 4/01/2033 (f) $ 6,904
South Tahoe, California, Joint Powers Financing
Authority, Revenue Refunding Bonds (South Tahoe
Redevelopment Project Area Number 1), Series A (e):
1,645 5% due 10/01/2029 1,688
5,830 5% due 10/01/2034 5,968
5,000 Southern California Public Power Authority, Power
Project Revenue Bonds (Magnolia Power Project),
Series A-1, 5% due 7/01/2033 (a) 5,133
2,600 Stockton, California, Public Financing Authority, Water
Revenue Bonds (Water System Capital Improvement
Projects), Series A, 5% due 10/01/2031 (f) 2,689
1,055 Stockton, California, Public Financing Revenue
Refunding Bonds, Series A, 5.875% due 9/02/2016 (e) 1,062
2,315 Sweetwater, California, Union High School District,
Public Financing Authority, Special Tax Revenue Bonds,
Series A, 5% due 9/01/2029 (e) 2,377
1,500 Tehachapi, California, COP, Refunding (Installment
Sale), 5.75% due 11/01/2016 (e) 1,659
6,000 Tracy, California, Community Development Agency,
Tax Allocation Refunding Bonds, Series A, 5%
due 3/01/2034 (a) 6,128
3,000 Turlock, California, Public Finance Authority, Sewer
Revenue Bonds, Series A, 5% due 9/15/2033 (b) 3,082
University of California Revenue Bonds:
8,720 (Multiple Purpose Projects), Series Q, 5%
due 9/01/2024 (e) 9,027
6,110 (Multiple Purpose Projects), Series Q, 5%
due 9/01/2033 (e) 6,287
4,790 Series O, 5.125% due 9/01/2031 (b) 4,944
3,395 Ventura County, California, Community College
District, GO, Refunding, Series A, 5% due 8/01/2027 (f) 3,497
(In Thousands)
Face
Amount Municipal Bonds Value
California (concluded)
$ 2,550 Vista, California, Unified School District, GO, Series B,
5% due 8/01/2028 (b) $ 2,625
2,185 Walnut, California, Public Financing Authority, Tax
Allocation Revenue Bonds (Walnut Improvement
Project), 5.375% due 9/01/2021 (a) 2,325
6,690 West Contra Costa, California, Unified School District,
GO (Election of 2002), Series B, 5% due 8/01/2032 (e) 6,850
Puerto Rico--9.4%
20,000 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A, 4.56% due 7/01/2029 (a)(m) 6,359
8,410 Puerto Rico Commonwealth, Public Improvement,
GO, 5.75% due 7/01/2010 (f) 9,057
10,000 Puerto Rico Municipal Finance Agency, GO, RIB,
Series 225, 7.41% due 8/01/2012 (e)(h) 11,424
20,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.75% due 2/01/2007 (g) 20,312
Total Municipal Bonds
(Cost--$762,040)--154.8% 779,619
Shares
Held Short-Term Securities
36 CMA California Municipal Money Fund, 3.14% (l)(n) 36
Total Short-Term Securities
(Cost--$36)--0.0% 36
Total Investments (Cost--$762,076*)--154.8% 779,655
Liabilities in Excess of Other Assets--(0.2%) (866)
Preferred Stock, at Redemption Value--(54.6%) (275,181)
----------
Net Assets Applicable to Common Stock--100.0% $ 503,608
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 762,043
===============
Gross unrealized appreciation $ 21,072
Gross unrealized depreciation (3,460)
---------------
Net unrealized appreciation $ 17,612
===============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHLMC Collateralized.
(d) FNMA/GNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(j) Escrowed to maturity.
(k) XL Capital Insured.
(l) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA California Municipal Money Fund 29 $45
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(n) Represents the current yield as of 4/30/2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield Florida Fund
(In Thousands)
Face
Amount Municipal Bonds Value
District of Columbia--0.5%
$ 1,000 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series A, 5.25%
due 10/01/2032 (f) $ 1,028
Florida--139.7%
2,100 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (b) 2,212
2,000 Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds (Commercial Project), Series A, 5.625%
due 5/01/2032 (o) 2,144
2,870 Broward County, Florida, Airport System Revenue
Bonds, AMT, Series I, 5.75% due 10/01/2018 (b) 3,091
Broward County, Florida, Educational Facilities
Authority Revenue Bonds (Nova Southeastern
University):
2,750 5% due 4/01/2031 (c) 2,837
1,000 Series B, 5.625% due 4/01/2034 1,030
Citrus County, Florida, Hospital Board Revenue
Refunding Bonds (Citrus Memorial Hospital):
2,385 6.25% due 8/15/2023 2,567
2,850 6.375% due 8/15/2032 3,060
3,160 Collier County, Florida, IDA, IDR, Refunding (Southern
States Utilities), AMT, 6.50% due 10/01/2025 3,232
Duval County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT (i):
1,370 5.40% due 10/01/2021 1,376
2,310 5.85% due 10/01/2027 (m) 2,355
1,000 Flagler County, Florida, School Board, COP, Series A,
5% due 8/01/2024 (j) 1,034
515 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (j) 526
Florida Municipal Loan Council Revenue Bonds (m):
1,580 Series A-1, 5.125% due 7/01/2034 1,637
4,250 Series B, 5.375% due 11/01/2030 4,490
1,220 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series A, 6% due 1/01/2010 (n) 1,324
2,500 Florida State Board of Education, GO (Public
Education Capital Outlay), Series J, 5% due 6/01/2031 2,575
1,000 Florida State Board of Education, Lottery Revenue
Bonds, Series A, 6% due 7/01/2014 (f) 1,093
1,000 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (b) 1,036
1,075 Gainesville, Florida, Utilities System Revenue Bonds,
Series A, 5.25% due 10/01/2022 1,145
5,000 Hernando County, Florida, School Board, COP, 5%
due 7/01/2035 (m) 5,151
5,900 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series A, 6% due 11/15/2011 (n) 6,559
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
Hillsborough County, Florida, Court Facilities Revenue
Bonds (b)(n):
$ 3,945 5.40% due 11/01/2007 $ 4,081
1,055 5.40% due 11/01/2012 1,146
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
2,500 Series A, 7.125% due 4/01/2030 2,759
3,750 Series B, 7.125% due 4/01/2030 4,138
1,000 Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project), Series C,
5.50% due 7/01/2032 1,024
1,500 Hillsborough County, Florida, School Board, COP, 5%
due 7/01/2029 (m) 1,537
1,000 Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic--Jacksonville), Series A, 5.50%
due 11/15/2036 (m) 1,072
Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT (a):
1,140 5.50% due 10/01/2030 1,188
2,800 5.875% due 6/01/2031 3,011
1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds,
Series B, 5.125% due 10/01/2032 (f) 1,549
2,315 Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (f) 2,427
3,500 Lakeland, Florida, Hospital System Revenue Bonds
(Lakeland Regional Health System), Series A, 5.50%
due 11/15/2026 (m) 3,686
3,375 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (b) 3,602
40 Lee County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series A-1,
7.125% due 3/01/2028 (i) 40
200 Lee County, Florida, Hospital Board of Directors,
Hospital Revenue Bonds (Memorial Health System),
VRDN, Series A, 3.76% due 4/01/2025 (p) 200
125 Leon County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series B, 7.30%
due 1/01/2028 (g)(k) 126
155 Manatee County, Florida, HFA, S/F Mortgage Revenue
Bonds, AMT, Sub-Series 2, 7.75% due 5/01/2026 (g)(k) 160
235 Manatee County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Sub-Series 1, 6.25%
due 11/01/2028 (k) 239
1,000 Marco Island, Florida, Utility System Revenue Bonds,
5% due 10/01/2033 (m) 1,029
Martin County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Martin Memorial Medical
Center), Series A:
1,350 5.75% due 11/15/2022 1,435
3,535 5.875% due 11/15/2032 3,747
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield Florida Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 3,000 Miami Beach, Florida, Water and Sewer Revenue
Bonds, 5.75% due 9/01/2025 (b) $ 3,240
Miami-Dade County, Florida, Aviation Revenue Bonds
(Miami International Airport), AMT, Series A:
4,300 6% due 10/01/2029 (f) 4,631
4,335 5% due 10/01/2033 (j) 4,389
1,650 5% due 10/01/2033 (f) 1,671
10,040 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2038 (d) 10,198
1,750 Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A, 5.75% due 4/01/2029 (b) 1,879
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds (f):
8,000 DRIVERS, Series 160, 8.86%
due 7/01/2010 (n)(q) 9,673
4,750 Series B, 5% due 7/01/2033 4,891
535 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.30% due 10/01/2020 (i) 554
3,300 Miami-Dade County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds, DRIVERS,
Series 208, 7.124% due 8/15/2017 (b)(q) 3,772
Miami-Dade County, Florida, School Board, COP:
3,200 Series A, 5.50% due 10/01/2009 (j)(n) 3,378
1,250 Series A, 5% due 11/01/2022 (b) 1,306
3,500 Series A, 5% due 11/01/2026 (b) 3,633
2,500 Series B, 5% due 11/01/2031 (b) 2,576
2,800 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (m) 2,977
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds:
1,750 (Adventist Health System), 6.25% due 11/15/2024 1,915
5,140 (Orlando Regional Healthcare), 6%
due 12/01/2012 (n) 5,741
10,500 Orange County, Florida, School Board, COP, Series A,
5.25% due 8/01/2009 (m)(n) 11,071
8,615 Orange County, Florida, Tourist Development, Tax
Revenue Bonds, 5.50% due 10/01/2032 (b) 9,193
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (b):
3,000 5% due 7/01/2030 3,084
10,185 5% due 7/01/2035 10,456
1,000 Orlando, Florida, Utilities Commission, Water and
Electric Revenue Refunding Bonds, Series C, 5.25%
due 10/01/2023 1,059
1,955 Osceola County, Florida, School Board, COP, Series A,
5.25% due 6/01/2027 (b) 2,054
1,760 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (f) 1,885
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 3,390 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (f) $ 4,153
6,000 Palm Beach County, Florida, School Board, COP,
Series A, 6.25% due 8/01/2010 (f)(n) 6,631
1,435 Palm Coast, Florida, Utility System Revenue Bonds,
5% due 10/01/2027 (m) 1,475
Peace River/Manasota Regional Water Supply
Authority, Florida, Utility System Revenue Bonds,
Series A (j):
3,500 5% due 10/01/2025 3,644
2,075 5% due 10/01/2030 2,147
8,000 5% due 10/01/2035 8,267
Pinellas County, Florida, HFA, S/F Housing Revenue
Refunding Bonds (Multi-County Program), AMT,
Series A-1 (i):
485 6.30% due 9/01/2020 488
735 6.35% due 9/01/2025 739
3,000 Pinellas County, Florida, Health Facilities Authority
Revenue Bonds (BayCare Health System Inc.), 5.75%
due 5/15/2013 (n) 3,294
Polk County, Florida, Public Facilities Revenue
Bonds (m):
1,300 5% due 12/01/2025 1,352
1,480 5% due 12/01/2033 1,528
4,385 Polk County, Florida, School Board COP, Master Lease,
Series A, 5.50% due 1/01/2025 (j) 4,681
1,200 Port Everglades Authority, Florida, Port Revenue
Bonds, 7.125% due 11/01/2016 (e) 1,413
1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25%
due 9/01/2025 (m) 1,292
1,325 Reedy Creek, Florida, Improvement District, Utilities
Revenue Bonds, Series 1, 5% due 10/01/2021 (b) 1,387
1,900 Saint Johns County, Florida, Ponte Vedra Utility System
Revenue Bonds, 5% due 10/01/2030 (j) 1,966
Saint Johns County, Florida, Sales Tax Revenue
Bonds, (b):
2,400 Series A, 5.25% due 10/01/2032 2,535
1,200 Series A, 5.25% due 10/01/2034 1,268
1,015 Series B, 5.25% due 10/01/2032 1,072
1,500 Santa Rosa County, Florida, School Board, COP,
DRIVERS, Series 1293Z, 6.38% due 2/01/2014 (f)(q) 1,684
1,000 Seminole County, Florida, Sales Tax Revenue Bonds,
Series A, 5% due 10/01/2031 (m) 1,034
4,250 South Broward, Florida, Hospital District
Revenue Bonds, DRIVERS, Series 337, 7.129%
due 5/01/2032 (m)(q) 4,906
South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.):
1,000 5.80% due 10/01/2034 1,032
1,150 6.375% due 10/01/2034 1,245
2,800 Tallahassee, Florida, Energy System Revenue Bonds,
5% due 10/01/2035 (m) 2,889
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield Florida Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 500 Tamarac, Florida, Capital Improvement Revenue
Bonds, 5% due 10/01/2030 (m) $ 516
5,000 Tampa Bay, Florida, Water Utility System Revenue
Bonds, 5.75% due 10/01/2011 (f)(n) 5,474
3,235 University of Central Florida (UCF) Athletics
Association Inc., COP, Series A, 5.25%
due 10/01/2034 (f) 3,397
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (m):
1,995 5.375% due 11/01/2034 2,142
1,000 5.125% due 11/01/2036 1,042
5,040 Village Center Community Development District,
Florida, Utility Revenue Bonds, 5.125%
due 10/01/2028 (m) 5,241
1,000 Volusia County, Florida, IDA, Student Housing
Revenue Bonds (Stetson University Project),
Series A, 5% due 6/01/2035 (d) 1,032
5,000 Volusia County, Florida, School Board, COP
(Master Lease Program), 5.50%
due 8/01/2024 (j) 5,292
Georgia--1.7%
3,270 Atlanta, Georgia, Airport Passenger Facility Charge
and Subordinate Lien General Revenue Refunding
Bonds, Series C, 5% due 1/01/2033 (j) 3,345
Maryland--0.7%
1,375 Baltimore, Maryland, Convention Center Hotel
Revenue Bonds, Senior Series A, 5.25%
due 9/01/2039 (h) 1,451
(In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--3.6%
New Jersey EDA, Cigarette Tax Revenue Bonds:
$ 3,500 5.50% due 6/15/2024 $ 3,625
1,735 5.75% due 6/15/2029 1,833
505 5.50% due 6/15/2031 523
1,000 Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2041 1,131
Puerto Rico--4.0%
2,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 2,015
Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E:
1,715 5.70% due 2/01/2010 (n) 1,832
4,025 5.50% due 8/01/2029 4,220
Total Municipal Bonds
(Cost--$289,141)--150.2% 301,157
Shares
Held Short-Term Securities
5,335 CMA Florida Municipal Money Fund, 3.14% (l)(r) 5,335
10 Merrill Lynch Institutional Tax-Exempt Fund, 3.49% (l)(r) 10
Total Short-Term Securities
(Cost--$5,345)--2.7% 5,345
Total Investments (Cost--$294,486*)--152.9% 306,502
Other Assets Less Liabilities--2.0% 4,038
Preferred Shares, at Redemption Value--(54.9%) (110,039)
----------
Net Assets Applicable to Common Shares--100.0% $ 200,501
==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield Florida Fund
(In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 294,389
===============
Gross unrealized appreciation $ 12,606
Gross unrealized depreciation (493)
---------------
Net unrealized appreciation $ 12,113
===============
(a) ACA Insured.
