UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06499
Name of Fund: BlackRock MuniYield California Fund, Inc. (MYC)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock 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: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2007
Date of reporting period: 11/01/2006 - 10/31/2007
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
Annual Report
OCTOBER 31, 2007
BlackRock MuniYield Arizona Fund, Inc. (MZA)
BlackRock MuniYield California Fund, Inc. (MYC)
BlackRock MuniYield California Insured Fund, Inc. (MCA)
BlackRock MuniYield Florida Fund (MYF)
BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)
BlackRock MuniYield New York Insured Fund, Inc. (MYN)
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
This report, including the financial information herein, is transmitted to
shareholders of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield
California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc.,
BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund
II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. for their
information. This is not a prospectus. Past performance results shown in this
report should not be considered a representation of future performance. The
Funds have leveraged their Common Stock/Shares and intend to remain leveraged
by issuing Preferred Stock/Shares to provide the Common Stock Shareholders/
Common Shareholders with potentially higher rates of return. Leverage creates
risks for Common Stock Shareholders/Common Shareholders, including the
likelihood of greater volatility of net asset value and market price of shares
of the Common Stock/Shares, and the risk that fluctuations in the short-term
dividend rates of the Preferred Stock/Shares may affect the yield to Common
Stock Shareholders/Common Shareholders. Statements and other information
herein are as dated and are subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1)
without charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web
site at http://www.sec.gov. Information about how the Funds vote proxies
relating to securities held in the Funds' portfolios during the most recent
12-month period ended June 30 is available (1) at www.blackrock.com; and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
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Table of Contents
Page
A Letter to Shareholders 3
Annual Report:
Fund Summaries 4
Financial Statements:
Schedules of Investments 10
Statements of Net Assets 34
Statements of Operations 36
Statements of Changes in Net Assets 38
Financial Highlights 41
Notes to Financial Statements 47
Report of Independent Registered Public Accounting Firm 53
The Benefits and Risks of Leveraging 54
Swap Agreements 54
Automatic Dividend Reinvestment Plan 55
Important Tax Information 56
Officers and Directors or Trustees 57
Additional Information 60
ANNUAL REPORT OCTOBER 31, 2007
A Letter to Shareholders
Dear Shareholder
The October reporting period was fairly tumultuous for financial markets, but
culminated in positive performance for most major benchmarks:
Total Returns as of October 31, 2007 6-month 12-month
U.S. equities (S&P 500 Index) +5.49% +14.56%
Small cap U.S. equities (Russell 2000 Index) +2.25% + 9.27%
International equities (MSCI Europe, Australasia, Far East Index) +8.19% +24.91%
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.68% + 5.38%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.30% + 2.91%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -0.07% + 6.89%
Past performance is no guarantee of future results. Index performance shown
for illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified
in the summer and fall, spawning a widespread liquidity and credit crisis with
ramifications across global markets. The Federal Reserve Board (the "Fed") and
other countries' central banks stepped in to inject liquidity into the markets
and bolster investor confidence. The Fed cut the federal funds rate by 0.50%
in September and another 0.25% on the final day of the reporting period,
bringing its target rate to 4.50%. In taking action, the central bankers, who
had long deemed themselves inflation fighters, were seeking to stem the
fallout from the credit crunch and forestall a wider economic unraveling. By
period-end, the Fed had cited the risks between slower economic growth and
faster inflation as equally balanced.
Amid the volatility throughout the past year, equity markets have displayed
surprising resilience. Most recently, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for equity
markets. Still, market fundamentals have held firm, dividend payouts and share
buybacks have continued to grow, and valuations remain attractive. These
tailwinds generally have prevailed over the headwinds created by the slowing
U.S. economy, troubled housing market and, recently, a more difficult
corporate earnings backdrop. International markets fared even better than U.S.
equities, benefiting from robust M&A activity and generally stronger economies.
In fixed income markets, mixed economic signals and the credit woes resulted
in a flight to quality. At the height of the uncertainty, investors shunned
bonds associated with the housing and credit markets in favor of higher-
quality Treasury issues. The yield on 10-year Treasury issues, which touched
5.30% in June (its highest level in five years), fell to 4.48% by period-end,
while prices correspondingly rose. The tax-exempt bond market has been
challenged by a combination of record-setting supply year-to-date, economic
uncertainty and concerns around the credit worthiness of bond insurers. This
has brought municipal bond prices to relatively attractive levels and, as
such, demand generally has remained firm.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as
needed. For more market insight and commentary from BlackRock investment
professionals, we invite you to visit www.blackrock.com/funds. As always, we
thank you for entrusting BlackRock with your investment assets, and we look
forward to continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
------------------------
Robert C. Doll, Jr.
Vice Chairman, BlackRock, Inc.
/s/ Peter J. Hayes
-------------------
Peter J. Hayes
Managing Director, BlackRock, Inc.
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of October 31, 2007 BlackRock MuniYield Arizona Fund, Inc.
Investment Objective
BlackRock MuniYield Arizona Fund, Inc. (MZA) seeks to provide shareholders
with as high a level of current income exempt from federal and Arizona income
taxes as is consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term, investment
grade municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal and Arizona income taxes.
Fund Information
Symbol on American Stock Exchange MZA
Initial Offering Date October 29, 1993
Yield on Closing Market Price as of October 31, 2007 ($13.66)* 5.01%
Tax Equivalent Yield** 7.71%
Current Monthly Distribution per share of Common Stock*** $.057
Current Annualized Distribution per share of Common Stock*** $.684
Leverage as of October 31, 2007**** 38.88%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
that may be outstanding) minus the sum of accrued liabilities (other than
debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.66 $14.79 (7.64%) $15.26 $13.25
Net Asset Value $13.96 $14.53 (3.92%) $14.70 $13.43
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
Education 29% 28%
City, County & State 21 17
Hospital 13 14
Housing 10 6
Lease Revenue 7 10
Power 6 6
Industrial & Pollution Control 4 5
Water & Sewer 4 6
Sales Tax 3 6
Transportation 3 2
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 49% 55%
AA/Aa 9 6
A/A 17 12
BBB/Baa 19 21
BB/Ba 2 2
NR (Not Rated) 4 4
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007 BlackRock MuniYield California Fund, Inc.
Investment Objective
BlackRock MuniYield California Fund, Inc. (MYC) seeks to provide shareholders
with as high a level of current income exempt from federal and California
income taxes as is consistent with its investment policies and prudent
investment management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond counsel to
the issuer, is exempt from federal and California income taxes.
Fund Information
Symbol on New York Stock Exchange MYC
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of October 31, 2007 ($13.25)* 4.98%
Tax Equivalent Yield** 7.66%
Current Monthly Distribution per share of Common Stock*** $.055
Current Annualized Distribution per share of Common Stock*** $.660
Leverage as of October 31, 2007**** 35.97%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
that may be outstanding) minus the sum of accrued liabilities (other
than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.25 $14.00 (5.36%) $14.50 $12.38
Net Asset Value $14.60 $15.11 (3.38%) $15.29 $14.10
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
City, County & State 18% 20%
Education 15 15
Water & Sewer 12 13
Lease Revenue 12 14
Sales Tax 11 15
Power 9 10
Hospital 8 4
Transportation 6 6
Industrial & Pollution Control 4 0
Resouorce Recovery 2 1
Housing 2 1
Tobacco 1 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 79% 82%
AA/Aa 3 3
A/A 12 11
BBB/Baa 6 4
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield California Insured Fund, Inc.
Investment Objective
BlackRock MuniYield California Insured Fund, Inc. (MCA) seeks to provide
shareholders with as high a level of current income exempt from federal and
California income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a portfolio of long-
term, investment grade municipal obligations the interest on which, in the
opinion of bond counsel to the issuer, is exempt from federal and California
income taxes.
Fund Information
Symbol on New York Stock Exchange MCA
Initial Offering Date October 30, 1992
Yield on Closing Market Price as of October 31, 2007 ($13.16)* 5.11%
Tax Equivalent Yield** 7.86%
Current Monthly Distribution per share of Common Stock*** $.056
Current Annualized Distribution per share of Common Stock*** $.672
Leverage as of October 31, 2007**** 39.49%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
that may be outstanding) minus the sum of accrued liabilities (other than
debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.16 $14.64 (10.11%) $14.82 $12.53
Net Asset Value $14.63 $15.09 (3.05%) $15.28 $14.16
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
City, County & State 28% 27%
Lease Revenue 14 19
Education 13 11
Transportation 11 11
Sales Tax 11 10
Water & Sewer 10 13
Power 4 3
Housing 4 3
Industrial & Pollution Control 3 0
Hospital 2 3
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 95% 97%
AA/Aa 2 1
A/A 3 2
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007 BlackRock MuniYield Florida Fund
Investment Objective
BlackRock MuniYield Florida Fund (MYF) seeks to provide shareholders with as
high a level of current income exempt from federal income taxes as is
consistent with its investment policies and prudent investment management by
investing primarily in a portfolio of long-term municipal obligations the
interest on which, in the opinion of bond counsel to the issuer, is exempt
from federal income taxes and which enables shares of the Fund to be exempt
from Florida intangible personal property taxes.
Fund Information
Symbol on New York Stock Exchange MYF
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of October 31, 2007 ($12.86)* 5.41%
Tax Equivalent Yield** 8.32%
Current Monthly Distribution per Common Share*** $.058
Current Annualized Distribution per Common Share*** $.696
Leverage as of October 31, 2007**** 35.79%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Shares
that may be outstanding) minus the sum of accrued liabilities (other than
debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $12.86 $14.35 (10.38%) $14.60 $12.56
Net Asset Value $14.53 $15.11 (3.84%) $15.25 $14.05
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
Transportation 21% 21%
Hospital 19 17
Lease Revenue 15 16
City, County & State 11 13
Water & Sewer 10 13
Sales Tax 8 9
Education 7 6
Housing 5 2
Industrial & Pollution Control 2 2
Power 2 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 80% 79%
AA/Aa 2 3
A/A 7 7
BBB/Baa 9 9
NR (Not Rated) 2 2
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield Michigan Insured Fund II, Inc.
Investment Objective
BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM) seeks to provide
shareholders with as high a level of current income exempt from federal and
Michigan income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a portfolio of long-
term municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal and Michigan income taxes.
Fund Information
Symbol on New York Stock Exchange MYM
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of October 31, 2007 ($12.61)* 5.33%
Tax Equivalent Yield** 8.20%
Current Monthly Distribution per share of Common Stock*** $.056
Current Annualized Distribution per share of Common Stock*** $.672
Leverage as of October 31, 2007**** 36.67%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
that may be outstanding) minus the sum of accrued liabilities (other than
debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $12.61 $13.97 (9.74%) $14.14 $12.25
Net Asset Value $14.13 $14.60 (3.22%) $14.73 $13.72
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
Hospital 22% 21%
City, County & State 21 25
Industrial & Pollution Control 12 15
Lease Revenue 12 13
Transportation 10 8
Education 9 7
Water & Sewer 8 8
Sales Tax 3 1
Power 2 2
Housing 1 0
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 83% 85%
AA/Aa 4 4
A/A 11 8
BBB/Baa 2 3
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield New York Insured Fund, Inc.