(b) AMBAC Insured.
(c) Assured Guaranty Insured.
(d) CIFG Insured.
(e) Escrowed to maturity.
(f) FGIC Insured.
(g) FHLMC Collateralized.
(h) XL Capital Insured.
(i) FNMA/GNMA Collateralized.
(j) FSA Insured.
(k) GNMA Collateralized.
(l) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Florida Municipal Money Fund 5,335 $36
Merrill Lynch Institutional Tax-Exempt Fund (490) --*
* Amount is less than $1,000.
(m) MBIA Insured.
(n) Prerefunded.
(o) Radian Insured.
(p) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(q) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(r) Represents the current yield as of 4/30/2006.
o Forward interest rate swaps outstanding as of April 30, 2006
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 3.976% and
receive a floating rate based on a
1-week Bond Market Association rate
Broker, JPMorgan Chase Bank
Expires May 2021 $17,400 $ 454
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield Michigan Insured Fund II, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan--147.6%
$ 2,400 Adrian, Michigan, City School District, GO, 5%
due 5/01/2034 (d) $ 2,464
Anchor Bay, Michigan, School District, School Building
and Site, GO (c)(f):
2,000 Series I, 6% due 5/01/2009 2,127
3,165 Series II, 5.75% due 5/01/2010 3,398
2,150 Bullock Creek, Michigan, School District, GO, 5.50%
due 5/01/2010 (e)(f) 2,289
1,000 Central Montcalm, Michigan, Public Schools, GO,
5.75% due 5/01/2009 (e)(f) 1,057
3,850 Charlotte, Michigan, Public School District, GO,
5.375% due 5/01/2009 (c)(f) 4,027
2,420 Delta County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco--Escanaba),
Series A, 6.25% due 4/15/2012 (f) 2,722
Detroit, Michigan, City School District (School Building
and Site Improvement), GO, Series A (c)(f):
2,000 5% due 5/01/2013 2,125
1,480 5.375% due 5/01/2013 1,606
Detroit, Michigan, Water Supply System Revenue
Bonds:
1,000 DRIVERS, Series 200, 5.75%
due 7/01/2011 (c)(f)(g) 1,200
4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,697
2,000 Series B, 5.25% due 7/01/2032 (e) 2,100
4,400 Series B, 5% due 7/01/2034 (e) 4,498
2,500 Dickinson County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (International Paper Company
Project), Series A, 5.75% due 6/01/2016 2,656
2,170 Dickinson County, Michigan, Healthcare System,
Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (h) 2,265
East Grand Rapids, Michigan, Public School District,
GO (d)(f):
1,610 5.75% due 5/01/2009 1,701
6,300 6% due 5/01/2009 6,699
Eaton Rapids, Michigan, Public Schools, School
Building and Site, GO (d):
2,000 5.25% due 5/01/2023 2,125
1,000 5% due 5/01/2026 1,034
1,250 5% due 5/01/2029 1,287
Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A (h):
385 5.375% due 7/01/2020 392
775 6% due 7/01/2020 831
1,800 Fowlerville, Michigan, Community Schools, School
District, GO, 5% due 5/01/2030 (c) 1,853
3,650 Gibraltar, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2028 (c) 3,762
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
Grand Blanc, Michigan, Community Schools, GO (c):
$ 1,000 5.625% due 5/01/2017 $ 1,078
1,000 5.625% due 5/01/2018 1,078
1,100 5.625% due 5/01/2019 1,186
Grand Rapids, Michigan, Building Authority Revenue
Bonds, Series A (a):
665 5.50% due 10/01/2012 (f) 725
805 5.50% due 10/01/2018 867
190 5.50% due 10/01/2019 205
1,500 Grand Rapids, Michigan, Sanitation Sewer System
Revenue Refunding and Improvement Bonds,
Series A, 5.50% due 1/01/2022 (c) 1,682
225 Harper Woods, Michigan, City School District,
School Building and Site, GO, Refunding, 5%
due 5/01/2034 (c) 231
4,500 Hartland, Michigan, Consolidated School District, GO,
6% due 5/01/2010 (c)(f) 4,871
1,275 Haslett, Michigan, Public School District, Building and
Site, GO, 5.625% due 11/01/2011 (e)(f) 1,389
2,000 Howell, Michigan, Public Schools, GO, 5.875%
due 5/01/2009 (e)(f) 2,120
2,660 Hudsonville, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (d) 2,739
3,975 Jackson, Michigan, Public Schools, GO, 5.375%
due 5/01/2010 (c)(f) 4,213
3,750 Kalamazoo, Michigan, Hospital Finance Authority,
Hospital Facility Revenue Refunding Bonds (Bronson
Methodist Hospital), 5.50% due 5/15/2008 (e)(f) 3,914
1,490 Kenowa Hills, Michigan, Public Schools, GO, Refunding,
5% due 5/01/2025 (c) 1,548
3,000 Kent, Michigan, Hospital Finance Authority Revenue
Bonds (Spectrum Health), Series A, 5.50%
due 7/15/2011 (e)(f) 3,259
1,440 Ludington, Michigan, Area School District, GO, 5.25%
due 5/01/2023 (e) 1,531
1,125 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Bonds (Hillsdale College Project),
5% due 3/01/2035 1,135
1,000 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Refunding Bonds (Hope College),
Series A, 5.90% due 4/01/2032 1,041
Michigan Higher Education Facilities Authority Revenue
Refunding Bonds (College for Creative Studies):
550 5.85% due 12/01/2022 579
1,000 5.90% due 12/01/2027 1,048
3,000 Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT, Series XVII-B,
5.40% due 6/01/2018 (a) 3,071
Michigan State Building Authority Revenue Bonds
(Facilities Program), Series II:
1,185 4.67% due 10/15/2009 (a)(b)(j) 1,036
1,675 4.77% due 10/15/2010 (a)(b)(j) 1,407
2,675 GO, RIB, Series 481, 6.93% due 4/15/2009 (e)(g) 2,976
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
Michigan State Building Authority, Revenue
Refunding Bonds:
$ 2,000 (Facilities Program), Series II, 5%
due 10/15/2029 (e) $ 2,056
5,000 (Facilities Program), Series II, 5%
due 10/15/2033 (a) 5,164
3,500 RIB, Series 517X, 6.93% due 10/15/2010 (d)(g) 4,042
Michigan State COP:
3,870 5.50% due 6/01/2010 (a)(f) 4,123
5,380 RIB, Series 530, 7.43% due 9/01/2011 (e)(g) 6,282
1,500 Michigan State Comprehensive Transportation Revenue
Refunding Bonds, Series A, 5.50% due 11/01/2018 (d) 1,606
460 Michigan State, HDA, Rental Housing Revenue Bonds,
AMT, Series A, 5.30% due 10/01/2037 (e) 463
1,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mid-Michigan Obligation Group),
Series A, 5.50% due 4/15/2018 (a) 1,058
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
1,300 (Crittenton Hospital), Series A, 5.625%
due 3/01/2027 1,368
1,250 (Sparrow Obligation Group), 5.625%
due 11/15/2031 1,293
2,000 Michigan State Hospital Finance Authority Revenue
Bonds (Mercy Health Services), Series R, 5.375%
due 8/15/2026 (a)(b) 2,029
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:
7,000 5% due 11/15/2036 (e) 7,169
8,000 (Ascension Health Credit), Series A, 6.125%
due 11/15/2009 (e)(f) 8,680
3,760 (Ascension Health Credit), Series A, 6.25%
due 11/15/2009 (e)(f) 4,095
3,215 (Mercy Health Services), Series X, 6%
due 8/15/2009 (e)(f) 3,475
1,000 (Mercy-Mount Clemens), Series A, 6%
due 5/15/2014 (e) 1,067
2,000 (Mercy-Mount Clemens), Series A, 5.75%
due 5/15/2029 (e) 2,111
1,000 (Trinity Health Credit), Series C, 5.375%
due 12/01/2023 1,042
3,450 (Trinity Health Credit), Series C, 5.375%
due 12/01/2030 3,594
1,900 (Trinity Health Credit), Series D, 5% due 8/15/2034 1,932
5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 5,993
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds:
9,500 (Detroit Edison Company), AMT, Series A, 5.55%
due 9/01/2029 (e) 9,945
2,000 (Detroit Edison Company Fund--Pollution),
Series AA, 6.95% due 5/01/2011 (c) 2,269
3,200 (Detroit Edison Pollution Control), Series C, 5.45%
due 9/01/2029 3,272
1,375 (Dow Chemical Company Project), AMT, 5.50%
due 12/01/2028 1,457
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 2,700 Michigan State Trunk Line Fund Revenue Bonds, 5%
due 9/01/2014 (c)(f) $ 2,873
6,500 Monroe County, Michigan, Economic Development
Corp., Limited Obligation Revenue Refunding Bonds
(Detroit Edison Co. Project), Series AA, 6.95%
due 9/01/2022 (c) 8,304
1,200 New Lothrop, Michigan, Area Public Schools, School
Building and Site, GO, 5% due 5/01/2035 (d) 1,236
600 Oak Park, Michigan, Street Improvement, GO, 5%
due 5/01/2030 (e) 621
1,000 Plainwell, Michigan, Community Schools, School
District, School Building and Site, GO, 5.50%
due 11/01/2012 (d)(f) 1,088
1,000 Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 3), 5.375% due 6/01/2017 (h) 1,038
1,000 Reed, Michigan, City Public Schools, School Building
and Site, GO, 5% due 5/01/2014 (d)(f) 1,063
1,900 Rochester, Michigan, Community School District, GO,
Series II, 5.50% due 11/01/2011 (e)(f) 2,059
1,500 Romulus, Michigan, Community Schools, GO, 5.75%
due 5/01/2009 (c)(f) 1,585
Saginaw Valley State University, Michigan, General
Revenue Refunding Bonds (c):
1,450 5% due 7/01/2024 1,504
1,000 5% due 7/01/2034 1,027
6,500 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Company), RIB,
Series 282, 8.68% due 8/01/2024 (a)(g) 7,436
2,650 South Lyon, Michigan, Community Schools, GO,
Series A, 5.75% due 5/01/2010 (e)(f) 2,845
Southfield, Michigan, Public Schools, School Building
and Site, GO, Series A (d):
1,950 5.25% due 5/01/2027 2,062
1,000 5% due 5/01/2029 1,030
1,000 Sparta, Michigan, Area Schools, School Building and
Site, GO, 5% due 5/01/2030 (c) 1,029
2,015 Sturgis, Michigan, Public School District, GO, Refunding,
5% due 5/01/2030 (c) 2,080
6,500 Wayne Charter County, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County), AMT,
Series A, 5.375% due 12/01/2015 (e) 6,741
1,180 Wayne Charter County, Michigan, Detroit
Metropolitan Airport, GO, Airport Hotel, Series A, 5%
due 12/01/2030 (e) 1,211
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield Michigan Insured Fund II, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan (concluded)
Wayne County, Michigan, Airport Authority Revenue
Bonds, AMT (e):
$ 7,100 (Detroit Metropolitan Wayne County Airport), 5%
due 12/01/2034 $ 7,202
4,090 DRIVERS, Series 1081-Z, 6.349%
due 6/01/2013 (g) 4,502
5,300 Wyoming, Michigan, Sewage Disposal System
Revenue Bonds, 5% due 6/01/2030 (e) 5,472
1,330 Zeeland, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (e) 1,370
Puerto Rico--6.3%
3,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series K, 5% due 7/01/2040 2,995
11,700 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A, 4.66% due 7/01/2036 (a)(j) 2,604
(In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
Puerto Rico Electric Power Authority, Power Revenue
Bonds:
$ 2,575 Series RR, 5% due 7/01/2035 (c) $ 2,669
2,270 Trust Receipts, Class R, Series 16 HH, 7.405%
due 7/01/2013 (d)(g) 2,658
Total Municipal Bonds
(Cost--$252,941)--153.9% 265,733
Shares
Held Short-Term Securities
1,764 CMA Michigan Municipal Money Fund, 3.10% (i)(k) 1,764
Total Short-Term Securities
(Cost--$1,764)--1.0% 1,764
Total Investments (Cost--$254,705*)--154.9% 267,497
Other Assets Less Liabilities--2.5% 4,236
Preferred Stock, at Redemption Value--(57.4%) (99,046)
----------
Net Assets Applicable to Common Stock--100.0% $ 172,687
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 254,537
===============
Gross unrealized appreciation $ 13,872
Gross unrealized depreciation (912)
---------------
Net unrealized appreciation $ 12,960
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) ACA Insured.