Investment Objective
BlackRock MuniYield New York Insured Fund, Inc. (MYN) seeks to provide
shareholders with as high a level of current income exempt from federal income
tax and New York State and New York City personal income taxes as is
consistent with its investment policies and prudent investment management by
investing primarily in a portfolio of long-term municipal obligations the
interest on which, in the opinion of bond counsel to the issuer, is exempt
from federal income tax and New York State and New York City personal income
taxes.
Fund Information
Symbol on New York Stock Exchange MYN
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of October 31, 2007 ($12.80)* 5.06%
Tax Equivalent Yield** 7.78%
Current Monthly Distribution per share of Common Stock*** $.054
Current Annualized Distribution per share of Common Stock*** $.648
Leverage as of October 31, 2007**** 35.55%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
that may be outstanding) minus the sum of accrued liabilities (other than
debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $12.80 $14.10 (9.22%) $14.33 $12.06
Net Asset Value $13.94 $14.40 (3.19%) $14.55 $13.48
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 10/31/07 10/31/06
Transportation 38% 38%
City, County & State 15 14
Sales Tax 10 8
Water & Sewer 8 9
Power 7 8
Housing 6 6
Education 6 6
Industrial & Pollution Control 4 4
Lease Revenue 3 3
Hospital 2 3
Tobacco 1 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 94% 90%
AA/Aa 4 6
A/A 2 3
BBB/Baa -- --**
BB/Ba -- 1
* Using the higher of S&P's or Moody's ratings.
** Amount is less than 1%.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Arizona--135.0%
$ 1,000 Arizona Educational Loan Marketing Corporation,
Educational Loan Revenue Refunding Bonds, AMT,
Junior Sub-Series, 6.30% due 12/01/2008 $ 1,005
Arizona Health Facilities Authority Revenue Bonds,
Series A:
1,750 (Banner Health System), 5% due 1/01/2025 1,789
1,435 (Catholic Healthcare West), 6.625%
due 7/01/2020 1,561
Arizona Student Loan Acquisition Authority, Student
Loan Revenue Refunding Bonds, AMT:
3,285 Junior Subordinated Series B-1, 6.15%
due 5/01/2029 3,450
1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,048
1,000 Arizona Tourism and Sports Authority, Tax Revenue
Bonds (Baseball Training Facilities Project), 5%
due 7/01/2016 1,024
Downtown Phoenix Hotel Corporation, Arizona,
Revenue Bonds (c):
1,500 Senior Series A, 5% due 7/01/2036 1,535
1,500 Sub-Series B, 5% due 7/01/2036 1,535
1,000 Flagstaff, Arizona, Aspen Place at the Sawmill
Improvement District, Special Assessment
Improvement Bonds, 5% due 1/01/2032 996
1,000 Gila County, Arizona, Unified School District
Number 10 (Payson), GO (School Improvement
Project of 2006), Series A, 1% due 7/01/2027 (a)(n) 993
1,000 Gilbert, Arizona, Water Resource Municipal Property
Corporation, Water System Development Fee and
Utility Revenue Bonds, Subordinated Lien, 5%
due 10/01/2029 (g) 1,045
750 Gladden Farms Community Facilities District, Arizona,
GO, 5.50% due 7/15/2031 704
2,500 Glendale, Arizona, IDA, Revenue Refunding Bonds
(Midwestern University), 5% due 5/15/2031 2,518
2,000 Greater Arizona Development Authority, Infrastructure
Revenue Bonds, Series B, 5% due 8/01/2030 (g) 2,070
900 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 882
2,000 Maricopa County, Arizona, IDA, Health Facilities
Revenue Refunding Bonds (Catholic Healthcare West
Project), Series A, 5.25% due 7/01/2032 2,039
Face
Amount Municipal Bonds Value
Arizona (continued)
$ 2,400 Maricopa County, Arizona, IDA, Hospital Facility
Revenue Refunding Bonds (Samaritan Health
Services), Series A, 7% due 12/01/2016 (b)(g) $ 2,896
1,984 Maricopa County, Arizona, IDA, S/F Mortgage
Revenue Bonds, AMT, Series 3-B, 5.25%
due 8/01/2038 (d)(e) 2,057
1,000 Maricopa County, Arizona, Peoria Unified School
District Number 11, GO, Second Series, 5%
due 7/01/2025 (c) 1,045
1,485 Maricopa County, Arizona, Pollution Control
Corporation, PCR, Refunding (Public Service
Company of New Mexico Project), Series A, 6.30%
due 12/01/2026 1,501
1,825 Maricopa County, Arizona, Scottsdale Unified School
District Number 48, GO, 6.60% due 7/01/2012 2,061
500 Maricopa County, Arizona, Tempe Elementary Unified
School District Number 3, GO, Refunding, 7.50%
due 7/01/2010 (c) 551
1,000 Maricopa County, Arizona, Unified School District
Number 090, School Improvement, GO (Saddle
Mountain), Series A, 5% due 7/01/2014 1,030
1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health
Systems), Series A, 5.625% due 1/01/2010 (g)(h) 1,053
1,997 Phoenix and Pima County, Arizona, IDA, S/F Mortgage
Revenue Refunding Bonds, AMT, Series 2007-1,
5.25% due 8/01/2038 (d)(e) 2,026
3,325 Phoenix, Arizona, Civic Improvement Corporation,
Excise Tax Revenue Bonds (Civic Plaza Expansion
Project), Sub-Series A, 5% due 7/01/2035 (c) 3,427
600 Phoenix, Arizona, Civic Improvement Corporation,
Senior Lien Airport Revenue Bonds, AMT, Series B,
5.25% due 7/01/2032 (c) 612
2,500 Phoenix, Arizona, Civic Improvement Corporation,
Water System Revenue Refunding Bonds, Junior Lien,
5.50% due 7/01/2020 (c) 2,681
1,999 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds,
AMT, Series 2007-2, 5.50% due 8/01/2038 (d)(e) 2,112
Pima County, Arizona, IDA, Education Revenue Bonds:
500 (American Charter Schools Foundation),
Series A, 5.625% due 7/01/2038 493
740 (Arizona Charter Schools Project), Series C,
6.70% due 7/01/2021 775
990 (Arizona Charter Schools Project), Series C,
6.75% due 7/01/2031 1,029
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of
Investments, we have abbreviated the names and descriptions of many of
the securities according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
PILOT Payment in Lieu of Taxes
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Arizona (continued)
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds:
$ 1,000 (Arizona Charter Schools Project), Series O, 5%
due 7/01/2026 $ 937
390 (Arizona Charter Schools Project II), Series A,
6.75% due 7/01/2011 (h) 431
585 (Arizona Charter Schools Project II), Series A,
6.75% due 7/01/2021 614
1,000 Pima County, Arizona, IDA, Revenue Refunding
Bonds (Health Partners), Series A, 5.625%
due 4/01/2014 (g) 1,022
3,050 Pima County, Arizona, Unified School District
Number 1 (Tucson), GO Refunding, 7.50%
due 7/01/2009 (c) 3,248
1,000 Pima County, Arizona, Unified School District
Number 1 (Tucson), GO, Series C, 5%
due 7/01/2027 1,050
Pinal County, Arizona, COP:
1,250 5% due 12/01/2026 1,263
1,250 5% due 12/01/2029 1,252
500 Pinal County, Arizona, IDA, Wastewater Revenue
Bonds (San Manuel Facilities Project), AMT, 6.25%
due 6/01/2026 529
2,000 Queen Creek Improvement District Number 001,
Arizona, Special Assessment Bonds, 5%
due 1/01/2032 1,948
1,500 Salt River Project, Arizona, Agriculture Improvement
and Power District, Electric System Revenue
Refunding Bonds, Series A, 5% due 1/01/2035 1,554
2,000 Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds, 5% due 12/01/2037 1,913
2,250 Scottsdale, Arizona, IDA, Hospital Revenue
Bonds (Scottsdale Healthcare), 5.80%
due 12/01/2011 (h) 2,459
1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds
(Navapache Regional Medical Center), 5%
due 12/01/2035 (i) 1,170
1,500 South Campus Group LLC, Arizona Student
Housing Revenue Bonds (Arizona State University
South Campus Project), Series 2003, 5.625%
due 9/01/2035 (g) 1,620
1,500 Surprise Municipal Property Corporation, Arizona,
Wastewater Development Impact Fee Revenue
Bonds, 4.90% due 4/01/2032 1,446
1,000 Tucson and Pima County, Arizona, IDA, S/F Mortgage
Revenue Refunding Bonds, AMT, Series B, 5.35%
due 6/01/2047 (d)(e) 1,049
1,000 Tucson, Arizona, IDA, Joint S/F Mortgage Revenue
Refunding Bonds, AMT, Series A-1, 5.10%
due 7/01/2038 (d)(e) 1,023
Face
Amount Municipal Bonds Value
Arizona (concluded)
$ 1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue
Bonds (Christian Care Tucson Inc. Project), Series A,
6.125% due 7/01/2010 (h)(i) $ 1,076
1,105 University of Arizona, COP, Refunding, Series A,
5.125% due 6/01/2029 (a) 1,145
2,000 University of Arizona, COP, Series B, 5%
due 6/01/2028 (a) 2,051
Vistancia Community Facilities District, Arizona, GO:
1,275 6.75% due 7/15/2022 1,369
750 5.75% due 7/15/2024 781
2,000 Yavapai County, Arizona, IDA, Hospital Facility
Revenue Bonds (Yavapai Regional Medical Center),
Series A, 6% due 8/01/2033 2,080
1,000 Yavapai County, Arizona, IDA, Solid Waste Disposal
Revenue Bonds (Waste Management Inc. Project),
AMT, Series A-1, 4.90% due 3/01/2028 928
1,775 Yuma County, Arizona, Library District, GO, 5%
due 7/01/2026 (j) 1,867
Guam--1.6%
1,000 Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875% due 7/01/2035 1,023
Puerto Rico--15.0%
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Highway Revenue Refunding
Bonds, Series CC, 5.50% due 7/01/2031 1,097
560 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series G, 5% due 7/01/2033 564
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation
Revenue Refunding Bonds, Series N, 5.25%
due 7/01/2039 (c) 1,113
2,000 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5.125% due 7/01/2031 2,026
1,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series TT, 5% due 7/01/2037 1,015
1,500 Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue
Bonds (Cogeneration Facility-AES Puerto Rico
Project), AMT, 6.625% due 6/01/2026 1,583
2,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5.25%
due 7/01/2033 (m) 2,058
Total Municipal Bonds
(Cost--$94,110)--151.6% 95,847
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (l) Value
Arizona--14.9%
$ 8,670 Arizona State University Revenue Bonds, 5.50%
due 7/01/2012 (c)(h) $ 9,395
Puerto Rico--1.7%
1,000 Puerto Rico Commonwealth, Public Improvement,
GO, 5.75% due 7/01/2010 (g)(h) 1,057
Total Municipal Bonds Held in Trust
(Cost--$10,031)--16.6% 10,452
Shares
Held Short-Term Securities Value
651 CMA Arizona Municipal Money Fund, 2.81% (f)(k) $ 651
Total Short-Term Securities
(Cost--$651)--1.0% 651
Total Investments (Cost--$104,792*)--169.2% 106,950
Other Assets Less Liabilities--2.3% 1,488
Liability for Trust Certificates,
Including Interest Expense Payable--(7.7%) (4,896)
Preferred Stock, at Redemption Value--(63.8%) (40,314)
----------
Net Assets Applicable to Common Stock--100.0% $ 63,228
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 100,165
==============
Gross unrealized appreciation $ 2,744
Gross unrealized depreciation (794)
--------------
Net unrealized appreciation $ 1,950
==============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHLMC Collateralized.
(e) FNMA/GNMA Collateralized.
(f) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Arizona Municipal Money Fund (767) $33
(g) MBIA Insured.
(h) Prerefunded.
(i) Radian Insured.
(j) XL Capital Insured.
(k) Represents the current yield as of October 31, 2007.
(l) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
(m) Commonwealth Guaranteed.
(n) Represents a step bond.
o Forward interest rate swaps outstanding as of October 31, 2007
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 3.846% and
receive a floating rate based on
1-week (SIFMA) Municipal Swap
Index Rate
Broker, Citibank, N.A.
Expires January 2023 $2,500 $ 8
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California--133.2%
$ 1,730 ABAG Finance Authority for Nonprofit Corporations,
California, Revenue Refunding Bonds (Redwood
Senior Homes and Services), 6% due 11/15/2022 $ 1,826
2,075 Antioch Area Public Facilities Financing Agency,
California, Special Tax (Community Facilities District
Number 1989-1), 5.70% due 8/01/2009 (a)(f) 2,174
2,725 Arcata, California, Joint Powers Financing Authority,
Tax Allocation Revenue Refunding Bonds
(Community Development Project Loan), Series A,
6% due 8/01/2023 (a) 2,730
10,000 California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A,
5.50% due 6/01/2022 (d)(g) 10,301
1,490 California Health Facilities Financing Authority,
Revenue Refunding Bonds (Pomona Valley
Hospital Medical Center), Series A, 5.625%
due 7/01/2019 (b) 1,522
4,990 California Infrastructure and Economic Development
Bank Revenue Bonds (J. David Gladstone Institute
Project), 5.50% due 10/01/2022 5,196
California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Bonds, AMT:
2,700 (Republic Services Inc. Project), Series B,
5.25% due 6/01/2023 2,770
3,000 (Waste Management Inc. Project), Series A-2,
5.40% due 4/01/2025 3,020
2,500 (Waste Management Inc. Project), Series C,
5.125% due 11/01/2023 2,474
California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Refunding Bonds, AMT:
2,000 (Republic Services Inc. Project), Series C,
5.25% due 6/01/2023 2,052
4,500 (Waste Management Inc. Project), Series B,
5% due 7/01/2027 4,296
California Rural Home Mortgage Finance Authority,
S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT:
2,000 Series A, 5.40% due 12/01/2036 (c)(i) 2,112
35 Series B, 6.15% due 6/01/2020 (c) 36
420 Sub-Series FH-1, 5.50% due 8/01/2047 427
2,500 California State Enterprise Authority, Sewer Facility
Revenue Bonds (Anheuser-Busch Project), AMT,
5.30% due 9/01/2047 2,507
California State, GO:
200 5.50% due 4/01/2014 (f) 223
5,000 5.125% due 4/01/2025 5,232
5 5.50% due 4/01/2030 5
California State, GO, Refunding:
170 5.75% due 5/01/2010 (f) 181
450 5.75% due 5/01/2030 475
3,000 5% due 6/01/2037 3,039
2,785 California State, GO, Refunding, Veterans, AMT,
Series BJ, 5.70% due 12/01/2032 2,813
Face
Amount Municipal Bonds Value
California (continued)
California State Public Works Board, Lease Revenue
Bonds:
$ 2,000 (California State University), Series C, 5.40%
due 10/01/2022 (b) $ 2,042
5,000 (Department of Corrections), Series C, 5.50%
due 6/01/2023 5,379
4,000 (Department of Health Services), Series A,
5.75% due 11/01/2009 (b)(f) 4,217
12,000 (Various Community College Projects), Series A,
5.625% due 3/01/2016 (a) 12,212
6,850 California State, Various Purpose, GO, 5.50%
due 11/01/2033 7,240
5,250 California Statewide Communities Development
Authority, COP (John Muir/Mount Diablo Health
System), 5.125% due 8/15/2022 (b) 5,360
California Statewide Communities Development
Authority Health Facility Revenue Bonds (Memorial
Health Services), Series A:
3,270 6% due 10/01/2023 3,484
3,000 5.50% due 10/01/2033 3,079
California Statewide Communities Development
Authority Revenue Bonds:
1,700 (Daughters of Charity National Health System),
Series A, 5.25% due 7/01/2030 1,704
7,500 (Kaiser Permanente), Series B, 5.25%
due 3/01/2045 7,590
California Statewide Communities Development
Authority, Revenue Refunding Bonds:
6,975 (Kaiser Hospital Asset Management, Inc.),
Series C, 5.25% due 8/01/2031 7,127
3,500 (Kaiser Permanente), Series A, 5%
due 4/01/2031 3,515
2,380 California Statewide Communities Development
Authority, Water Revenue Bonds (Pooled Financing
Program), Series C, 5.25% due 10/01/2028 (d) 2,488
2,000 Chino Basin, California, Regional Financing Authority
Revenue Bonds (Inland Empire Utility Agency Sewer
Project), 5.75% due 11/01/2009 (b)(f) 2,110
2,705 Contra Costa County, California, Public Financing
Authority, Lease Revenue Refunding Bonds
(Various Capital Facilities), Series A, 5.30%
due 8/01/2020 (b) 2,761
3,750 Cucamonga, California, County Water District, COP,
5.125% due 9/01/2035 (e) 3,877
7,000 Fontana Unified School District, California, GO,
Series A, 5.25% due 8/01/2028 (d) 7,377
4,000 Fremont, California, Unified School District, Alameda
County, GO (Election of 2002), Series B, 5%
due 8/01/2030 (d) 4,153
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1:
3,500 5.125% due 6/01/2047 3,072
2,000 5.75% due 6/01/2047 1,916
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 9,390 Grant Joint Union High School District, California,
GO (Election of 2006), 5% due 8/01/2029 (d) $ 9,704
5,195 Long Beach, California, Harbor Revenue Bonds, AMT,
Series A, 5.25% due 5/15/2023 (e) 5,381
2,000 Los Angeles, California, COP (Sonnenblick Del Rio
West Los Angeles), 6.20% due 11/01/2031 (a) 2,145
10,000 Los Angeles, California, Community College
District, GO (Election of 2003), Series E, 5%
due 8/01/2031 (d) 10,402
7,000 Los Angeles, California, Wastewater System Revenue
Bonds, Series A, 5% due 6/01/2008 (e)(f) 7,134
5,000 Los Angeles, California, Wastewater System
Revenue Refunding Bonds, Series A, 4.75%
due 6/01/2035 (b) 5,035
4,500 Los Angeles, California, Wastewater System, Revenue
Refunding Bonds, Subordinate Series A, 5%
due 6/01/2027 (b) 4,677
3,780 Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding
Bonds, Proposition A, First Tier Senior-Series A, 5%
due 7/01/2027 (a) 3,943
5,000 Los Angeles County, California, Public Works
Financing Authority, Lease Revenue Bonds (Multiple
Capital Facilities Project VI), Series A, 5.625%
due 5/01/2010 (a)(f) 5,268
2,550 Los Angeles County, California, Sanitation Districts
Financing Authority, Revenue Refunding Bonds
(Capital Projects--District Number 14), Sub-Series B,
5% due 10/01/2030 (e) 2,644
5,885 Marin, California, Community College District, GO
(Election of 2004), Series A, 5% due 8/01/2028 (b) 6,130
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series A:
1,000 5% due 7/01/2030 (d) 1,038
1,240 5% due 7/01/2032 1,293
5,000 5% due 7/01/2037 5,194
7,000 Modesto, California, Wastewater Treatment Facilities
Revenue Bonds, 5.625% due 11/01/2007 (b)(f) 7,070
7,570 Morgan Hill, California, Unified School District, GO,
5% due 8/01/2026 (e)(g)(k) 3,174
2,000 Mount Diablo, California, Unified School District, GO
(Election of 2002), 5% due 6/01/2028 (b) 2,082
6,675 Murrieta Valley, California, Unified School District,
Public Financing Authority, Special Tax Revenue
Bonds, Series A, 5.125% due 9/01/2026 (h) 7,006
Oakland, California, Alameda County Unified School
District, GO (b):
6,240 (Election of 2000), 5% due 8/01/2027 6,512
7,060 Series F, 5.50% due 8/01/2010 (f) 7,451
5,250 Orange County, California, Sanitation District, COP, 5%
due 2/01/2033 (e) 5,344
Face
Amount Municipal Bonds Value
California (continued)
$ 3,000 Oxnard, California, Financing Authority, Wastewater
Revenue Bonds (Redwood Trunk Sewer and Headworks
Projects), Series A, 5.25% due 6/01/2034 (e) $ 3,143
1,000 Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50% due 11/01/2035 (b) 1,077
2,000 Peralta, California, Community College District, GO
(Election of 2000), Series D, 5% due 8/01/2030 (d) 2,077
1,750 Pleasant Valley, California, School District, Ventura
County, GO, Series C, 5.75% due 8/01/2025 (b)(g) 1,812
10,600 Port of Oakland, California, Port Revenue Refunding
Bonds, Series I, 5.40% due 11/01/2017 (b) 10,828
4,315 Rancho Cucamonga, California, Redevelopment
Agency, Tax Allocation Refunding Bonds (Rancho
Redevelopment Project), 5.25% due 9/01/2020 (d) 4,464
5,000 Rancho Mirage, California, Joint Powers Financing
Authority Revenue Bonds (Eisenhower Medical
Center), Series A, 5% due 7/01/2038 4,988
2,345 Richmond, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Harbour Redevelopment
Project), Series A, 5.50% due 7/01/2018 (b) 2,419
5,000 Sacramento, California, Municipal Utility District,
Electric Revenue Refunding Bonds, Series L, 5.125%
due 7/01/2022 (b) 5,101
2,500 Sacramento, California, Municipal Utility District
Financing Authority, Revenue Bonds, (Consumers
Project), 5.125% due 7/01/2029 (b) 2,637
Sacramento County, California, Sanitation District
Financing Authority, Revenue Refunding Bonds:
5,375 (County Sanitation District Number 1), 5%
due 8/01/2035 (b) 5,552
3,455 Series A, 5.60% due 12/01/2017 3,461
2,110 Salinas Valley, California, Solid Waste Authority,
Revenue Refunding Bonds, AMT, 5.125%
due 8/01/2022 (a) 2,162
8,000 San Bernardino, California, City Unified School
District, GO, Refunding, Series A, 5.875%
due 8/01/2009 (e)(f) 8,413
3,000 San Bernardino, California, Joint Powers Financing
Authority, Lease Revenue Bonds (Department