(i) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (4,849) $ 41
(j) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(k) Represents the current yield as of 4/30/2006.
o Forward interest rate swaps outstanding as of April 30, 2006
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 4.416% and
receive a floating rate based on a
1-week Bond Market Association rate
Broker, JPMorgan Chase Bank
Expires July 2026 $6,800 $ (42)
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield New York Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York--140.8%
$23,790 Albany County, New York, Airport Authority, Airport
Revenue Bonds, AMT, 6% due 12/15/2023 (c) $ 24,998
Buffalo, New York, School, GO, Series D (b):
1,250 5.50% due 12/15/2014 1,353
1,500 5.50% due 12/15/2016 1,627
4,300 Buffalo, New York, Sewer Authority, Revenue
Refunding Bonds, Series F, 6% due 7/01/2013 (b) 4,829
1,700 Dutchess County, New York, Resource Recovery
Agency Revenue Bonds (Solid Waste System-Forward),
Series A, 5.40% due 1/01/2013 (d) 1,821
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project) (c):
1,900 5.75% due 5/01/2020 2,076
5,250 5.75% due 5/01/2024 5,603
Huntington, New York, GO, Refunding (a):
485 5.50% due 4/15/2011 522
460 5.50% due 4/15/2012 502
455 5.50% due 4/15/2013 497
450 5.50% due 4/15/2014 494
450 5.50% due 4/15/2015 496
1,675 Ilion, New York, Central School District, GO, Series B,
5.50% due 6/15/2010 (b) 1,806
Long Island Power Authority, New York, Electric
System Revenue Bonds, Series A (a):
7,000 5% due 9/01/2029 7,221
8,500 5% due 9/01/2034 8,740
3,000 Long Island Power Authority, New York, Electric
System Revenue Refunding Bonds, Series B, 5%
due 12/01/2035 3,069
2,000 Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Bonds, Series A, 5.75%
due 1/01/2008 (d)(e) 2,096
10,000 Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Refunding Bonds,
Series B, 4.875% due 7/01/2018 (b)(h) 10,303
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series A:
5,000 5% due 11/15/2011 (b)(e) 5,319
1,015 5% due 11/15/2032 (c) 1,040
10,600 Metropolitan Transportation Authority, New York,
Dedicated Tax Fund, Revenue Refunding Bonds,
Series A, 5% due 11/15/2030 (d) 10,873
Metropolitan Transportation Authority, New York,
Revenue Bonds:
5,750 Series A, 5% due 11/15/2033 (a) 5,935
5,000 Series B, 5% due 11/15/2035 (d) 5,157
Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds:
28,900 RIB, Series 724X, 7.45% due 11/15/2032 (c)(g) 34,236
1,740 Series A, 5.125% due 11/15/2022 (b) 1,828
17,105 Series A, 5% due 11/15/2030 (c) 17,520
2,500 Series A, 5.25% due 11/15/2031 (b) 2,630
1,500 Series B, 5% due 11/15/2028 (d) 1,545
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 2,000 Metropolitan Transportation Authority, New York,
Service Contract Revenue Refunding Bonds, Series A,
5% due 7/01/2025 (b) $ 2,062
Metropolitan Transportation Authority, New York,
Transit Facilities Revenue Refunding Bonds,
Series C (c)(e):
2,885 5.125% due 1/01/2012 3,083
1,640 5.125% due 7/01/2012 1,757
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A:
2,545 5% due 11/15/2026 (c) 2,629
3,000 5% due 11/15/2032 (b) 3,081
Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds,
Series F (d):
6,235 5.25% due 11/15/2027 6,589
5,000 5% due 11/15/2031 5,126
Monroe County, New York, IDA Revenue Bonds
(Southview Towers Project), AMT:
1,400 6.125% due 2/01/2020 1,501
1,125 6.25% due 2/01/2031 1,209
1,160 Montgomery County, New York, IDA, Lease Revenue
Bonds (Hamilton Fulton Montgomery Board of
Cooperative Educational Services Project), Series A,
5% due 7/01/2034 (l) 1,187
10,830 Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75% due 8/01/2009 (c)(e) 11,708
1,500 New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, Series F-1,
4.65% due 11/01/2025 1,487
1,275 New York City, New York, City IDA, Civic Facility
Revenue Refunding Bonds (Nightingale--Bamford
School), 5.25% due 1/15/2018 (a) 1,356
7,710 New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6% due 11/01/2015 (c) 7,866
7,970 New York City, New York, City IDA, Parking Facility
Revenue Bonds (Royal Charter--New York
Presbyterian), 5.75% due 12/15/2029 (c) 8,780
1,500 New York City, New York, City IDA, Special Facility
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,574
500 New York City, New York, City Municipal Water
Finance Authority, Water and Sewer System,
Crossover Revenue Refunding Bonds, Series F, 5%
due 6/15/2029 (c) 510
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds:
12,500 RIB, Series 726X, 7.45% due 6/15/2027 (d)(g) 14,727
2,850 Series A, 5.75% due 6/15/2009 (b)(e) 3,046
17,200 Series B, 5.75% due 6/15/2007 (d)(e) 17,759
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
New York City, New York, City Municipal Water
Finance Authority, Water and Sewer System, Revenue
Refunding Bonds:
$ 5,000 5.50% due 6/15/2010 (d)(e) $ 5,383
1,250 Series A, 5.125% due 6/15/2034 (d) 1,293
5,500 Series A, 5% due 6/15/2035 (a) 5,635
7,015 Series B, 5.75% due 6/15/2026 (d) 7,103
4,000 Series B, 5% due 6/15/2036 (c) 4,116
4,700 VRDN, Series A, 3.67% due 6/15/2025 (b)(f) 4,700
5,200 VRDN, Series G, 3.70% due 6/15/2024 (b)(f) 5,200
1,020 New York City, New York, City Transit Authority,
Metropolitan Transportation Authority, Triborough,
COP, Series A, 5.625% due 1/01/2012 (a) 1,093
New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds:
6,805 Series B, 6.25% due 5/15/2010 (b)(e) 7,506
800 Series B, 6.25% due 5/15/2010 (e) 883
1,260 Series C, 5.50% due 5/01/2009 (e) 1,335
16,195 Series C, 5% due 2/01/2033 (b) 16,634
2,500 Series E, 5.25% due 2/01/2022 (d) 2,645
3,000 New York City, New York, City Transitional Finance
Authority, Future Tax Secured, Revenue Refunding
Bonds, Series D, 5.25% due 2/01/2021 (d) 3,174
1,000 New York City, New York, City Transitional Finance
Authority, Revenue Refunding Bonds, Series A, 5%
due 11/15/2026 (b) 1,030
New York City, New York, GO:
11,043 RIB, Series 725X, 7.45% due 3/15/2027 (c)(g) 12,933
3,000 Series A, 5.75% due 5/15/2010 (b)(e) 3,254
2,500 Series B, 5.75% due 8/01/2013 (d) 2,708
3,750 Series D, 5.25% due 10/15/2023 3,944
5,200 Series D, 5% due 11/01/2034 5,298
8,000 Series J, 5% due 5/15/2023 8,218
9,500 Series M, 5% due 4/01/2035 9,685
1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,210
3,000 VRDN, Sub-Series A-6, 3.67%
due 11/01/2026 (c)(f) 3,000
New York City, New York, GO, Refunding:
895 Series A, 6.375% due 5/15/2010 (b)(e) 991
70 Series B, 7% due 2/01/2018 (a) 71
3,100 VRDN, Series H, Sub-Series H-2, 3.70%
due 8/01/2013 (d)(f) 3,100
3,360 New York City, New York, IDA, Civic Facility Revenue
Bonds (Ethical Culture Fieldston School Project),
Sub-Series B-1, 4.50% due 6/01/2035 (l) 3,264
New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds (a):
6,500 DRIVERS, Series 1133Z, 6.379%
due 10/15/2012 (g) 7,311
3,000 Series A, 5% due 10/15/2029 3,109
24,200 Series A, 5% due 10/15/2032 25,043
400 Series A, 4.50% due 10/15/2033 389
4,250 New York City, New York, Trust for Cultural Resources,
Revenue Refunding Bonds (American Museum of
Natural History), Series A, 5% due 7/01/2036 (d) 4,385
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
New York Convention Center Development
Corporation, New York, Revenue Bonds (a):
$16,875 DRIVERS, Series 1247Z, 6.706%
due 11/15/2013 (g) $ 17,881
3,400 (Hotel Unit Fee Secured), 5% due 11/15/2035 3,501
1,000 New York State Dormitory Authority, Consolidated
Revenue Refunding Bonds (City University System),
Series 1, 5.625% due 1/01/2008 (c)(e) 1,051
New York State Dormitory Authority Revenue Bonds:
3,700 (Eger Health Care and Rehabilitation Center),
6.10% due 8/01/2037 (i) 4,021
1,500 (Long Island University), Series B, 5.25%
due 9/01/2028 (k) 1,561
2,000 (New School for Social Research), 5.75%
due 7/01/2007 (d)(e) 2,087
1,180 (New York State Rehabilitation Association),
Series A, 5.25% due 7/01/2019 (j) 1,243
1,000 (New York State Rehabilitation Association),
Series A, 5.125% due 7/01/2023 (j) 1,035
6,900 (School Districts Financing Program), Series E,
5.75% due 10/01/2030 (d) 7,528
1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,122
3,560 (State University Adult Facilities), Series B, 5.75%
due 5/15/2010 (c)(e) 3,868
1,780 (Upstate Community Colleges), Series A, 6%
due 7/01/2010 (c)(e) 1,954
New York State Dormitory Authority, Revenue
Refunding Bonds:
3,810 (City University System), Series C, 7.50%
due 7/01/2010 (b) 4,111
4,255 (Mental Health Services Facilities Improvement),
Series A, 5.75% due 2/15/2007 (d)(e) 4,409
1,370 (School District Financing Program), Series I,