of Transportation Lease), Series A, 5.50%
due 12/01/2020 (b) 3,005
10,000 San Diego, California, Unified School District, GO
(Election of 1998), Refunding, Series F-1, 4.50%
due 7/01/2029 (d) 9,890
5,010 San Diego County, California, Water Authority,
Water Revenue Bonds, COP, Series A, 5%
due 5/01/2031 (d) 5,133
6,000 San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds,
Series A, 5% due 7/01/2030 (b) 6,228
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 1,720 San Francisco, California, City and County
Educational Facilities, GO (Community College),
Series A, 5.75% due 6/15/2008 (f) $ 1,778
1,310 San Francisco, California, City and County Zoo
Facilities, GO, Series B, 5.75% due 6/15/2008 (f) 1,354
4,615 San Jose, California, Airport Revenue Bonds,
Series D, 5% due 3/01/2028 (b) 4,746
1,855 San Jose, California, Unified School District, Santa
Clara County, GO (Election of 2002), Series B, 5%
due 8/01/2029 (e) 1,929
10,005 San Jose-Evergreen, California, Community College
District, Capital Appreciation, GO (Election of 2004),
Refunding, Series A, 5.12% due 9/01/2023 (b)(k) 4,559
5,000 San Juan, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2028 (b) 5,170
2,020 Santa Clara, California, Unified School District, GO,
5.50% due 7/01/2021 (e) 2,132
3,500 Santa Clara County, California, Housing Authority,
M/F Housing Revenue Bonds (John Burns
Gardens Apartments Project), AMT, Series A, 6%
due 8/01/2041 3,653
2,170 Santa Clarita, California, Community College District,
GO (Election 2001), 5% due 8/01/2028 (d) 2,260
4,000 Santa Monica, California, Redevelopment Agency,
Tax Allocation Bonds (Earthquake Recovery
Redevelopment Project), 6% due 7/01/2009 (a)(f) 4,207
2,500 Sequoia, California, Unified High School District, GO,
Refunding, 5% due 7/01/2028 (d) 2,614
1,675 Shasta-Tehama-Trinity Joint Community College
District, California, GO (Election of 2002), Series B,
5.25% due 8/01/2024 (d) 1,803
6,875 Sonoma County, California, Junior College District,
GO (Election 2002), Refunding, Series B, 5%
due 8/01/2028 (d) 7,161
2,265 South Bayside, California, Waste Management
Authority, Waste System Revenue Bonds, 5.75%
due 3/01/2020 (a) 2,371
3,000 Southern California HFA, S/F Mortgage Revenue
Bonds, AMT, Series A, 5.80% due 12/01/2049 (c)(i) 3,229
6,750 Southern California Public Power Authority, Natural
Gas Project Number 1 Revenue Bonds, Series A, 5%
due 11/01/2033 6,549
1,600 Stockton, California, Public Financing Authority, Water
Revenue Bonds (Water System Capital Improvement
Projects), Series A, 5% due 10/01/2031 (b) 1,659
3,235 Taft, California, Public Financing Authority, Lease
Revenue Bonds (Community Correctional Facility),
Series A, 6.05% due 1/01/2017 (b) 3,450
Face
Amount Municipal Bonds Value
California (concluded)
$ 1,310 Torrance, California, Hospital Revenue Refunding
Bonds (Torrance Memorial Medical Center), Series A,
6% due 6/01/2022 $ 1,398
4,745 Vacaville, California, Unified School District, GO
(Election of 2001), 5% due 8/01/2030 (b) 4,927
1,000 Ventura, California, Unified School District, GO
(Election of 1997), Series H, 5.125%
due 8/01/2034 (d) 1,041
3,990 Vernon, California, Electric System Revenue Bonds
(Malburg Generating Station Project), 5.50%
due 4/01/2008 (f) 4,025
5,000 Vista, California, Joint Powers Financing Authority,
Lease Revenue Refunding Bonds, 5.625%
due 5/01/2016 (b) 5,109
Puerto Rico--0.9%
2,500 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2030 2,591
U.S. Virgin Islands--1.0%
3,000 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50% due 7/01/2021 3,184
Total Municipal Bonds
(Cost--$410,968)--135.1% 420,030
Municipal Bonds Held in Trust (m)
California--32.6%
9,000 Anaheim, California, Public Financing Authority,
Electric System District Facilities Revenue Bonds,
Series A, 5% due 10/01/2031 (d) 9,280
10,210 Contra Costa County, California, Community
College District, GO (Election of 2002), 5%
due 8/01/2030 (d) 10,558
6,020 La Quinta, California, Financing Authority, Local
Agency Revenue Bonds, Series A, 5.125%
due 9/01/2034 (a) 6,245
10,460 Palm Desert, California, Financing Authority, Tax
Allocation Revenue Refunding Bonds (Project Area
Number 2), Series A, 5.125% due 8/01/2036 (a) 10,889
11,615 Port of Oakland, California, Revenue Refunding
Bonds, AMT, Series L, 5.375% due 11/01/2027 (e) 12,087
16,000 Sacramento, California, Municipal Utility District
Financing Authority, Revenue Bonds (Consumers
Project), 5.125% due 7/01/2029 (b) 16,874
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (m) Value
California (concluded)
$ 20,710 San Diego, California, Certificates of Undivided
Interest Revenue Bonds (Water Utility Fund), 5.20%
due 8/01/2024 (e) $ 21,130
5,430 San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds, Series A,
5% due 7/01/2034 (b) 5,611
8,490 University of California, Limited Project Revenue
Bonds, Series B, 5% due 5/15/2033 (d) 8,743
Total Municipal Bonds Held in Trust
(Cost--$101,184)--32.6% 101,417
Shares
Held Short-Term Securities Value
7,845 CMA California Municipal Money Fund, 2.88% (j)(l) $ 7,845
Total Short-Term Securities
(Cost--$7,845)--2.5% 7,845
Total Investments (Cost--$519,997*)--170.2% 529,292
Other Assets Less Liabilities--2.1% 6,376
Liability for Trust Certificates,
Including Interest Expense Payable--(15.9%) (49,506)
Preferred Stock, at Redemption Value--(56.4%) (175,228)
----------
Net Assets Applicable to Common Stock--100.0% $ 310,934
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 471,770
==============
Gross unrealized appreciation $ 10,479
Gross unrealized depreciation (1,925)
--------------
Net unrealized appreciation $ 8,554
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FNMA/GNMA Collateralized.
(d) FSA Insured.
(e) FGIC Insured.
(f) Prerefunded.
(g) Escrowed to maturity.
(h) Assured Guaranty Insured.
(i) FHLMC Collateralized.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA California Municipal
Money Fund 3,852 $352
(k) Represents a zero coupon bond; the interest rate shown is the effective
yield at the time of purchase.
(l) Represents the current yield as of October 31, 2007.
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California--136.7%
$ 7,000 ABAG Finance Authority for Nonprofit Corporations,
California, COP (Children's Hospital Medical Center),
6% due 12/01/2009 (a)(g) $ 7,427
2,350 Alameda, California, GO, 5% due 8/01/2033 (f) 2,422
5,665 Alhambra, California, Unified School District, GO
(Election of 2004), Series A, 5% due 8/01/2029 (b) 5,889
3,580 Anaheim, California, Public Financing Authority,
Electric System Distribution Facilities Revenue
Bonds, Series A, 5% due 10/01/2031 (e) 3,691
2,400 Anaheim, California, Union High School District, GO
(Election of 2002), 5% due 8/01/2027 (f) 2,495
255 Bay Area Government Association, California, Tax
Allocation Revenue Refunding Bonds (California
Redevelopment Agency Pool), Series A, 6%
due 12/15/2024 (e) 256
3,980 Brentwood, California, Infrastructure Refinancing
Authority, Infrastructure Revenue Refunding Bonds,
Series A, 5.20% due 9/02/2029 (e) 4,183
California Community College Financing Authority,
Lease Revenue Bonds, Series A (f)(g):
3,215 5.95% due 12/01/2009 3,438
1,100 6% due 12/01/2009 1,177
5,000 California Educational Facilities Authority Revenue
Bonds (University of San Diego), Series A, 5.50%
due 10/01/2032 5,227
9,115 California Educational Facilities Authority, Student
Loan Revenue Bonds (CalEdge Loan Program), AMT,
5.55% due 4/01/2028 (a) 9,260
California HFA, Home Mortgage Revenue Bonds,
VRDN, AMT, Series R (a)(m):
400 3.53% due 8/01/2023 400
600 3.53% due 8/01/2032 600
2,750 California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A,
5.50% due 6/01/2022 (e)(i) 2,833
California Rural Home Mortgage Finance Authority,
S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT, Series A (d):
295 6.35% due 12/01/2029 (c) 301
130 6.25% due 12/01/2031 133
12,680 California State Department of Veteran Affairs, Home
Purchase Revenue Refunding Bonds, Series A,
5.35% due 12/01/2027 (a) 13,284
860 California State, GO, 6.25% due 10/01/2019 (f) 869
California State, GO, Refunding:
3,000 5.25% due 2/01/2029 3,117
3,000 Series BX, 5.50% due 12/01/2031 (e) 3,004
19,865 California State, GO, Refunding, Veterans, AMT,
Series B, 5.70% due 12/01/2032 (a) 20,102
Face
Amount Municipal Bonds Value
California (continued)
$ 4,530 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections-Ten Administrative
Segregation Housing Unites), Series A, 5.25%
due 3/01/2020 (a) $ 4,773
2,720 California State University, Systemwide
Revenue Refunding Bonds, Series A, 5.125%
due 11/01/2026 (a) 2,852
5,950 California State, Various Purpose, GO, 5.50%
due 11/01/2033 6,289
4,100 California Statewide Communities Development
Authority, COP (Kaiser Permanente), 5.30%
due 12/01/2015 (e)(i) 4,252
3,685 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 3,926
2,650 California Statewide Communities Development
Authority, Revenue Refunding Bonds (Kaiser
Permanente), Series A, 5% due 4/01/2031 2,662
7,000 Capistrano, California, Unified School District,
Community Facility District, Special Tax Refunding
Bonds, 5% due 9/01/2029 (b) 7,256
4,600 Ceres, California, Redevelopment Agency, Tax
Allocation Bonds (Ceres Redevelopment Project Area
Number 1), 5.75% due 11/01/2010 (f)(g) 4,992
6,000 Chaffey, California, Union High School District, GO,
Series C, 5.375% due 5/01/2023 (e) 6,418
3,000 Chino Valley, California, Unified School District,
GO (Election of 2002), Series C, 5.25%
due 8/01/2030 (f) 3,178
5,910 Chula Vista, California, Elementary School District,
COP, 5% due 9/01/2029 (f) 6,061
10,000 Coachella Valley, California, Unified School
District, COP, 5% due 9/01/2036 (a) 10,236
3,275 Coachella Valley, California, Unified School
District, GO (Election of 2005), Series A, 5%
due 8/01/2025 (b) 3,427
2,540 Coalinga, California, Redevelopment Agency Tax
Allocation Bonds, 5.90% due 9/15/2025 (f) 2,742
Contra Costa, California, Water District, Water
Revenue Refunding Bonds:
4,135 Series L, 5% due 10/01/2032 (e) 4,260
1,735 Series O, 5% due 10/01/2024 (a) 1,838
12,180 Contra Costa County, California, COP, Refunding
(Merrithew Memorial Hospital Project), 5.375%
due 11/01/2007 (f)(g) 12,424
8,500 Corona, California, COP (Clearwater Cogeneration
Project), 5% due 9/01/2028 (f) 8,707
1,485 East Bay, California, Municipal Utility District,
Wasterwater System Revenue Refunding Bonds,
Sub-Series A, 5% due 6/01/2037 (a) 1,542
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 1,100 El Centro, California, Financing Authority,
Water Revenue Bonds, Series A, 5.25%
due 10/01/2035 (e) $ 1,162
Fremont, California, Unified School District, Alameda
County, GO:
6,000 (Election of 2002), Series B, 5%
due 8/01/2030 (e) 6,230
10,755 Series A, 5.50% due 8/01/2026 (b) 11,535
4,295 Fresno, California, Joint Powers Financing
Authority, Lease Revenue Bonds, Series A, 5.75%
due 6/01/2026 (e) 4,554
6,930 Fullerton, California, Public Financing Authority, Tax
Allocation Revenue Bonds, 5% due 9/01/2027 (a) 7,165
4,390 Glendale, California, Electric Revenue Bonds, 5%
due 2/01/2032 (f) 4,493
Glendora, California, Unified School District, GO
(Election of 2005), Series A (f):
1,350 5% due 8/01/2027 1,412
2,700 5.25% due 8/01/2030 2,871
5,710 Hanford, California, Joint Unified High School
District, GO (Election of 2004), Series A, 4.75%
due 8/01/2029 (e) 5,812
Hollister, California, Joint Powers Finance Authority,
Wastewater Revenue Refunding Bonds (Refining and
Improvement Project), Series 1 (e):
5,000 5% due 6/01/2032 5,175
6,000 5% due 6/01/2037 6,190
4,090 Imperial, California, Community College District, GO
(Election of 2004), 5% due 8/01/2029 (b) 4,252
2,500 La Quinta, California, Financing Authority,
Local Agency Revenue Bonds, Series A, 5.25%
due 9/01/2024 (a) 2,677
3,050 Little Lake, California, City School District, GO,
Refunding, 5.50% due 7/01/2025 (e) 3,324
10,260 Lodi, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2029 (e) 10,591
8,000 Los Angeles, California, Community College
District, GO (Election of 2003), Series E, 5%
due 8/01/2031 (e) 8,321
10,000 Los Angeles, California, Community Redevelopment
Agency, Community Redevelopment Financing
Authority Revenue Bonds (Bunker Hill Project),
Series A, 5% due 12/01/2027 (e) 10,337
290 Los Angeles, California, Department of Airports,
Airport Revenue Bonds (Los Angeles International
Airport), AMT, Series D, 5.625% due 5/15/2012 (b) 290
Face
Amount Municipal Bonds Value
California (continued)
Los Angeles, California, Unified School District, GO:
$ 2,880 (Election of 2004), Series C, 5%
due 7/01/2027 (b) $ 2,982
5,365 (Election of 2004), Series F, 4.75%
due 7/01/2027 (b) 5,483
5,000 (Election of 2004), Series F, 5%
due 7/01/2030 (b) 5,210
7,000 Series E, 5% due 7/01/2030 (a) 7,266
Los Angeles, California, Unified School District, GO,
Refunding:
5,000 Series B, 4.75% due 7/01/2019 (e) 5,257
4,000 Series B, 4.75% due 7/01/2025 (b) 4,108
5,000 Los Angeles, California, Wastewater System Revenue
Refunding Bonds, Series A, 4.75% due 6/01/2035 (f) 5,035
5,000 Los Angeles, California, Water and Power Revenue
Bonds (Power System), Sub-Series A-1, 5%
due 7/01/2031 (e) 5,177
3,165 Los Angeles, California, Water and Power Revenue
Refunding Bonds (Power System), Series A-A-2,
5.375% due 7/01/2021 (f) 3,345
Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue
Refunding Bonds:
5,240 Proposition A, First Tier Senior-Series A, 5%
due 7/01/2027 (a) 5,467
6,500 Proposition A, First Tier Senior-Series A, 5%
due 7/01/2035 (a) 6,713
2,000 Proposition C, Second Tier Senior-Series A,
5.25% due 7/01/2010 (b)(g) 2,113
8,735 Los Angeles County, California, Public Works
Financing Authority, Lease Revenue Refunding
Bonds (Master Refunding Project), Series A, 5%
due 12/01/2028 (f) 9,040
3,000 Los Rios, California, Community College District, GO
(Election of 2002), Series B, 5% due 8/01/2027 (f) 3,119
2,010 Madera, California, Public Financing Authority, Water
and Wastewater Revenue Refunding Bonds, 5%
due 3/01/2036 (f) 2,075
6,865 Merced, California, Community College District,
GO (School Facilities District Number 1), 5%
due 8/01/2031 (f) 7,141
5,370 Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1, 5%
due 10/01/2033 (b) 5,528
8,000 Murrieta Valley, California, Unified School District,
Public Financing Authority, Special Tax Revenue
Bonds, Series A, 5.125% due 9/01/2026 (l) 8,396
9,070 Napa, California, Water Revenue Bonds, 5%
due 5/01/2035 (a) 9,425
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 6,015 Natomas Unified School District, California, GO
(Election of 2006), 5% due 8/01/2028 (b) $ 6,265
4,245 Nevada County, California, COP, Refunding, 5.25%
due 10/01/2019 (f) 4,468
2,000 New Haven, California, Unified School District, GO,
Refunding, 5.75% due 8/01/2020 (e) 2,178
4,270 Oakland, California, Sewer Revenue Bonds, Series A,
5% due 6/15/2029 (e) 4,418
2,000 Oakland, California, State Building Authority, Lease
Revenue Bonds (Elihu M. Harris State Office Building),
Series A, 5.50% due 4/01/2008 (a)(g) 2,037
1,245 Orange County, California, Airport Revenue Refunding
Bonds, AMT, 5.625% due 7/01/2012 (f) 1,272
6,360 Orange County, California, Public Financing Authority,
Lease Revenue Refunding Bonds (Juvenile Justice
Center Facility), 5.375% due 6/01/2018 (a) 6,836
10,000 Oxnard, California, Financing Authority, Wastewater
Revenue Bonds (Redwood Trunk Sewer and
Headworks Projects), Series A, 5.25%
due 6/01/2034 (b) 10,476
9,645 Oxnard, California, Unified High School District, GO,
Refunding, Series A, 6.20% due 8/01/2030 (f) 11,008
1,275 Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50% due 11/01/2035 (f) 1,373
4,640 Palmdale, California, Water District Public Facility
Corporation, COP, 5% due 10/01/2029 (b) 4,760
Placentia-Yorba Linda, California, Unified School
District:
5,000 COP, 5% due 10/01/2030 (b) 5,138
5,000 GO (Election of 2002), Series C, 5%
due 8/01/2029 (f) 5,198
2 Port of Oakland, California, RIB, AMT, Series 1192,
7.01% due 11/01/2027 (h) 3
7,500 Port of Oakland, California, Revenue Bonds AMT,
Series K, 5.75% due 11/01/2029 (b) 7,788
3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,073
Riverside, California, Unified School District, GO
(Election of 2001):
6,000 Series A, 5.25% due 2/01/2023 (b) 6,378
7,515 Series B, 5% due 8/01/2030 (f) 7,833
4,500 Riverside County, California, Asset Leasing
Corporation, Leasehold Revenue Refunding Bonds
(Riverside County Hospital Project), Series B, 5.70%
due 6/01/2016 (f) 4,934
3,000 Sacramento, California, City Financing Authority,
Capital Improvement Revenue Bonds
(Community Rein Capital Program), Series A, 5%
due 12/01/2036 (a) 3,090
Face
Amount Municipal Bonds Value
California (continued)
$ 6,590 Sacramento, California, City Financing Authority,
Tax Allocation Revenue Bonds (Merged
Downtown and Oak Park Projects), Series A, 5.03%
due 12/01/2032 (b)(n) $ 1,966
2,565 Saddleback Valley, California, Unified School
District, GO, 5% due 8/01/2029 (e) 2,655
5,000 San Bernardino, California, City Unified School
District, GO, Series A, 5% due 8/01/2028 (e) 5,176
320 San Bernardino County, California, S/F Home
Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.25% due 12/01/2031 (d) 327
San Diego, California, Redevelopment Agency,
Subordinate Tax Allocation Bonds (Centre City
Redevelopment Project), Series A (a):
2,720 5.25% due 9/01/2024 2,908
2,860 5.25% due 9/01/2025 3,047
5,400 San Diego, California, Unified Port District,
Revenue Refunding Bonds, AMT, Series A, 5.25%
due 9/01/2019 (f) 5,704
San Diego County, California, COP (Salk Institute for
Bio Studies) (f):
3,570 5.75% due 7/01/2022 3,812
5,200 5.75% due 7/01/2031 5,531
San Diego County, California, Water Authority, Water
Revenue Bonds, COP, Series A (e):
7,350 5% due 5/01/2030 7,544
10,000 5% due 5/01/2031 10,245
5,000 San Francisco, California, Bay Area Rapid Transit
District, GO (Election of 2004), Series B, 5%
due 8/01/2035 5,199
19,630 San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds
Series A, 5% due 7/01/2030 (f) 20,375
6,455 San Francisco, California, City and County Airport
Commission, International Airport Revenue
Refunding Bonds, Second Series 28B, 5.25%
due 5/01/2012 (f)(g) 6,935
San Francisco, California, City and County Airport
Commission, International Airport, Special Facilities
Lease Revenue Bonds (SFO Fuel Company LLC),
AMT, Series A (e):
1,000 6.10% due 1/01/2020 1,023
985 6.125% due 1/01/2027 1,008