5.75% due 10/01/2018 (d) 1,503
6,000 (Siena College), 5.75% due 7/01/2007 (d)(e) 6,257
4,500 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series A, 5%
due 3/15/2036 4,645
New York State Dormitory Authority, Supported Debt
Revenue Bonds (Mental Health Facilities), Series B:
1,570 5.25% due 2/15/2014 (e) 1,690
270 5.25% due 2/15/2023 284
1,000 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (j) 1,032
14,250 New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT,
Series A, 4.70% due 2/01/2024 (b) 14,112
3,500 New York State Environmental Facilities Corporation,
Special Obligation Revenue Refunding Bonds
(Riverbank State Park), 6.25% due 4/01/2012 (a) 3,930
1,000 New York State, GO, Series A, 4% due 3/15/2022 (b) 948
800 New York State Housing Finance Agency, State
Personal Income Tax Revenue Bonds (Economic
Development and Housing), Series A, 5%
due 9/15/2023 (d) 829
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 2,000 New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT, Series 130, 4.80%
due 10/01/2037 $ 1,948
9,530 New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 67,
5.80% due 10/01/2028 (d) 9,752
335 New York State Mortgage Agency Revenue Bonds,
DRIVERS, AMT, Series 295, 7.51% due 4/01/2030 (d)(g) 352
New York State Municipal Bond Bank Agency, Special
School Purpose Revenue Bonds, Series C:
3,470 5.25% due 6/01/2019 3,654
3,920 5.25% due 6/01/2020 4,099
6,000 New York State Thruway Authority, General Revenue
Bonds, Series F, 5% due 1/01/2030 (a) 6,196
New York State Thruway Authority, General Revenue
Refunding Bonds, Series G (c):
8,000 4.75% due 1/01/2029 8,047
17,750 4.75% due 1/01/2030 17,828
2,500 5% due 1/01/2030 2,589
2,820 New York State Thruway Authority, Highway and
Bridge Trust Fund Revenue Bonds, Series A, 6.25%
due 4/01/2011 (c) 3,103
New York State Thruway Authority, Local Highway and
Bridge Service Contract Revenue Bonds (e):
3,000 5.75% due 4/01/2010 (a) 3,249
2,000 Series A-2, 5.375% due 4/01/2008 (d) 2,080
2,170 New York State Thruway Authority, Local Highway and
Bridge Service Contract, Revenue Refunding Bonds,
6% due 4/01/2007 (d)(e) 2,258
3,045 New York State Thruway Authority, Second General
Highway and Bridge Trust Fund Revenue Bonds,
Series A, 5.25% due 4/01/2013 (d)(e) 3,285
1,455 New York State Thruway Authority, State Personal
Income Tax, Transportation Revenue Refunding Bonds,
Series A, 5% due 3/15/2024 (c) 1,514
New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds:
1,700 Series B, 5% due 3/15/2035 1,748
4,750 Series C-1, 5% due 3/15/2013 (d)(e) 5,052
5,000 (State Facilities), Series A-1, 5% due 3/15/2029 (b) 5,151
3,190 New York State Urban Development Corporation,
Revenue Refunding Bonds (Correctional Capital
Facilities), Series A, 6.50% due 1/01/2011 (c) 3,554
1,000 Niagara Falls, New York, City School District, COP,
Refunding (High School Facility), 5% due 6/15/2028 (c) 1,027
1,000 Niagara Falls, New York, GO (Water Treatment Plant),
AMT, 7.25% due 11/01/2010 (d) 1,130
2,705 Niagara, New York, Frontier Authority, Airport
Revenue Bonds (Buffalo Niagara International
Airport), Series B, 5.50% due 4/01/2019 (d) 2,846
1,260 North Country, New York, Development Authority,
Solid Waste Management System, Revenue Refunding
Bonds, 6% due 5/15/2015 (c) 1,399
(In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
North Hempstead, New York, GO, Refunding,
Series B (b):
$ 1,745 6.40% due 4/01/2013 $ 1,996
555 6.40% due 4/01/2017 655
1,665 Oneida County, New York, IDA, Civic Facilities
Revenue Bonds (Mohawk Valley), Series A, 5.20%
due 2/01/2013 (c) 1,730
2,500 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT, 137th Series,
5.125% due 7/15/2030 (c) 2,583
4,000 Port Authority of New York and New Jersey,
Consolidated Revenue Refunding Bonds, AMT, 119th
Series, 5.50% due 9/15/2016 (b) 4,063
15,000 Port Authority of New York and New Jersey
Revenue Refunding Bonds, AMT, 120th Series, 6%
due 10/15/2032 (d) 15,593
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds, AMT (d):
1,750 DRIVERS, Series 192, 7.343% due 12/01/2025 (g) 1,848
5,080 DRIVERS, Series 278, 7.343% due 12/01/2022 (g) 5,555
14,750 (JFK International Air Terminal), Series 6, 6.25%
due 12/01/2010 16,010
7,175 (JFK International Air Terminal LLC), Series 6,
6.25% due 12/01/2011 7,877
4,425 (Special Project--JFK International Air Terminal),
Series 6, 6.25% due 12/01/2013 4,926
7,380 (Special Project--JFK International Air Terminal),
Series 6, 6.25% due 12/01/2014 8,276
1,255 Rensselaer County, New York, IDA, Civic Facility
Revenue Bonds (Rensselaer Polytechnic Institute),
Series B, 5.50% due 8/01/2022 (a) 1,329
4,625 Suffolk County, New York, IDA, IDR (Keyspan--Port
Jefferson), AMT, 5.25% due 6/01/2027 4,729
Suffolk County, New York, IDA, Solid Waste Disposal
Facility, Revenue Refunding Bonds (Ogden Martin
System Huntington Project), AMT (a):
8,530 6% due 10/01/2010 9,253
9,170 6.15% due 10/01/2011 10,134
6,470 6.25% due 10/01/2012 7,262
2,250 Suffolk County, New York, Public Improvement, GO,
Series B, 4.50% due 11/01/2024 (d) 2,225
1,155 Suffolk County, New York, Water Authority, Waterworks
Revenue Bonds, Series C, 4.50% due 6/01/2029 (d) 1,131
Tobacco Settlement Financing Corporation of New
York Revenue Bonds:
5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,288
5,000 Series A-1, 5.25% due 6/01/2021 (a) 5,281
2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,110
2,000 Series C-1, 5.50% due 6/01/2021 2,139
1,900 Series C-1, 5.50% due 6/01/2022 2,027
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield New York Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York (concluded)
$ 2,305 Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Refunding Bonds, Series Y,
6% due 1/01/2012 (d)(h) $ 2,506
Triborough Bridge and Tunnel Authority, New York,
Revenue Refunding Bonds (d):
7,000 5.25% due 11/15/2023 7,430
19,675 5% due 11/15/2032 20,160
2,265 Series A, 5% due 1/01/2012 (e) 2,406
1,500 Series B, 5% due 11/15/2032 1,537
Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds:
2,465 5% due 11/15/2028 (a) 2,540
6,000 Series A, 5.25% due 11/15/2030 (d) 6,317
2,010 Yonkers, New York, GO, Series A, 5.75%
due 10/01/2010 (b) 2,196
Guam--0.8%
A.B. Won Guam International Airport Authority,
General Revenue Refunding Bonds, AMT, Series C (d):
2,240 5.25% due 10/01/2021 2,329
2,050 5.25% due 10/01/2022 2,131
Puerto Rico--11.9%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue Bonds:
2,265 Series G, 5.25% due 7/01/2019 (b) 2,421
1,000 Series G, 5.25% due 7/01/2021 (b) 1,066
1,250 Trust Receipts, Class R, Series B, 7.659%
due 7/01/2035 (d)(g) 1,477
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
3,000 Series D, 5.75% due 7/01/2012 (e) 3,310
2,000 Series K, 5% due 7/01/2035 (n) 2,065
4,000 Series L, 5.25% due 7/01/2041 (j) 4,355
(In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (o):
$22,030 4.62% due 7/01/2031 (b) $ 6,336
3,900 4.67% due 7/01/2035 (a) 916
8,000 4.77% due 7/01/2043 (a) 1,253
4,500 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series B, 5%
due 7/01/2041 (j) 4,613
7,480 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5.25% due 7/01/2020 7,783
Puerto Rico Convention Center District Authority,
Hotel Occupancy Tax Revenue Bonds, Series A:
4,000 5% due 7/01/2031 (a) 4,162
3,400 4.50% due 7/01/2036 (j) 3,301
Puerto Rico Electric Power Authority, Power Revenue
Bonds:
4,750 Series NN, 5.125% due 7/01/2029 4,880
7,315 Series RR, 5% due 7/01/2029 (j) 7,565
7,095 Series RR, 5% due 7/01/2030 (l) 7,337
Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds, Series E:
2,300 5.50% due 2/01/2012 (e) 2,493
700 5.50% due 8/01/2029 734
Total Municipal Bonds
(Cost--$826,890)--153.5% 848,918
Shares
Held Short-Term Securities
722 CMA New York Municipal Money Fund, 3.10% (m)(p) 722
Total Short-Term Securities
(Cost--$722)--0.1% 722
Total Investments (Cost--$827,612*)--153.6% 849,640
Other Assets Less Liabilities--1.4% 7,515
Preferred Stock, at Redemption Value--(55.0%) (304,216)
----------
Net Assets Applicable to Common Stock--100.0% $ 552,939
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 827,707
===============
Gross unrealized appreciation $ 25,639
Gross unrealized depreciation (3,706)
---------------
Net unrealized appreciation $ 21,933
===============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) Escrowed to maturity.
(i) FHA Insured.
(j) CIFG Insured.
(k) Radian Insured.
(l) XL Capital Insured.
(m) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New York Municipal Money Fund (379) $17
(n) AGC Insured.