San Francisco, California, Community College
District, GO, Refunding, Series A (b):
1,735 5.375% due 6/15/2019 1,839
1,730 5.375% due 6/15/2020 1,834
1,925 5.375% due 6/15/2021 2,040
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 4,135 San Jose, California, Airport Revenue Bonds,
Series D, 5% due 3/01/2028 (f) $ 4,252
1,632 San Jose, California, Financing Authority, Lease
Revenue Refunding Bonds, DRIVERS, Series 1280Z,
6.273% due 12/01/2010 (a)(h) 1,698
7,300 San Jose, California, Redevelopment Agency, Tax
Allocation Bonds (Housing Set-Aside Merged Area),
AMT, Series E, 5.85% due 8/01/2027 (f) 7,477
4,250 San Juan, California, Unified School District, GO
(Election of 2002), 5% due 8/01/2028 (f) 4,395
4,350 San Mateo County, California, Transit District,
Sales Tax Revenue Refunding Bonds, Series A, 5%
due 6/01/2029 (f) 4,519
2,595 Santa Clara, California, Redevelopment Agency, Tax
Allocation Bonds (Bayshore North Project), Series A,
5.25% due 6/01/2019 (a) 2,680
5,500 Santa Clara, California, Subordinated Electric
Revenue Bonds, Series A, 5% due 7/01/2028 (f) 5,702
1,100 Santa Clara Valley, California, Water District, Water
Utility System Revenue, Series A, 5.125%
due 6/01/2010 (b)(g) 1,147
Santa Rosa, California, High School District, GO:
2,500 (Election of 2002), 5% due 8/01/2028 (f) 2,585
3,000 5.375% due 8/01/2026 (e) 3,172
6,750 Shasta, California, Joint Powers Financing Authority,
Lease Revenue Bonds (County Administration
Building Project), Series A, 5% due 4/01/2033 (f) 6,904
1,645 South Tahoe, California, Joint Powers Financing
Authority, Revenue Refunding Bonds (South Tahoe
Redevelopment Project Area No. 1), Series A, 5%
due 10/01/2029 (e) 1,687
5,000 Southern California Public Power Authority, Power
Project Revenue Bonds (Magnolia Power Project),
Series A-1, 5% due 7/01/2013 (a)(g) 5,389
2,600 Stockton, California, Public Financing Authority, Water
Revenue Bonds (Water System Capital Improvement
Projects), Series A, 5% due 10/01/2031 (f) 2,696
1,020 Stockton, California, Public Financing
Revenue Refunding Bonds, Series A, 5.875%
due 9/02/2016 (e) 1,029
1,500 Tehachapi, California, COP, Refunding (Installment
Sale), 5.75% due 11/01/2016 (e) 1,629
6,000 Tracy, California, Community Development Agency,
Tax Allocation Refunding Bonds, Series A, 5%
due 3/01/2034 (a) 6,134
3,000 Turlock, California, Public Finance Authority, Sewer
Revenue Bonds, Series A, 5% due 9/15/2033 (b) 3,088
University of California Revenue Bonds (g):
14,830 (Multiple Purpose Projects), Series Q, 5%
due 9/01/2011 (e) 15,794
4,790 Series O, 5.125% due 9/01/2010 (b) 5,058
Face
Amount Municipal Bonds Value
California (concluded)
$ 3,395 Ventura County, California, Community College
District, GO, Refunding, Series A, 5% due
8/01/2027 (f) $ 3,529
2,550 Vista, California, Unified School District, GO,
Series B, 5% due 8/01/2028 (b) 2,637
2,185 Walnut, California, Public Financing Authority, Tax
Allocation Revenue Bonds (Walnut Improvement
Project), 5.375% due 9/01/2021 (a) 2,316
6,690 West Contra Costa, California, Unified School
District, GO (Election of 2002), Series B, 5%
due 8/01/2032 (e) 6,844
Puerto Rico--5.9%
5,000 Puerto Rico Commonwealth, GO, 4.875%
due 7/01/2008 (f)(g) 5,098
4,335 Puerto Rico Commonwealth, Public Improvement,
GO, 5.75% due 7/01/2010 (f)(g) 4,589
7,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series UU, 5% due 7/01/2024 (e) 7,435
10,000 Puerto Rico Municipal Finance Agency, GO, RIB,
Series 225, 7.75% due 8/01/2012 (e)(h) 10,951
10,000 Puerto Rico Sales Tax Financing Corporation,
Sales Tax Revenue Refunding Bonds, Series A, 5.04%
due 8/01/2045 (f)(n) 1,518
Total Municipal Bonds
(Cost--$688,891)--142.6% 706,860
Municipal Bonds Held in Trust (o)
California--23.8%
10,000 East Bay Municipal Utility District, California,
Water System Revenue Bonds, Sub-Series A, 5%
due 6/01/2035 (f) 10,324
15,150 Long Beach, California, Harbor Revenue Bonds, AMT,
Series A, 5.375% due 5/15/2024 15,729
16,000 Los Angeles, California, Department of Water and
Power, Power System Revenue Refunding Bonds,
Series A, Sub-Series A-2, 5% due 7/1/2027 (f) 16,632
9,950 Port of Oakland, California, Port Revenue Bonds,
AMT, Series K, 5.75% due 11/01/2012 (b) 10,369
10,820 Port of Oakland, California, Revenue Bonds, AMT,
Series K, 5.75% due 11/01/2013 (b) 11,278
19,035 Port of Oakland, California, Revenue Refunding
Bonds, AMT, Series L, 5.375% due 11/01/2027 (b) 19,808
16,000 San Diego, California, Certificates of Undivided
Interest Revenue Bonds (Water Utility Fund), 5.20%
due 8/01/2024 (b) 16,325
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (o) Value
California (concluded)
$ 10,500 San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds,
Series A, 5% due 7/01/2034 (f) $ 10,850
8,137 San Jose, California, Financing Authority, Lease
Revenue Refunding Bonds (Civic Center Project),
Series B, 5% due 6/01/2032 (a) 8,302
Total Municipal Bonds Held in Trust
(Cost--$119,279)--23.8% 119,617
Shares
Held Short-Term Securities Value
49 CMA California Municipal Money
Fund, 2.88% (j)(k) $ 49
Total Short-Term Securities
(Cost--$49)--0.0% 49
Total Investments (Cost--$808,219*)--164.4% 826,526
Other Assets Less Liabilities--2.1% 10,624
Liability for Trust Certificates,
Including Interest Expense Payable--(11.8%) (59,087)
Preferred Stock, at Redemption Value--(54.7%) (275,208)
----------
Net Assets Applicable to Common Stock--100.0% $ 502,855
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 750,443
==============
Gross unrealized appreciation $ 19,351
Gross unrealized depreciation (1,484)
--------------
Net unrealized appreciation $ 17,867
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHLMC Collateralized.
(d) FNMA/GNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Escrowed to maturity.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA California Municipal Money Fund (1,075) $125
(k) Represents the current yield as of October 31, 2007.
(l) Assured Guaranty Insured.
(m) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(n) Represents a zero coupon bond; the interest rate shown is the effective
yield at the time of purchase.
(o) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Arizona--1.0%
$ 2,100 Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5% due 12/01/2037 $ 2,009
District of Columbia--0.5%
1,000 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series A,
5.25% due 10/01/2032 (f) 1,021
Florida--132.2%
2,100 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (b) 2,186
1,500 Arbor Greene Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds, 5% due 5/01/2019 1,543
2,420 Bay County, Florida, Sales Tax Revenue Bonds, 5%
due 9/01/2027 (b) 2,520
2,000 Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds (Commercial Project), Series A, 5.625%
due 5/01/2032 (o) 2,068
3,000 Brevard County, Florida, Health Facilities Authority,
Healthcare Facilities Revenue Bonds (Health First
Inc. Project), 5% due 4/01/2036 2,973
2,870 Broward County, Florida, Airport System Revenue
Bonds, AMT, Series I, 5.75% due 10/01/2018 (b) 3,063
Broward County, Florida, Educational Facilities
Authority Revenue Bonds (Nova Southeastern
University):
2,750 5% due 4/01/2031 (c) 2,828
1,000 Series B, 5.625% due 4/01/2034 1,025
1,470 Broward County, Florida, HFA, S/F Mortgage
Revenue Refunding Bonds, AMT, Series E, 5.90%
due 10/01/2039 (g)(h) 1,559
Cape Coral, Florida, Special Obligation Revenue
Bonds (m):
1,750 5% due 10/01/2023 1,835
2,060 5% due 10/01/2026 2,146
Citrus County, Florida, Hospital Board Revenue
Refunding Bonds (Citrus Memorial Hospital):
2,240 6.25% due 8/15/2023 2,380
2,850 6.375% due 8/15/2032 3,020
460 Collier County, Florida, IDA, IDR, Refunding (Southern
States Utilities), AMT, 6.50% due 10/01/2025 461
2,100 Collier County, Florida, School Board, COP, 5%
due 2/15/2027 (j) 2,174
Duval County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT (h):
805 5.40% due 10/01/2021 814
1,575 5.85% due 10/01/2027 (m) 1,623
Face
Amount Municipal Bonds Value
Florida (continued)
$ 1,800 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT, Series 3, 5.15%
due 7/01/2038 (g)(h) $ 1,797
430 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (j) 447
Florida Municipal Loan Council Revenue Bonds (m):
1,580 Series A-1, 5.125% due 7/01/2034 1,627
4,250 Series B, 5.375% due 11/01/2030 4,447
2,500 Florida State Board of Education, GO (Public
Education Capital Outlay), Series J, 5%
due 6/01/2031 2,566
1,000 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (b) 1,028
2,750 Fort Myers, Florida, Utility System Revenue Refunding
Bonds, 5% due 10/01/2031 (m) 2,840
4,500 Halifax Hospital Medical Center, Florida, Hospital
Revenue Refunding and Improvement Bonds,
Series A, 5.25% due 6/01/2026 4,581
2,000 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 2,040
1,055 Hillsborough County, Florida, Court Facilities Revenue
Bonds, 5.40% due 11/01/2012 (b)(n) 1,144
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
2,500 Series A, 7.125% due 4/01/2030 2,619
3,750 Series B, 7.125% due 4/01/2030 3,928
Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project):
3,200 Series A, 5.25% due 7/01/2037 3,226
1,000 Series C, 5.50% due 7/01/2032 1,018
1,500 Hillsborough County, Florida, School Board, COP, 5%
due 7/01/2029 (m) 1,530
1,000 Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue
Bonds (Mayo Clinic-Jacksonville), Series A, 5.50%
due 11/15/2036 (m) 1,062
Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project) AMT (a):
1,140 5.50% due 10/01/2030 1,152
2,800 5.875% due 6/01/2031 2,910
1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds,
Series B, 5.125% due 10/01/2032 (f) 1,555
2,315 Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (f) 2,434
1,000 Jacksonville, Florida, HFA, Homeowner Mortgage
Revenue Refunding Bonds, AMT, Series A-1, 5.625%
due 10/01/2039 (g)(h) 1,037
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 3,145 Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center
Project), 5% due 8/15/2037 (j) $ 3,206
3,800 Jacksonville, Florida, Sales Tax Revenue Bonds, 5%
due 10/01/2027 (m) 3,931
3,500 Lakeland, Florida, Hospital System Revenue Bonds
(Lakeland Regional Health System), Series A, 5.50%
due 11/15/2009 (m)(n) 3,671
3,375 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (b) 3,606
Lee County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT (h):
35 Series A-1, 7.125% due 3/01/2028 35
2,500 Series A-2, 6% due 9/01/2040 (g) 2,717
1,380 Lee County, Florida, IDA, Health Care Facilities,
Revenue Refunding Bonds (Shell Point/Alliance
Obligor Group), 5% due 11/15/2032 1,281
3,000 Lee Memorial Health System, Florida, Hospital
Revenue Bonds, Series A, 5% due 4/01/2032 (b) 3,070
105 Leon County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series B, 7.30%
due 1/01/2028 (g)(k) 108
1,400 Manatee County, Florida, HFA, Homeowner Revenue
Bonds, AMT, Series A, 5.90% due 9/01/2040 (g)(h) 1,487
115 Manatee County, Florida, HFA, S/F Mortgage
Revenue Refunding Bonds, AMT, Sub-Series 1, 6.25%
due 11/01/2028 (k) 116
1,000 Marco Island, Florida, Utility System Revenue Bonds,
5% due 10/01/2033 (m) 1,024
Martin County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Martin Memorial Medical
Center), Series A (n):
1,350 5.75% due 11/15/2012 1,489
3,535 5.875% due 11/15/2012 3,920
3,000 Miami Beach, Florida, Water and Sewer Revenue
Bonds, 5.75% due 9/01/2025 (b) 3,173
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A:
2,435 5% due 10/01/2033 (j) 2,442
4,300 (Miami International Airport), 6%
due 10/01/2029 (f) 4,553
8,060 (Miami International Airport), 5%
due 10/01/2033 (f) 8,088
1,750 Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A, 5.75% due 4/01/2010 (b)(n) 1,859
4,750 Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B, 5%
due 7/01/2033 (f) 4,866
1,800 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A, 5.55%
due 10/01/2049 (g)(h) 1,903
Face
Amount Municipal Bonds Value
Florida (continued)
$ 390 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.30% due 10/01/2020 (h) $ 394
2 Miami-Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding Bonds,
DRIVERS, Series 208, 7.466% due 8/15/2017 (b)(q) 3
Miami-Dade County, Florida, School Board, COP:
3,200 Series A, 5.50% due 10/01/2009 (j)(n) 3,321
2,500 Series B, 5% due 11/01/2031 (b) 2,568
2,800 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (m) 2,946
1,500 Orange County, Florida, Educational Facilities Authority,
Educational Facilities Revenue Bonds (Rollins
College Project), 5.25% due 12/01/2032 (b) 1,586
5,140 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6% due 12/01/2012 (n) 5,703
Orange County, Florida, School Board, COP, Series A:
10,500 5.25% due 8/01/2009 (m)(n) 10,918
1,600 5% due 8/01/2032 (f) 1,644
3,500 Orange County, Florida, Tourist Development, Tax
Revenue Refunding Bonds, 5% due 10/01/2029 (b) 3,613
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (b):
3,000 5% due 7/01/2030 3,076
10,185 5% due 7/01/2035 10,421
Orlando, Florida, Utilities Commission, Water and
Electric Revenue Refunding Bonds, Series C:
860 5.25% due 10/01/2012 (n) 926
140 5.25% due 10/01/2023 148
1,760 Osceola County, Florida, Tourist Development
Tax Revenue Bonds, Series A, 5.50%
due 10/01/2027 (f) 1,870
5,000 Palm Beach County, Florida, Airport System Revenue
Bonds, AMT, Series A, 5% due 10/01/2034 (m) 5,019
3,390 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (f) 4,131
Palm Beach County, Florida, School Board, COP,
Series A:
6,000 6.25% due 8/01/2010 (f)(n) 6,489
1,000 5% due 8/01/2029 (f) 1,024
2,200 5% due 8/01/2031 (j) 2,258
Pinellas County, Florida, HFA, S/F Housing Revenue
Refunding Bonds (Multi-County Program), AMT,
Series A-1 (h):
310 6.30% due 9/01/2020 313
460 6.35% due 9/01/2025 465
4,385 Polk County, Florida, School Board COP, Master
Lease, Series A, 5.50% due 1/01/2025 (j) 4,611
1,105 Port Everglades Authority, Florida, Port Revenue
Bonds, 7.125% due 11/01/2016 (e) 1,273
1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25%
due 9/01/2025 (m) 1,295
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 2,045 Reedy Creek, Florida, Improvement District, Utilities
Revenue Bonds, Series 1, 5% due 10/01/2025 (b) $ 2,129
1,000 Saint Johns County, Florida, Ponte Vedra Utility
System Revenue Bonds, 5% due 10/01/2035 (j) 1,027
Saint Johns County, Florida, Sales Tax Revenue
Bonds (b):
2,400 Series A, 5.25% due 10/01/2032 2,504
1,200 Series A, 5.25% due 10/01/2034 1,251
1,015 Series B, 5.25% due 10/01/2032 1,059
2,275 South Florida Water Management District, COP, 5%
due 10/01/2036 (b) 2,327
South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.):
1,000 5.80% due 10/01/2034 1,024
1,150 6.375% due 10/01/2034 1,207
Sumter County, Florida, Capital Improvement Revenue
Bonds (b):
2,190 5% due 6/01/2026 2,278
3,500 5% due 6/01/2030 3,611
5,000 Tampa Bay, Florida, Water Utility System Revenue
Bonds, 5.75% due 10/01/2011 (f)(n) 5,406
4,400 University of Central Florida, COP (UCF Convocation
Center), Series A, 5% due 10/01/2035 (f) 4,484
3,235 University of Central Florida (UCF) Athletics
Association Inc., COP, Series A, 5.25%
due 10/01/2034 (f) 3,361
2,400 University of North Florida, Capital Improvement
Revenue Bonds (Housing Project), 5%
due 11/01/2032 (f) 2,487
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (m):
1,995 5.375% due 11/01/2034 2,111
1,000 5.125% due 11/01/2036 1,034
5,040 Village Center Community Development
District, Florida, Utility Revenue Bonds, 5.125%
due 10/01/2028 (m) 5,216
1,000 Volusia County, Florida, IDA, Student Housing
Revenue Bonds (Stetson University Project), Series A,
5% due 6/01/2035 (d) 1,028
5,000 Volusia County, Florida, School Board, COP (Master
Lease Program), 5.50% due 8/01/2024 (j) 5,204
Georgia--1.7%
3,270 Atlanta, Georgia, Airport Passenger Facility Charge
and Subordinate Lien General Revenue Refunding
Bonds, Series C, 5% due 1/01/2033 (j) 3,348
New Jersey--3.6%
New Jersey EDA, Cigarette Tax Revenue Bonds:
3,500 5.50% due 6/15/2024 3,586
1,735 5.75% due 6/15/2029 1,817
505 5.50% due 6/15/2031 520
Face
Amount Municipal Bonds Value
New Jersey (concluded)
$ 1,000 Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (n) $ 1,169
Puerto Rico--3.4%
1,000 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5.25% due 7/01/2026 1,041
1,800 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series TT, 5% due 7/01/2037 1,827
2,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 2,013
1,715 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (n) 1,799
Total Municipal Bonds
(Cost--$271,576)--142.4% 280,664
Municipal Bonds Held in Trust (r)
Florida--21.3%
5,000 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5%, due 10/01/2040 (i) 5,006
16,000 Miami-Dade County, Florida, Expressway
Authority, Toll System Revenue Bonds, 6.375%
due 7/01/2010 (f)(n) 17,310
6,595 Miami-Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding Bonds
(Miami Children's Hospital), Series A, 5.625%
due 8/15/2011 (b)(n) 7,129
Santa Rosa County, Florida, School Board, COP,
Revenue Refunding Bonds, Series 2 (f):
1,180 5.25%, due 2/1/2026 1,239
1,820 5.25% due 2/01/2031 1,911
8,500 South Broward, Florida, Hospital District, Hospital
Revenue Bonds, 5.625%, due 5/1/2032 (m) 9,285
Total Municipal Bonds Held in Trust
(Cost--$40,712)--21.3% 41,880
Shares
Held Short-Term Securities
6,078 CMA Florida Municipal Money Fund, 2.81% (l)(p) 6,078
Total Short-Term Securities
(Cost--$6,078)--3.1% 6,078
Total Investments (Cost--$318,366*)--166.8% 328,622
Liabilities in Excess of Other Assets--(0.9%) (1,770)
Liability for Trust Certificates,
Including Interest Expense Payable--(10.0%) (19,776)
Preferred Shares, at Redemption Value--(55.9%) (110,062)
----------
Net Assets Applicable to Common Shares--100.0% $ 197,014
==========
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Florida Fund (In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 300,202
==============
Gross unrealized appreciation $ 10,276
Gross unrealized depreciation (1,403)
--------------
Net unrealized appreciation $ 8,873
==============
(a) ACA Insured.
(b) AMBAC Insured.
(c) Assured Guaranty Insured.
(d) CIFG Insured.
(e) Escrowed to maturity.
(f) FGIC Insured.
(g) FHLMC Collateralized.
(h) FNMA/GNMA Collateralized.
(i) XL Capital Insured.
(j) FSA Insured.
(k) GNMA Collateralized.
(l) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Florida Municipal Money Fund (1,381) $129
(m) MBIA Insured
(n) Prerefunded
(o) Radian Insured.
(p) Represents the current yield as of October 31, 2007.