(o) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(p) Represents the current yield as of 4/30/2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Net Assets
MuniYield
MuniYield MuniYield California
Arizona California Insured
As of April 30, 2006 Fund, Inc. Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 103,028,652 $ 485,986,057 $ 779,619,165
Investments in affiliated securities, at value** 923 16,387,828 35,826
Cash 16,940 55,936 32,396
Receivable for securities sold 90,000 -- 5,750,520
Interest receivable 1,928,401 7,466,881 12,444,170
Prepaid expenses 6,475 10,637 39,425
--------------- --------------- ---------------
Total assets 105,071,391 509,907,339 797,921,502
--------------- --------------- ---------------
Liabilities
Payable for securities purchased 1,020,520 22,469,179 18,459,819
Dividends payable to Common Stock shareholders -- 129,765 240,478
Offering cost payable -- 10,000 10,000
Payable to investment adviser 39,756 183,930 298,450
Payable to other affiliates 1,266 5,892 5,376
Accrued expenses 40,100 89,023 118,583
--------------- --------------- ---------------
Total liabilities 1,101,642 22,887,789 19,132,706
--------------- --------------- ---------------
Preferred Stock
Preferred Stock, at redemption value of AMPS+++ at $25,000 per
share liquidation preference*** 40,321,447 175,133,907 275,180,576
--------------- --------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 63,648,302 $ 311,885,643 $ 503,608,220
=============== =============== ===============
Net Assets Consist of
Undistributed investment income--net $ 602,493 $ 1,596,674 $ 2,979,554
Undistributed (accumulated) realized capital gains (losses)--net 124,132 (3,465,055) (14,610,883)
Unrealized appreciation--net 3,014,140 12,155,619 17,578,763
--------------- --------------- ---------------
Total accumulated earnings--net 3,740,765 10,287,238 5,947,434
Common Stock, par value $.10 per share++ 450,788 2,129,526 3,436,120
Paid-in capital in excess of par 59,456,749 299,468,879 494,224,666
--------------- --------------- ---------------
Net Assets $ 63,648,302 $ 311,885,643 $ 503,608,220
=============== =============== ===============
Net asset value per share of Common Stock $ 14.12 $ 14.65 $ 14.66
=============== =============== ===============
Market price $ 15.55 $ 13.30 $ 14.64
=============== =============== ===============
* Identified cost in unaffiliated securities $ 100,014,512 $ 473,830,438 $ 762,040,402
=============== =============== ===============
** Identified cost in affiliated securities $ 923 $ 16,387,828 $ 35,826
=============== =============== ===============
*** Preferred Stock authorized, issued and outstanding:
Series A Shares, par value $.10 per share 518 2,400 1,800
=============== =============== ===============
Series B Shares, par value $.10 per share 694 2,400 1,800
=============== =============== ===============
Series C Shares, par value $.10 per share 400 800 1,600
=============== =============== ===============
Series D Shares, par value $.10 per share -- 1,400 2,000
=============== =============== ===============
Series E Shares, par value $.10 per share -- -- 2,000
=============== =============== ===============
Series F Shares, par value $.10 per share -- -- 1,800
=============== =============== ===============
++ Common Stock issued and outstanding 4,507,879 21,295,255 34,361,200
=============== =============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Net Assets (concluded)
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured II Insured
As of April 30, 2006 Fund Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 301,157,556 $ 265,732,999 $ 848,917,566
Investments in affiliated securities, at value** 5,344,705 1,763,576 722,374
Unrealized appreciation on forward interest rate swaps 453,827 -- --
Cash 54,844 90,296 64,861
Receivable for securities sold 10,000 -- 7,398,955
Interest receivable 3,829,301 5,059,701 13,898,997
Prepaid expenses 10,989 11,052 22,491
--------------- --------------- ---------------
Total assets 310,861,222 272,657,624 871,025,244
--------------- --------------- ---------------
Liabilities
Unrealized depreciation on forward interest rate swaps -- 41,698 --
Payable for securities purchased 90,937 622,664 13,130,022
Dividends payable to Common Stock shareholders/Common Shareholders 47,569 82,381 286,591
Offering cost payable -- 10,000 --
Payable to investment adviser 118,034 103,042 328,916
Payable to other affiliates 3,794 3,339 9,048
Accrued expenses 60,433 60,715 115,404
--------------- --------------- ---------------
Total liabilities 320,767 923,839 13,869,981
--------------- --------------- ---------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value of AMPS+++ at
$25,000 per share liquidation preference*** 110,039,304 99,046,327 304,216,478
--------------- --------------- ---------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 200,501,151 $ 172,687,458 $ 552,938,785
=============== =============== ===============
Net Assets Consist of
Undistributed investment income--net $ 1,505,334 $ 1,121,078 $ 4,333,738
Accumulated realized capital losses--net (9,360,283) (6,555,611) (34,435,705)
Unrealized appreciation--net 12,470,299 12,750,308 22,028,097
--------------- --------------- ---------------
Total accumulated earnings (losses)--net 4,615,350 7,315,775 (8,073,870)
Common Stock/Shares, par value $.10 per share++ 1,355,802 1,206,972 3,944,596
Paid-in capital in excess of par 194,529,999 164,164,711 557,068,059
--------------- --------------- ---------------
Net Assets $ 200,501,151 $ 172,687,458 $ 552,938,785
=============== =============== ===============
Net asset value per share of Common Stock/Shares $ 14.79 $ 14.31 $ 14.02
=============== =============== ===============
Market price $ 13.86 $ 14.03 $ 13.60
=============== =============== ===============
* Identified cost in unaffiliated securities $ 289,141,084 $ 252,940,993 $ 826,889,469
=============== =============== ===============
** Identified cost in affiliated securities $ 5,344,705 $ 1,763,576 $ 722,374
=============== =============== ===============
*** Preferred Stock/Shares authorized, issued and outstanding:
Series A Shares, par value $.05 per share 2,200 2,200 1,700
=============== =============== ===============
Series B Shares, par value $.05 per share 1,600 -- 1,700
=============== =============== ===============
Series B Shares, par value $.10 per share -- 1,360 --
=============== =============== ===============
Series C Shares, par value $.05 per share 600 -- 2,800
=============== =============== ===============
Series C Shares, par value $.10 per share -- 400 --
=============== =============== ===============
Series D Shares, par value $.05 per share -- -- 1,960
=============== =============== ===============
Series E Shares, par value $.05 per share -- -- 2,200
=============== =============== ===============
Series F Shares, par value $.10 per share -- -- 1,800
=============== =============== ===============
++ Common Stock/Shares issued and outstanding 13,558,024 12,069,721 39,445,962
=============== =============== ===============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Operations
MuniYield
MuniYield MuniYield California
Arizona California Insured
For the Six Months Ended April 30, 2006 Fund, Inc. Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 2,635,331 $ 11,930,079 $ 19,143,365
Dividends from affiliates 10,997 65,070 45,054
--------------- --------------- ---------------
Total income 2,646,328 11,995,149 19,188,419
--------------- --------------- ---------------
Expenses
Investment advisory fees 259,931 1,216,894 1,949,265
Commission fees 51,020 225,996 357,105
Accounting services 30,287 80,093 119,778
Transfer agent fees 25,120 39,082 46,627
Professional fees 25,307 27,325 31,655
Printing and shareholder reports 3,625 14,696 23,548
Listing fees 965 8,175 10,685
Custodian fees 4,489 13,135 19,993
Pricing fees 4,455 9,001 12,331
Directors' fees and expenses 7,013 12,078 16,295
Other 17,108 29,667 30,523
--------------- --------------- ---------------
Total expenses before reimbursement 429,320 1,676,142 2,617,805
Reimbursement of expenses (2,279) (10,268) (7,911)
--------------- --------------- ---------------
Total expenses after reimbursement 427,041 1,665,874 2,609,894
--------------- --------------- ---------------
Investment income--net 2,219,287 10,329,275 16,578,525
--------------- --------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain on investments--net 306,228 1,045,807 2,805,152
Change in unrealized appreciation on investments--net (747,236) (3,140,317) (6,325,440)
--------------- --------------- ---------------
Total realized and unrealized loss--net (441,008) (2,094,510) (3,520,288)
--------------- --------------- ---------------
Dividends & Distributions to Preferred Stock Shareholders
Dividends and distributions to Preferred Stock shareholders from:
Investment income--net (519,314) (2,534,225) (3,873,858)
Realized gain--net (84,465) -- --
--------------- --------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (603,779) (2,534,225) (3,873,858)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 1,174,500 $ 5,700,540 $ 9,184,379
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Operations (concluded)
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured II Insured
For the Six Months Ended April 30, 2006 Fund Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 7,738,237 $ 6,793,301 $ 21,100,605
Dividends from affiliates 35,678 41,471 16,874
--------------- --------------- ---------------
Total income 7,773,915 6,834,772 21,117,479
--------------- --------------- ---------------
Expenses
Investment advisory fees 774,010 680,278 2,147,244
Commission fees 140,161 129,811 380,863
Accounting services 58,330 53,260 126,455
Transfer agent fees 34,392 35,691 62,223
Professional fees 34,302 27,650 32,681
Printing and shareholder reports 9,883 8,888 24,850
Listing fees 8,298 8,347 11,973
Custodian fees 10,429 8,549 22,422
Pricing fees 8,910 7,572 13,998
Directors'/Trustees' fees and expenses 9,767 9,265 16,880
Other 23,159 28,361 29,561
--------------- --------------- ---------------
Total expenses before reimbursement 1,111,641 997,672 2,869,150
Reimbursement of expenses (6,895) (8,533) (2,930)
--------------- --------------- ---------------
Total expenses after reimbursement 1,104,746 989,139 2,866,220
--------------- --------------- ---------------
Investment income--net 6,669,169 5,845,633 18,251,259
--------------- --------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 684,034 903,166 (1,031,883)
Forward interest rate swaps--net (182) (107,522) --
--------------- --------------- ---------------
Total realized gain (loss)--net 683,852 795,644 (1,031,883)
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (1,840,699) (3,043,721) (6,592,865)
Forward interest rate swaps--net 208,214 (41,698) --
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation--net (1,632,485) (3,085,419) (6,592,865)
--------------- --------------- ---------------
Total realized and unrealized loss--net (948,633) (2,289,775) (7,624,748)
--------------- --------------- ---------------
Dividends to Preferred Stock Shareholders/Preferred Shareholders
Investment income--net (1,628,330) (1,438,132) (4,377,941)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 4,092,206 $ 2,117,726 $ 6,248,570
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield Arizona Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 2,219,287 $ 4,351,984
Realized gain--net 306,228 686,663
Change in unrealized appreciation--net (747,236) (2,891,468)
Dividends and distributions to Preferred Stock shareholders (603,779) (613,942)
--------------- ---------------
Net increase in net assets resulting from operations 1,174,500 1,533,237
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (1,898,874) (4,139,688)
Realized gain--net (523,554) (98,063)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders (2,422,428) (4,237,751)
--------------- ---------------
Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends 223,571 347,232
Offering and underwriting costs resulting from issuance of Preferred Stock -- (229,567)
Adjustment of offering costs resulting from issuance of Preferred Stock 42,343 --
--------------- ---------------
Net increase in net assets resulting from stock transactions 265,914 117,665
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (982,014) (2,586,849)
Beginning of period 64,630,316 67,217,165
--------------- ---------------
End of period* $ 63,648,302 $ 64,630,316
=============== ===============
* Undistributed investment income--net $ 602,493 $ 801,394
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield California Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 10,329,275 $ 19,769,525
Realized gain--net 1,045,807 3,286,924
Change in unrealized appreciation--net (3,140,317) (12,950,108)
Dividends to Preferred Stock shareholders (2,534,225) (2,698,791)
--------------- ---------------
Net increase in net assets resulting from operations 5,700,540 7,407,550
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (7,538,520) (18,399,100)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (7,538,520) (18,399,100)
--------------- ---------------
Stock Transactions
Offering and underwriting costs resulting from issuance of Preferred Stock -- (504,510)
Adjustment of offering costs resulting from issuance of Preferred Stock 15,461 --
--------------- ---------------
Net increase (decrease) in net assets resulting from stock transactions 15,461 (504,510)
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (1,822,519) (11,496,060)
Beginning of period 313,708,162 325,204,222
--------------- ---------------
End of period* $ 311,885,643 $ 313,708,162
=============== ===============
* Undistributed investment income--net $ 1,596,674 $ 1,340,144
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield California Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 16,578,525 $ 32,771,189
Realized gain--net 2,805,152 4,558,434
Change in unrealized appreciation--net (6,325,440) (16,405,544)
Dividends to Preferred Stock shareholders (3,873,858) (4,367,576)
--------------- ---------------
Net increase in net assets resulting from operations 9,184,379 16,556,503
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (14,637,871) (30,100,411)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (14,637,871) (30,100,411)
--------------- ---------------
Stock Transactions
Offering and underwriting costs resulting from issuance of Preferred Stock -- (595,687)
Adjustment of offering costs resulting from the issuance of Preferred Stock (4,270) --
--------------- ---------------
Net decrease in net assets resulting from stock transactions (4,270) (595,687)
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (5,457,762) (14,139,595)
Beginning of period 509,065,982 523,205,577
--------------- ---------------
End of period* $ 503,608,220 $ 509,065,982
=============== ===============
* Undistributed investment income--net $ 2,979,554 $ 4,912,758
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield Florida Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 6,669,169 $ 13,339,050
Realized gain--net 683,852 1,319,459
Change in unrealized appreciation--net (1,632,485) (4,748,326)
Dividends to Preferred Shareholders (1,628,330) (1,961,036)
--------------- ---------------
Net increase in net assets resulting from operations 4,092,206 7,949,147
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (5,721,200) (12,521,937)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (5,721,200) (12,521,937)
--------------- ---------------
Share Transactions
Value of shares issued to Common Shareholders in reinvestment of dividends 91,289 --
Offering and underwriting costs resulting from issuance of Preferred Shares -- (280,155)
Adjustment of offering costs resulting from issuance of Preferred Shares (3,184) --
--------------- ---------------
Net increase (decrease) in net assets resulting from share transactions 88,105 (280,155)
--------------- ---------------
Net Assets Applicable to Common Shares
Total decrease in net assets applicable to Common Shares (1,540,889) (4,852,945)
Beginning of period 202,042,040 206,894,985
--------------- ---------------
End of period* $ 200,501,151 $ 202,042,040
=============== ===============
* Undistributed investment income--net $ 1,505,334 $ 2,185,695
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield Michigan Insured Fund II, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 5,845,633 $ 11,882,846
Realized gain--net 795,644 2,125,649
Change in unrealized appreciation/depreciation--net (3,085,419) (9,184,637)
Dividends to Preferred Stock shareholders (1,438,132) (1,750,817)
--------------- ---------------
Net increase in net assets resulting from operations 2,117,726 3,073,041
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (4,946,350) (10,914,778)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (4,946,350) (10,914,778)
--------------- ---------------
Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends 227,419 112,030
Offering and underwriting costs resulting from the issuance of Preferred Stock -- (229,567)
Adjustment of offering costs resulting from the issuance of Preferred Stock 24,274 --
--------------- ---------------
Net increase (decrease) in net assets resulting from stock transactions 251,693 (117,537)
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (2,576,931) (7,959,274)
Beginning of period 175,264,389 183,223,663
--------------- ---------------
End of period* $ 172,687,458 $ 175,264,389
=============== ===============
* Undistributed investment income--net $ 1,121,078 $ 1,659,927
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Changes in Net Assets MuniYield New York Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2006 2005
Operations
Investment income--net $ 18,251,259 $ 36,961,564
Realized gain (loss)--net (1,031,883) 875,940
Change in unrealized appreciation--net (6,592,865) (20,848,183)
Dividends to Preferred Stock shareholders (4,377,941) (5,032,367)
--------------- ---------------
Net increase in net assets resulting from operations 6,248,570 11,956,954
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (15,778,385) (33,134,608)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (15,778,385) (33,134,608)
--------------- ---------------
Stock Transactions
Offering and underwriting costs resulting from issuance of Preferred Stock -- (595,687)
Adjustment of offering costs resulting from issuance of Preferred Stock (5,720) --
--------------- ---------------
Net decrease in net assets resulting from stock transactions (5,720) (595,687)
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (9,535,535) (21,773,341)
Beginning of period 562,474,320 584,247,661
--------------- ---------------
End of period* $ 552,938,785 $ 562,474,320
=============== ===============
* Undistributed investment income--net $ 4,333,738 $ 6,238,805
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield Arizona Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.39 $ 15.04 $ 14.64 $ 14.53 $ 14.19
---------- ---------- ---------- ---------- ----------
Investment income--net .49++ .97++ .98++ 1.00++ .97
Realized and unrealized gain (loss)--net (.09) (.49) .40 .05 .26
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.12) (.14) (.06) (.06) (.09)
Realized gain--net (.02) --++++ -- -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations .26 .34 1.32 .99 1.14
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.42) (.92) (.92) (.88) (.80)
Realized gain--net (.12) (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.54) (.94) (.92) (.88) (.80)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.05) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Stock .01 -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.12 $ 14.39 $ 15.04 $ 14.64 $ 14.53
========== ========== ========== ========== ==========
Market price per share, end of period $ 15.55 $ 16.03 $ 15.10 $ 14.13 $ 13.25
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.75%+++ 1.91% 9.40% 7.19% 8.60%
========== ========== ========== ========== ==========
Based on market price per share .59%+++ 13.07% 13.80% 13.45% 6.54%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.33%* 1.20% 1.19% 1.18% 1.28%
========== ========== ========== ========== ==========
Total expenses*** 1.34%* 1.20% 1.20% 1.19% 1.28%
========== ========== ========== ========== ==========
Total investment income--net*** 6.93%* 6.54% 6.65% 6.79% 6.86%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.62%* .91% .42% .42% .61%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.31%* 5.63% 6.23% 6.37% 6.25%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.60%* 1.90% .92% .91% 1.26%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield Arizona Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 63,648 $ 64,630 $ 67,217 $ 65,234 $ 64,699
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 40,300 $ 40,300 $ 30,300 $ 30,300 $ 30,300
========== ========== ========== ========== ==========
Portfolio turnover 22.20% 28.08% 23.69% 26.99% 42.51%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,579 $ 2,604 $ 3,218 $ 3,153 $ 3,135
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 312 $ 462 $ 222 $ 220 $ 305
========== ========== ========== ========== ==========
Series B--Investment income--net $ 310 $ 473 $ 236 $ 237 $ 324
========== ========== ========== ========== ==========
Series C++++++--Investment income--net $ 356 $ 99 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Based on average shares outstanding.
++++ Amount is less than $(.01) per share.
++++++ Series C was issued on August 31, 2005.
+++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield California Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.73 $ 15.27 $ 15.17 $ 15.14 $ 15.22
---------- ---------- ---------- ---------- ----------
Investment income--net* .49 .93 1.02 1.06 1.07
Realized and unrealized gain (loss)--net (.10) (.46) .12 .04 (.06)
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.12) (.13) (.07) (.10) (.12)
Realized gain--net -- -- -- --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .27 .34 1.07 1.00 .89
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.35) (.86) (.97) (.97) (.97)
Realized gain--net -- -- -- --++ --++
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.35) (.86) (.97) (.97) (.97)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Stock --++++++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.65 $ 14.73 $ 15.27 $ 15.17 $ 15.14
========== ========== ========== ========== ==========
Market price per share, end of period $ 13.30 $ 13.37 $ 14.43 $ 14.15 $ 14.46
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.13%+++++ 2.59% 7.74% 7.14% 6.14%
========== ========== ========== ========== ==========
Based on market price per share 2.15%+++++ (1.46%) 9.16% 4.64% 2.18%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Expenses, net of reimbursement*** 1.06%+++ .98% .96% .95% .99%
========== ========== ========== ========== ==========
Total expenses*** 1.07%+++ .98% .96% .96% .99%
========== ========== ========== ========== ==========
Total investment income--net*** 6.60%+++ 6.16% 6.79% 6.93% 7.13%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.62%+++ .84% .44% .63% .77%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 4.98%+++ 5.32% 6.35% 6.30% 6.36%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.92%+++ 1.88% 1.02% 1.46% 1.76%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield California Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 311,886 $ 313,708 $ 325,204 $ 323,155 $ 322,345
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 175,000 $ 175,000 $ 140,000 $ 140,000 $ 140,000
========== ========== ========== ========== ==========
Portfolio turnover 25.39% 53.99% 33.60% 20.24% 49.87%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,782 $ 2,793 $ 3,323 $ 3,308 $ 3,302
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 396 $ 482 $ 270 $ 569 $ 607
========== ========== ========== ========== ==========
Series B--Investment income--net $ 343 $ 451 $ 241 $ 217 $ 322
========== ========== ========== ========== ==========
Series C--Investment income--net $ 340 $ 453 $ 250 $ 207 $ 292
========== ========== ========== ========== ==========
Series D++++--Investment income--net $ 350 $ 70 -- -- --
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Series D was issued on September 21, 2005.
++++++ Amount is less than $.01 per share.
+++ Annualized.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield California Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.82 $ 15.23 $ 15.10 $ 15.26 $ 15.44
---------- ---------- ---------- ---------- ----------
Investment income--net .48+++ .95+++ .94+++ .95+++ .95
Realized and unrealized gain (loss)--net (.10) (.33) .13 (.18) (.22)
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.11) (.13) (.06) (.06) (.09)
Realized gain--net -- -- -- -- --++++
---------- ---------- ---------- ---------- ----------
Total from investment operations .27 .49 1.01 .71 .64
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.43) (.88) (.88) (.87) (.81)
Realized gain--net -- -- -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.43) (.88) (.88) (.87) (.82)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Stock --++++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.66 $ 14.82 $ 15.23 $ 15.10 $ 15.26
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.64 $ 14.16 $ 13.73 $ 13.82 $ 13.68
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.84%+++++ 3.55% 7.54% 5.29% 4.68%
========== ========== ========== ========== ==========
Based on market price per share 6.44%+++++ 9.75% 5.93% 7.50% .20%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement and excluding
reorganization expenses*** 1.03%* .96% .95% .94% .96%
========== ========== ========== ========== ==========
Total expenses, excluding reorganization expenses*** 1.03%* .96% .95% .94% .96%
========== ========== ========== ========== ==========
Total expenses*** 1.03%* .96% .95% .94% 1.00%
========== ========== ========== ========== ==========
Total investment income--net*** 6.54%* 6.29% 6.29% 6.20% 6.38%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.53%* .84% .43% .37% .56%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.01%* 5.45% 5.86% 5.83% 5.82%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.84%* 1.86% .96% .85% 1.25%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield California Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 503,608 $ 509,066 $ 523,206 $ 518,786 $ 524,485
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 275,000 $ 275,000 $ 230,000 $ 230,000 $ 230,000
========== ========== ========== ========== ==========
Portfolio turnover 21.82% 42.13% 68.05% 52.17% 77.13%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,831 $ 2,851 $ 3,275 $ 3,256 $ 3,280
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 343 $ 478 $ 246 $ 216 $ 359
========== ========== ========== ========== ==========
Series B--Investment income--net $ 335 $ 463 $ 238 $ 212 $ 324
========== ========== ========== ========== ==========
Series C--Investment income--net $ 339 $ 441 $ 224 $ 204 $ 320
========== ========== ========== ========== ==========
Series D--Investment income--net $ 389 $ 480 $ 249 $ 242 $ 203
========== ========== ========== ========== ==========
Series E--Investment income--net $ 339 $ 448 $ 236 $ 196 $ 201
========== ========== ========== ========== ==========
Series F++--Investment income--net $ 364 $ 62 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Series F was issued on September 21, 2005.
++++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield Florida Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.91 $ 15.27 $ 14.97 $ 14.97 $ 14.81
------------ ---------- ---------- ---------- ----------
Investment income--net .49+++ .98+++ 1.00+++ 1.06+++ 1.03
Realized and unrealized gain (loss)--net (.07) (.26) .29 (.07) .09
Less dividends and distributions to Preferred
Shareholders:
Investment income--net (.12) (.14) (.07) (.07) (.09)
Realized gain--net -- -- -- -- --++
------------ ---------- ---------- ---------- ----------
Total from investment operations .30 .58 1.22 .92 1.03
------------ ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.42) (.92) (.92) (.92) (.87)
Realized gain--net -- -- -- -- --++
------------ ---------- ---------- ---------- ----------
Total dividends and distributions to Common Shareholders (.42) (.92) (.92) (.92) (.87)
------------ ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Shares -- (.02) -- -- --
------------ ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Shares --++ -- -- -- --
------------ ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.79 $ 14.91 $ 15.27 $ 14.97 $ 14.97
============ ========== ========== ========== ==========
Market price per share, end of period $ 13.86 $ 14.93 $ 14.28 $ 13.80 $ 13.34
============ ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.11%+++++ 3.98% 8.99% 6.76% 7.80%
============ ========== ========== ========== ==========
Based on market price per share (4.44%)+++++ 11.34% 10.57% 10.44% 1.77%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.10%* 1.05% 1.03% 1.04% 1.06%
============ ========== ========== ========== ==========
Total expenses*** 1.11%* 1.05% 1.03% 1.04% 1.06%
============ ========== ========== ========== ==========
Total investment income--net*** 6.65%* 6.46% 6.67% 7.01% 7.00%
============ ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 1.62%* .95% .48% .45% .64%
============ ========== ========== ========== ==========
Investment income--net, to Common Shareholders 5.03%* 5.51% 6.19% 6.56% 6.36%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 2.99%* 2.01% 1.03% .97% 1.34%
============ ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield Florida Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Shares, end of period
(in thousands) $ 200,501 $ 202,042 $ 206,895 $ 202,890 $ 202,919
========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period (in thousands) $ 110,000 $ 110,000 $ 95,000 $ 95,000 $ 95,000
========== ========== ========== ========== ==========
Portfolio turnover 27.72% 41.96% 36.11% 40.45% 39.54%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,823 $ 2,837 $ 3,178 $ 3,136 $ 3,136
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 374 $ 507 $ 254 $ 247 $ 337
========== ========== ========== ========== ==========
Series B--Investment income--net $ 365 $ 487 $ 263 $ 242 $ 333
========== ========== ========== ========== ==========
Series C++++--Investment income--net $ 371 $ 110 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Shareholders.
++ Amount is less than $(.01) per share.
++++ Series C was issued on August 31, 2005.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield Michigan Insured Fund II, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.54 $ 15.21 $ 15.21 $ 14.91 $ 14.97
---------- ---------- ---------- ---------- ----------
Investment income--net .48+++ .99+++ 1.00+++ 1.02+++ 1.00
Realized and unrealized gain (loss)--net (.18) (.58) --++++ .24 (.07)
Less dividends to Preferred Stock shareholders from
investment income (.12) (.15) (.07) (.07) (.10)
---------- ---------- ---------- ---------- ----------
Total from investment operations .18 .26 .93 1.19 .83
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from
investment income (.41) (.91) (.93) (.89) (.89)
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the issuance
of Preferred Stock --+++++++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.31 $ 14.54 $ 15.21 $ 15.21 $ 14.91
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.03 $ 14.41 $ 14.54 $ 13.75 $ 13.45
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.26%+++++ 1.73% 6.78% 8.82% 6.36%
========== ========== ========== ========== ==========
Based on market price per share .18%+++++ 5.47% 12.91% 9.06% 3.70%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.14%* 1.07% 1.05% 1.01% 1.12%
========== ========== ========== ========== ==========
Total expenses*** 1.15%* 1.07% 1.07% 1.02% 1.12%
========== ========== ========== ========== ==========
Total investment income--net*** 6.72%* 6.57% 6.61% 6.73% 6.91%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.65%* .97% .47% .47% .66%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 5.07%* 5.60% 6.14% 6.26% 6.25%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.93%* 1.96% .96% .97% 1.36%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield Michigan Insured Fund II, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 172,687 $ 175,264 $ 183,224 $ 183,237 $ 179,607
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 99,000 $ 99,000 $ 89,000 $ 89,000 $ 89,000
========== ========== ========== ========== ==========
Portfolio turnover 5.38% 23.18% 39.26% 30.84% 41.77%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,744 $ 2,770 $ 3,059 $ 3,059 $ 3,018
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 366 $ 488 $ 236 $ 243 $ 343
========== ========== ========== ========== ==========
Series B--Investment income--net $ 356 $ 494 $ 247 $ 245 $ 136
========== ========== ========== ========== ==========
Series C++--Investment income--net $ 371 $ 14 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Series C was issued on October 19, 2005.
++++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
+++++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights MuniYield New York Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.26 $ 14.81 $ 14.81 $ 14.83 $ 15.01
---------- ---------- ---------- ---------- ----------
Investment income--net .46+++ .94+++ .91+++ .97+++ .94
Realized and unrealized loss--net (.19) (.50) (.01) (.09) (.19)
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.11) (.13) (.06) (.07) (.10)
Realized gain--net -- -- -- -- --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .16 .31 .84 .81 .65
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.40) (.84) (.84) (.83) (.83)
Realized gain--net -- -- -- -- --++
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.40) (.84) (.84) (.83) (.83)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Stock --++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.02 $ 14.26 $ 14.81 $ 14.81 $ 14.83
========== ========== ========== ========== ==========
Market price per share, end of period $ 13.60 $ 13.17 $ 13.20 $ 13.25 $ 13.36
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.19%+++++ 2.53% 6.53% 6.19% 4.97%
========== ========== ========== ========== ==========
Based on market price per share 6.28%+++++ 6.24% 6.13% 5.45% 1.24%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.03%* .96% .94% .94% .96%
========== ========== ========== ========== ==========
Total expenses*** 1.03%* .96% .95% .94% .96%
========== ========== ========== ========== ==========
Total investment income--net*** 6.55%* 6.37% 6.23% 6.49% 6.37%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.57%* .87% .42% .50% .66%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 4.98%* 5.50% 5.81% 5.99% 5.71%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.90%* 1.91% .95% 1.13% 1.49%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Financial Highlights (concluded) MuniYield New York Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 552,939 $ 562,474 $ 584,248 $ 584,025 $ 584,793
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 304,000 $ 304,000 $ 259,000 $ 259,000 $ 259,000
========== ========== ========== ========== ==========
Portfolio turnover 29.16% 46.41% 19.91% 51.89% 87.56%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,819 $ 2,850 $ 3,256 $ 3,255 $ 3,258
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 369 $ 493 $ 254 $ 249 $ 334
========== ========== ========== ========== ==========
Series B--Investment income--net $ 340 $ 448 $ 203 $ 232 $ 305
========== ========== ========== ========== ==========
Series C--Investment income--net $ 358 $ 469 $ 240 $ 214 $ 356
========== ========== ========== ========== ==========
Series D--Investment income--net $ 338 $ 464 $ 231 $ 454 $ 503
========== ========== ========== ========== ==========
Series E--Investment income--net $ 389 $ 496 $ 251 $ 255 $ 356
========== ========== ========== ========== ==========
Series F++++--Investment income--net $ 362 $ 65 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may result in substantially different returns. Total investment
returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Series F was issued on September 21, 2005.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield
California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan
Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. (the "Funds"
or individually as the "Fund") are registered under the Investment Company
Act of 1940, as amended, as non-diversified, closed-end management investment
companies. The Funds' financial statements are prepared in conformity with
U.S. generally accepted accounting principles, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. These unaudited financial statements reflect all adjustments,
which are, in the opinion of management, necessary to present a fair
statement of the results for the interim period. All such adjustments are of
a normal, recurring nature. The Funds determine and make available for
publication the net asset values of their Common Stock/Shares on a daily
basis. Common Stock shares and Common Shares are listed on the New York Stock
Exchange under the symbol MYC for MuniYield California Fund, Inc., MCA for
MuniYield California Insured Fund, Inc., MYF for MuniYield Florida Fund, MYM
for MuniYield Michigan Insured Fund II, Inc. and MYN for MuniYield New York
Insured Fund, Inc. Common Stock is listed on the American Stock Exchange
under the symbol MZA for MuniYield Arizona Fund, Inc. The following is a
summary of significant accounting policies followed by the Funds.
(a) Valuation of investments--Municipal bonds are traded primarily in the over-
the-counter ("OTC") markets and are valued at the last available bid price in
the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general
direction of the Board of Directors/Trustees. Such valuations and procedures
are reviewed periodically by the Board of Directors/Trustees of the Funds.
Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of such
exchanges. Options written or purchased are valued at the last sale price in
the case of exchange-traded options. In the case of options traded in the OTC
market, valuation is the last asked price (options written) or the last bid
price (options purchased). Swap agreements are valued by quoted fair
valuations received daily by the Funds' pricing service. Short-term
investments with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates market value, under which method the
investment is valued at cost and any premium or discount is amortized on a
straight line basis to maturity. Investments in open-end investment companies
are valued at their net asset value each business day. Securities and other
assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of the Board
of Directors/Trustees of the Funds.
(b) Derivative financial instruments--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, their exposure to interest rate movements and movements in
the securities markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures contracts are
contracts for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund deposits
and maintains as collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the Fund agrees
to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed.
* Options--Each Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (continued)
When a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the basis
of the security acquired or deducted from (or added to) the proceeds of the
security sold. When an option expires (or the Fund enters into a closing
transaction), the Fund realizes a gain or loss on the option to the extent
of the premiums received or paid (or gain or loss to the extent the cost of
the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--Each Fund may enter into forward interest rate
swaps. In a forward interest rate swap, the Fund and the counterparty agree to
make periodic net payments on a specified notional contract amount, commencing
on a specified future effective date, unless terminated earlier. When the
agreement is closed, the Fund records a realized gain or loss in an amount
equal to the value of the agreement.
(c) Income taxes--It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(d) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(f) Offering costs--Direct expenses relating to the public offering of the
Fund's Preferred Stock/Shares were charged to capital at the time of issuance
of the shares. Any adjustments to estimates of offering costs were recorded
back to capital.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services,
Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co.,
Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of each Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Fund. For such services, each Fund pays a
monthly fee at an annual rate of .50% of the Fund's average weekly net assets,
including proceeds from the issuance of Preferred Stock/Shares. For the six
months ended April 30,2006, the Investment Adviser agreed to reimburse its
management fee by the amount of management fees each Fund pays to FAM
indirectly through its investment(s) described below:
Investment(s) Reimbursement
MuniYield Arizona CMA Arizona Municipal
Fund, Inc. Money Fund $ 2,279
MuniYield California CMA California Municipal
Fund, Inc. Money Fund $ 10,268
MuniYield California CMA California Municipal
Insured Fund, Inc. Money Fund $ 7,911
MuniYield Florida Merrill Lynch Institutional
Fund Tax-Exempt Fund/
CMA Florida Municipal
Money Fund $ 6,895
MuniYield Michigan CMA Michigan Municipal
Insured Fund II, Inc. Money Fund $ 8,533
MuniYield New York CMA New York Municipal
Insured Fund, Inc. Money Fund $ 2,930
For the six months ended April 30, 2006, the Funds reimbursed FAM for
certain accounting services. The reimbursements were as follows:
Reimbursement
MuniYield Arizona Fund, Inc. $1,118
MuniYield California Fund, Inc. $5,144
MuniYield California Insured Fund, Inc. $8,455
MuniYield Florida Fund $3,465
MuniYield Michigan Insured Fund II, Inc. $3,018
MuniYield New York Insured Fund, Inc. $9,380
Certain officers and/or directors/trustees of the Funds are officers
and/or directors of FAM, PSI, and/or ML & Co.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (continued)
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM, to the
investment management business of BlackRock, Inc. The transaction is expected
to close in the third quarter of 2006.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended April 30, 2006 were as follows:
Total Total
Purchases Sales
MuniYield Arizona Fund, Inc. $ 23,519,475 $ 22,905,149
MuniYield California Fund, Inc. $131,290,008 $ 122,246,707
MuniYield California Insured
Fund, Inc. $175,549,616 $ 167,604,499
MuniYield Florida Fund $ 85,073,702 $ 89,439,370
MuniYield Michigan Insured
Fund II, Inc. $ 14,444,749 $ 16,508,046
MuniYield New York Insured
Fund, Inc. $245,252,560 $ 259,068,792
4. Stock/Share Transactions:
MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield
California Insured Fund, Inc., MuniYield Michigan Insured Fund II, Inc. and
MuniYield New York Insured Fund, Inc. are authorized to issue 200,000,000
shares of stock, including Preferred Stock, par value $.10 per share, all of
which were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of stock without
approval of holders of Common Stock.
MuniYield Florida Fund is authorized to issue an unlimited number of Common
Shares of beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The Board of
Trustees is authorized, however, to reclassify any unissued shares of
beneficial interest without approval of holders of Common Shares.
Common Stock/Shares
MuniYield Arizona Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
during the year ended October 31, 2005 increased by 15,110 and 23,152,
respectively, as a result of dividend reinvestment.
MuniYield California Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
during the year ended October 31, 2005 remained constant.
MuniYield California Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
during the year ended October 31, 2005 remained constant.
MuniYield Florida Fund
Shares issued and outstanding during the six months ended April 30, 2006
increased by 6,144 as a result of dividend reinvestment and during the year
ended October 31, 2005 remained constant.
MuniYield Michigan Insured Fund II, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
during the year ended October 31, 2005 increased by 15,590 and 7,539
respectively, as a result of dividend reinvestment.
MuniYield New York Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
during the year ended October 31, 2005 remained constant.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Stock/Shares of the
Funds, with a liquidation preference of $25,000 per share plus accrued and
unpaid dividends that entitle their holders to receive cash dividends at an
annual rate that may vary for the successive dividend periods.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (continued)
The yields in effect at April 30, 2006 were as follows:
MuniYield
MuniYield MuniYield California
Arizona California Insured
Fund, Inc. Fund, Inc. Fund, Inc.
Series A 3.55% 3.37% 2.99%
Series B 3.40% 3.55% 3.55%
Series C 3.50% 2.99% 3.60%
Series D -- 3.50% 3.38%
Series E -- -- 3.60%
Series F -- -- 3.55%
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured II Insured
Fund Fund, Inc. Fund, Inc.
Series A 3.33% 2.855% 2.87%
Series B 3.60% 3.60% 3.00%
Series C 3.60% 3.42% 3.50%
Series D -- -- 3.60%
Series E -- -- 3.70%
Series F -- -- 3.20%
MuniYield Arizona Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 400 shares from the issuance of an additional series of
Preferred Stock.
MuniYield California Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 1,400 shares from the issuance of an additional series
of Preferred Stock.
MuniYield California Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 1,800 shares from the issuance of an additional series
of Preferred Stock.
MuniYield Florida Fund
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 600 shares from the issuance of an additional series of
Preferred Shares.
MuniYield Michigan Insured Fund II, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 400 shares from the issuance of an additional series of
Preferred Stock.
MuniYield New York Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 1,800 shares from the issuance of an additional series
of Preferred Stock.
The Funds pay commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of
each auction. For the six months ended April 30, 2006, MLPF&S earned
commissions as follows:
Commissions
MuniYield Arizona Fund, Inc. $ 28,220
MuniYield California Fund, Inc. $110,448
MuniYield California Insured Fund, Inc. $144,472
MuniYield Florida Fund $ 75,958
MuniYield Michigan Insured Fund II, Inc. $ 60,393
MuniYield New York Insured Fund, Inc. $182,438
5. Capital Loss Carryforward:
MuniYield California Fund, Inc.
On October 31, 2005, the Fund had a net capital loss carryforward of
$3,505,291, of which $3,151,445 expires in 2008 and $353,846 expires in 2011.
This amount will be available to offset like amounts of any future taxable
gains.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (concluded)
MuniYield California Insured Fund, Inc.
On October 31, 2005, the Fund had a net capital loss carryforward of
$13,381,827, of which $72,467 expires in 2007, $5,722,655 expires in 2008,
$9,668 expires in 2009, $4,901,089 expires in 2011 and $2,675,948 expires in
2012. This amount will be available to offset like amounts of any future
taxable gains.
MuniYield Florida Fund
On October 31, 2005, the Fund had a net capital loss carryforward of
$9,417,859, of which $906,731 expires in 2007, $7,036,191 expires in 2008 and
$1,474,937 expires in 2012. This amount will be available to offset like
amounts of any future taxable gains.
MuniYield Michigan Insured Fund II, Inc.
On October 31, 2005, the Fund had a net capital loss carryforward of
$5,180,885, of which $2,841,781 expires in 2008, $1,050,253 expires in 2010
and $1,288,851 expires in 2012. This amount will be available to offset like
amounts of any future taxable gains.
MuniYield New York Insured Fund, Inc.
On October 31, 2005, the Fund had a net capital loss carryforward of
$27,642,246, of which $8,051,889 expires in 2008, $3,007,157 expires in 2010
and $16,583,200 expires in 2012. This amount will be available to offset like
amounts of any future taxable gains.
6. Subsequent Event:
The Funds paid a tax-exempt income dividend to holders of Common Stock/Shares
on May 30, 2006 to stock/shareholders of record on May 15, 2006. The amount of
the tax-exempt dividend was as follows:
Per Share
Amount
MuniYield Arizona Fund, Inc. $.067000
MuniYield California Fund, Inc. $.057000
MuniYield California Insured Fund, Inc. $.070000
MuniYield Florida Fund $.067000
MuniYield Michigan Insured Fund II, Inc $.065000
MuniYield New York Insured Fund, Inc. $.065000
SEMI-ANNUAL REPORTS APRIL 30, 2006
Proxy Results MuniYield Arizona Fund, Inc.
During the six-month period ended April 30, 2006, MuniYield Arizona Fund,
Inc.'s Common Stock shareholders voted on the following proposal. The proposal
was approved at a shareholders' meeting on April 27, 2006. A description of
the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 4,357,959 57,907
James H. Bodurtha 4,351,610 64,256
Kenneth A. Froot 4,357,959 57,907
Joe Grills 4,352,339 63,527
Roberta Cooper Ramo 4,356,859 59,007
During the six-month period ended April 30, 2006, MuniYield Arizona Fund,
Inc.'s Preferred Stock shareholders (Series A - C) voted on the following
proposal. The proposal was approved at a shareholders' meeting on April 27,
2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr.,
James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London,
Roberta Cooper Ramo and Robert S. Salomon, Jr. 1,323 145
MuniYield California Fund, Inc.
During the six-month period ended April 30, 2006, MuniYield California Fund,
Inc.'s Common Stock shareholders voted on the following proposal. The proposal
was approved at a shareholders' meeting on April 27, 2006. A description of
the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 19,746,052 989,072
James H. Bodurtha 19,735,378 999,746
Kenneth A. Froot 19,743,128 991,996
Joe Grills 19,735,856 999,268
Roberta Cooper Ramo 19,748,209 986,915
During the six-month period ended April 30, 2006, MuniYield California Fund,
Inc.'s Preferred Stock shareholders (Series A - D) voted on the following
proposal. The proposal was approved at a shareholders' meeting on April 27,
2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 6,069 21
James H. Bodurtha 6,071 19
Kenneth A. Froot 6,071 19
Joe Grills 6,071 19
Herbert I. London 6,071 19
Roberta Cooper Ramo 6,071 19
Robert S. Salomon, Jr. 6,071 19
SEMI-ANNUAL REPORTS APRIL 30, 2006
Proxy Results (continued) MuniYield California Insured Fund, Inc.
During the six-month period ended April 30, 2006, MuniYield California Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 32,843,165 690,561
James H. Bodurtha 32,830,300 703,426
Kenneth A. Froot 32,836,449 697,277
Joe Grills 32,833,341 700,385
Roberta Cooper Ramo 32,840,252 693,474
During the six-month period ended April 30, 2006, MuniYield California Insured
Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
April 27, 2006. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 9,480 13
James H. Bodurtha 9,480 13
Kenneth A. Froot 9,465 28
Joe Grills 9,480 13
Herbert I. London 9,480 13
Roberta Cooper Ramo 9,480 13
Robert S. Salomon, Jr. 9,480 13
MuniYield Florida Fund
During the six-month period ended April 30, 2006, MuniYield Florida Fund's
Common Shareholders voted on the following proposal. The proposal was approved
at a shareholders' meeting on April 27, 2006. A description of the proposal
and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 13,137,941 140,403
James H. Bodurtha 13,136,106 142,238
Kenneth A. Froot 13,122,443 155,901
Joe Grills 13,134,076 144,268
Roberta Cooper Ramo 13,122,449 155,895
During the six-month period ended April 30, 2006, MuniYield Florida Fund's
Preferred Shareholders (Series A - C) voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr.,
James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London,
Roberta Cooper Ramo and Robert S. Salomon, Jr. 4,241 19
SEMI-ANNUAL REPORTS APRIL 30, 2006
Proxy Results (concluded) MuniYield Michigan Insured Fund II, Inc.
During the six-month period ended April 30, 2006, MuniYield Michigan Insured
Fund II, Inc.'s Common Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 11,373,866 313,677
James H. Bodurtha 11,373,866 313,677
Kenneth A. Froot 11,363,957 323,586
Joe Grills 11,364,432 323,111
Roberta Cooper Ramo 11,374,449 313,094
During the six-month period ended April 30, 2006, MuniYield Michigan Insured
Fund II, Inc.'s Preferred Stock shareholders (Series A - C) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
April 27, 2006. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr.,
James H. Bodurtha, Kenneth A. Froot, Joe Grills, Herbert I. London,
Roberta Cooper Ramo and Robert S. Salomon, Jr. 3,723 0
MuniYield New York Insured Fund, Inc.
During the six-month period ended April 30, 2006, MuniYield New York Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 37,541,475 710,065
James H. Bodurtha 37,530,086 721,454
Kenneth A. Froot 37,535,149 716,391
Joe Grills 37,529,034 722,506
Roberta Cooper Ramo 37,549,399 702,141
During the six-month period ended April 30, 2006, MuniYield New York Insured
Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
April 27, 2006. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr. 11,805 171
James H. Bodurtha 11,805 171
Kenneth A. Froot 11,789 187
Joe Grills 11,789 187
Herbert I. London 11,789 187
Roberta Cooper Ramo 11,789 187
Robert S. Salomon, Jr 11,789 187
SEMI-ANNUAL REPORTS APRIL 30, 2006
Investment Objectives
AMEX Symbol MuniYield Arizona Fund, Inc. seeks to provide shareholders with
MZA as high a level of current income exempt from federal and Arizona
income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a
portfolio of long-term, investment grade municipal obligations
the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal and Arizona income taxes.
NYSE Symbol MuniYield California Fund, Inc. seeks to provide shareholders with
MYC as high a level of current income exempt from federal and
California income taxes as is consistent with its investment
policies and prudent investment management by investing primarily
in a portfolio of long-term municipal obligations the interest on
which, in the opinion of bond counsel to the issuer, is exempt
from federal and California income taxes.
NYSE Symbol MuniYield California Insured Fund, Inc. seeks to provide
MCA shareholders with as high a level of current income exempt from
federal and California income taxes as is consistent with its
investment policies and prudent investment management by investing
primarily in a portfolio of long-term, investment grade municipal
obligations the interest on which, in the opinion of bond counsel
to the issuer, is exempt from federal and California income taxes.
NYSE Symbol MuniYield Florida Fund seeks to provide shareholders with as high
MYF a level of current income exempt from federal income taxes as is
consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of
bond counsel to the issuer, is exempt from federal income taxes
and which enables shares of the Fund to be exempt from Florida
intangible personal property taxes.
NYSE Symbol MuniYield Michigan Insured Fund II, Inc. seeks to provide
MYM shareholders with as high a level of current income exempt from
federal and Michigan income taxes as is consistent with its
investment policies and prudent investment management by investing
primarily in a portfolio of long-term municipal obligations the
interest on which, in the opinion of bond counsel to the issuer,
is exempt from federal and Michigan income taxes.
NYSE Symbol MuniYield New York Insured Fund, Inc. seeks to provide
MYN shareholders with as high a level of current income exempt from
federal income tax and New York State and New York City personal
income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a
portfolio of long-term municipal obligations the interest on
which, in the opinion of bond counsel to the issuer, is exempt
from federal income tax and New York State and New York City
personal income taxes.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Officers and Directors/Trustees
Robert C. Doll, Jr., President and Director/Trustee
James H. Bodurtha, Director/Trustee
Kenneth A. Froot, Director/Trustee
Joe Grills, Director/Trustee
Herbert I. London, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Robert S. Salomon, Jr., Director/Trustee
Donald C. Burke, Vice President and Treasurer
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Timothy T. Browse, Vice President
Michael A. Kalinoski, Vice President
Walter C. O'Connor, Vice President
Robert D. Sneeden, Vice President
Fred K. Stuebe, Vice President
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
MuniYield Arizona Fund, Inc.,
MuniYield California Fund, Inc.,
MuniYield Florida Fund,
MuniYield Michigan Insured Fund II, Inc. and
MuniYield New York Insured Fund, Inc.:
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock/Shares: Preferred Stock/Shares:
The Bank of New York The Bank of New York
101 Barclay Street - 11 East 101 Barclay Street - 7 West
New York, NY 10286 New York, NY 10286
MuniYield California Insured Fund, Inc.:
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock: Preferred Stock:
Computershare Trust The Bank of New York
Company, N.A. 101 Barclay Street - 7 West
P.O. Box 43010 New York, NY 10286
Providence, RI 02940-3010
1-800-426-5523
Effective January 1, 2006, Stephen B. Swensrud retired as Director/Trustee of
MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield
California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan
Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. The Funds'
Board of Directors/Trustees wishes Mr. Swensrud well in his retirement.
SEMI-ANNUAL REPORTS APRIL 30, 2006
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value
of their Common Shares/Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Funds issue
Preferred Shares/Stock, which pay dividends at prevailing short-term interest
rates, and invests the proceeds in long-term municipal bonds. The interest
earned on these investments, net of dividends to Preferred Shares/Stock, is
paid to Common Shareholders/Common Stock shareholders in the form of
dividends, and the value of these portfolio holdings is reflected in the per
share net asset value of the Funds' Common Shares/Stock. However, in order to
benefit Common Shareholders/Common Stock shareholders, the yield curve must be
positively sloped; that is, short-term interest rates must be lower than long-
term interest rates. At the same time, a period of generally declining
interest rates will benefit Common Shareholders/Common Stock shareholders. If
either of these conditions change, then the risks of leveraging will begin to
outweigh the benefits.
To illustrate these concepts, assume a fund's Common Shares/Stock
capitalization of $100 million and the issuance of Preferred Shares/Stock for
an additional $50 million, creating a total value of $150 million available
for investment in long-term municipal bonds. If prevailing short-term interest
rates are approximately 3% and long-term interest rates are approximately 6%,
the yield curve has a strongly positive slope. The fund pays dividends on the
$50 million of Preferred Shares/Stock based on the lower short-term interest
rates. At the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates.
In this case, the dividends paid to Preferred Shareholders/ Preferred Stock
shareholders are significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Shareholders/Common Stock
shareholders are the beneficiaries of the incremental yield.
However, if short-term interest rates rise, narrowing the differential between
short-term and long-term interest rates, the incremental yield pickup on the
Common Shares/Stock will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Shares/Stock (that is, its price
as listed on the American Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Shares'/Stocks' net
asset value will reflect the full decline in the price of the portfolio's
investments, since the value of the fund's Preferred Shares/Stock does not
fluctuate. In addition to the decline in net asset value, the market value of
the fund's Common Shares/Stock may also decline.
As a part of their investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase
when short-term interest rates decrease. Investments in inverse floaters may
be characterized as derivative securities and may subject the Funds to the
risks of reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of providing
investment leverage and, as a result, the market value of such securities will
generally be more volatile than that of fixed rate, tax-exempt securities. To
the extent the Funds invest in inverse floaters, the market value of each
Fund's portfolio and the net asset value of each Fund's shares may also be
more volatile than if the Funds did not invest in these securities. As of
April 30, 2006, the percentages of MuniYield Arizona Fund, Inc.'s, MuniYield
California Fund, Inc.'s, MuniYield California Insured Fund, Inc.'s, MuniYield
Florida Fund's, MuniYield Michigan Insured Fund II, Inc.'s and MuniYield New
York Insured Fund, Inc.'s total net assets invested in inverse floaters were
7.95%, 11.13%, 14.03%, 6.45%, 10.71% and 11.24%, respectively, before the
deduction of Preferred Shares/Stock.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Electronic Delivery
The Funds offer electronic delivery of communications to their shareholders.
In order to receive this service, you must register your account and provide
us with e-mail information. To sign up for this service, simply access this
Web site at http://www.icsdelivery.com/live and follow the instructions. When
you visit this site, you will obtain a personal identification number (PIN).
You will need this PIN should you wish to update your e-mail address, choose
to discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this semi-
annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-
annual report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined
that the registrant's disclosure controls and procedures are
effective based on our evaluation of these controls and procedures
as of a date within 90 days prior to the filing date of this
report.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
MuniYield California Fund, Inc.
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield California Fund, Inc.
Date: June 22, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield California Fund, Inc.
Date: June 22, 2006
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield California Fund, Inc.
Date: June 22, 2006