(q) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(r) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
o Forward interest rate swaps outstanding as of October 31, 2007
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 4.019% and
receive a floating rate based on
1-week (SIFMA) Municipal Swap
Index Rate
Broker, JPMorgan Chase
Expires November 2022 $9,450 $ (152)
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan--134.2%
$ 2,400 Adrian, Michigan, City School District, GO, 5%
due 5/01/2014 (d)(f) $ 2,589
3,165 Anchor Bay, Michigan, School District, School
Building and Site, GO, Series II, 5.75%
due 5/01/2010 (c)(f) 3,339
2,275 Bay City, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2031 (d) 2,363
2,150 Bullock Creek, Michigan, School District, GO, 5.50%
due 5/01/2010 (e)(f) 2,255
3,850 Charlotte, Michigan, Public School District, GO,
5.375% due 5/01/2009 (c)(f) 3,958
2,420 Delta County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco-Escanaba),
Series A, 6.25% due 4/15/2012 (f) 2,680
Detroit, Michigan, City School District, GO:
2,000 (School Building and Site Improvement),
Series A, 5% due 5/01/2013 (c)(f) 2,141
1,480 (School Building and Site Improvement),
Series A, 5.375% due 5/01/2013 (c)(f) 1,612
1,900 (School Building and Site Improvement),
Series B, 5% due 5/01/2028 (c) 1,952
1,700 Series A, 5.50% due 5/01/2012 (d)(f) 1,837
Detroit, Michigan, Water Supply System Revenue
Bonds (e):
1,780 Second Lien, Series B, 5% due 7/01/2013 (f) 1,907
2,620 Second Lien, Series B, 5% due 7/01/2034 2,674
4,600 Senior Lien, Series A, 5% due 7/01/2034 4,695
2,500 Dickinson County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (International Paper Company
Project), Series A, 5.75% due 6/01/2016 2,609
2,170 Dickinson County, Michigan, Healthcare System,
Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (h) 2,220
East Grand Rapids, Michigan, Public School District,
GO (d)(f):
1,610 5.75% due 5/01/2009 1,664
6,300 6% due 5/01/2009 6,534
Eaton Rapids, Michigan, Public Schools, School
Building and Site, GO (d):
880 5% due 5/01/2014 (f) 949
2,000 5.25% due 5/01/2023 2,141
1,000 5% due 5/01/2026 1,036
370 5% due 5/01/2029 382
Flint, Michigan, Hospital Building Authority,
Revenue Refunding Bonds (Hurley Medical Center),
Series A (h):
385 5.375% due 7/01/2020 389
775 6% due 7/01/2020 817
1,800 Fowlerville, Michigan, Community Schools, School
District, GO, 5% due 5/01/2030 (c) 1,858
Gibraltar, Michigan, School District, GO (School
Building and Site) (c):
3,065 5% due 5/01/2014 (f) 3,306
585 5% due 5/01/2028 605
Face
Amount Municipal Bonds Value
Michigan (continued)
Grand Blanc, Michigan, Community Schools, GO (c):
$ 1,000 5.625% due 5/01/2017 $ 1,076
1,000 5.625% due 5/01/2018 1,071
1,100 5.625% due 5/01/2019 1,178
Grand Rapids, Michigan, Building Authority Revenue
Bonds, Series A (a):
665 5.50% due 10/01/2012 (f) 723
805 5.50% due 10/01/2018 868
190 5.50% due 10/01/2019 205
1,500 Grand Rapids, Michigan, Sanitation Sewer System
Revenue Refunding and Improvement Bonds,
Series A, 5.50% due 1/01/2022 (c) 1,693
Harper Woods, Michigan, City School District, School
Building and Site, GO, Refunding (c):
215 5% due 5/01/2014 (f) 232
10 5% due 5/01/2034 10
4,500 Hartland, Michigan, Consolidated School District,
GO, 6% due 5/01/2010 (c)(f) 4,774
1,275 Haslett, Michigan, Public School District,
School Building and Site, GO, 5.625%
due 11/01/2011 (e)(f) 1,375
2,660 Hudsonville, Michigan, Public Schools, School
Building and Site, GO, 5% due 5/01/2029 (d) 2,749
3,975 Jackson, Michigan, Public Schools, GO, 5.375%
due 5/01/2010 (c)(f) 4,158
3,000 Kent, Michigan, Hospital Finance Authority
Revenue Bonds (Spectrum Health), Series A 5.50%
due 7/15/2011 (e)(f) 3,228
1,440 Ludington, Michigan, Area School District, GO,
5.25% due 5/01/2023 (e) 1,537
1,125 Michigan Higher Education Facilities Authority,
Limited Obligation Revenue Bonds (Hillsdale College
Project), 5% due 3/01/2035 1,127
1,000 Michigan Higher Education Facilities Authority,
Limited Obligation Revenue Refunding Bonds (Hope
College), Series A, 5.90% due 4/01/2032 1,026
Michigan Higher Education Facilities Authority,
Revenue Refunding Bonds (College for Creative
Studies):
550 5.85% due 12/01/2022 574
1,000 5.90% due 12/01/2027 1,040
Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT (a):
3,000 Series XVII-B, 5.40% due 6/01/2018 3,046
500 Series XVII-Q, 5% due 3/01/2031 504
2,850 Michigan State Building Authority, Facilities Program
Revenue Refunding Bonds, Series I, 5.50%
due 10/15/2009 (b) 2,960
Michigan State Building Authority Revenue Bonds
(Facilities Program), Series II (a)(b)(j):
1,185 4.67% due 10/15/2009 1,104
1,675 4.77% due 10/15/2010 1,503
Michigan State Building Authority, Revenue
Refunding Bonds (Facilities Program), Series II:
2,000 5% due 10/15/2029 (e) 2,055
2,100 5% due 10/15/2033 (a) 2,164
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 3,870 Michigan State, COP, 5.50% due 6/01/2010 (a)(f) $ 4,063
1,000 Michigan State, Comprehensive Transportation
Revenue Refunding Bonds, 5% due 5/15/2026 (d) 1,046
1,000 Michigan State, HDA, Limited Obligation M/F
Housing Revenue Bonds (Deaconess Towers
Apartments), AMT, 5.25% due 2/20/2048 (l) 1,001
Michigan State, HDA, Rental Housing Revenue
Bonds, AMT:
285 Series A, 5.30% due 10/01/2037 (e) 286
1,500 Series B, 4.85% due 10/01/2037 (d) 1,432
1,500 Series D, 5.125% due 4/01/2031 (d) 1,506
1,000 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mid-Michigan Obligation Group),
Series A, 5.50% due 4/15/2018 (a) 1,054
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
1,300 (Crittenton Hospital), Series A, 5.625%
due 3/01/2027 1,349
5,100 (Oakwood Obligated Group), Series A, 5%
due 7/15/2037 5,045
1,250 (Sparrow Obligation Group), 5.625%
due 11/15/2011 (f) 1,358
2,495 (Sparrow Obligated Group), 5%
due 11/15/2031 2,491
Michigan State Hospital Finance Authority Revenue
Bonds (a):
2,000 (Mercy Health Services), Series R, 5.375%
due 8/15/2026 (b) 2,012
5,670 (Mid-Michigan Obligor Group), Series A, 5%
due 4/15/2036 5,619
1,000 (Trinity Health Credit Group), Series A, 5%
due 12/01/2031 1,012
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:
7,000 (Ascension Health Credit), Series A, 6.125%
due 11/15/2009 (e)(f) 7,419
3,760 (Ascension Health Credit), Series A, 6.25%
due 11/15/2009 (e)(f) 3,995
1,345 (Henry Ford Health System), Series A, 5.25%
due 11/15/2032 1,369
4,065 (Henry Ford Health System), Series A, 5%
due 11/15/2038 4,021
3,215 (Mercy Health Services), Series X, 6%
due 8/15/2009 (e)(f) 3,384
2,000 (Mercy-Mount Clemens), Series A, 5.75%
due 5/15/2009 (e)(f) 2,086
1,000 (Mercy-Mount Clemens), Series A, 6%
due 5/15/2009 (e)(f) 1,047
1,000 (Trinity Health Credit), Series C, 5.375%
due 12/01/2023 1,042
3,450 (Trinity Health Credit), Series C, 5.375%
due 12/01/2030 3,575
1,900 (Trinity Health Credit Group), Series D, 5%
due 8/15/2034 1,912
5,500 (Trinity Health), Series A, 6%
due 12/01/2027 (a) 5,862
Face
Amount Municipal Bonds Value
Michigan (continued)
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds:
$ 9,500 (Detroit Edison Company Pollution
Control Project), AMT, Series A, 5.55%
due 9/01/2029 (e) $ 9,836
2,000 (Detroit Edison Company Pollution Control
Project), Series AA, 6.95% due 5/01/2011 (c) 2,216
1,375 (Dow Chemical Company Project), AMT, 5.50%
due 12/01/2028 1,423
6,500 Monroe County, Michigan, Economic Development
Corporation, Limited Obligation Revenue Refunding
Bonds (Detroit Edison Co. Project), Series AA,
6.95% due 9/01/2022 (c) 8,336
1,200 New Lothrop, Michigan, Area Public Schools, School
Building and Site, GO, 5% due 5/01/2035 (d) 1,239
600 Oak Park, Michigan, Street Improvement, GO, 5%
due 5/01/2030 (e) 624
1,000 Plainwell, Michigan, Community Schools, School
District, School Building and Site, GO, 5.50%
due 11/01/2012 (d)(f) 1,088
1,000 Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 3), 5.375% due 6/01/2017 (h) 1,029
1,000 Reed, Michigan, City Public Schools, School
Building and Site, GO, 5% due 5/01/2014 (d)(f) 1,079
1,500 Romulus, Michigan, Community Schools, GO, 5.75%
due 5/01/2009 (c)(f) 1,550
1,050 Roseville, Michigan, School District, School Building
and Site, GO, Refunding, 5% due 5/01/2031 (d) 1,090
Saginaw Valley State University, Michigan, General
Revenue Refunding Bonds (c):
1,450 5% due 7/01/2024 1,509
1,000 5% due 7/01/2034 1,028
2,500 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Company), RIB,
Series 282, 9.02% due 8/01/2024 (a)(g) 2,694
2,650 South Lyon, Michigan, Community Schools, GO,
Series A, 5.75% due 5/01/2010 (e)(f) 2,795
Southfield, Michigan, Public Schools, School
Building and Site, GO, Series A(d)(f):
1,000 5% due 5/01/2014 1,079
1,950 5.25% due 5/01/2014 2,131
1,000 Sparta, Michigan, Area Schools, School Building
and Site, GO, 5% due 5/01/2014 (c)(f) 1,079
1,500 Thornapple Kellogg School District, Michigan, GO,
Refunding, 5% due 5/01/2032 (e) 1,561
6,500 Wayne Charter County, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County), AMT,
Series A, 5.375% due 12/01/2015 (e) 6,655
1,180 Wayne Charter County, Michigan, Detroit
Metropolitan Airport, GO, Airport Hotel, Series A, 5%
due 12/01/2030 (e) 1,209
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (concluded)
Wayne County, Michigan, Airport Authority Revenue
Bonds AMT (e):
$ 3 DRIVERS, Series 1081-Z, 6.671%
due 6/01/2013 (g) $ 3
5,200 (Detroit Metropolitan Wayne County Airport), 5%
due 12/01/2034 5,221
5,300 Wyoming, Michigan, Sewage Disposal System
Revenue Bonds, 5% due 6/01/2030 (e) 5,496
1,330 Zeeland, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (e) 1,375
Puerto Rico--6.0%
5,300 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation
Revenue Refunding Bonds, Series N, 5.25%
due 7/01/2039 (c) 5,900
30,000 Puerto Rico Sales Tax Financing Corporation, Sales
Tax Revenue Refunding Bonds, Series A, 4.99%
due 8/01/2046 (e)(j) 4,317
Total Municipal Bonds
(Cost--$228,274)--140.2% 239,040
Municipal Bonds Held in Trust (m)
Michigan--22.7%
2,700 Detroit, Michigan, Water Supply System,
Senior Lien Revenue Bonds, Series A, 5.75%
due 7/01/2011 (c)(f) 2,927
7,000 Michigan State Building Authority, Revenue
Refunding Bonds (Facilities Program), Series I,
5.50% due 10/15/2010 (d) 7,453
Face
Amount Municipal Bonds Held in Trust (m) Value
Michigan (concluded)
Michigan State, COP, Refunding (New Center
Development Inc.) (b)(e):
$ 5,715 5.75% due 9/01/2010 $ 6,115
5,045 5.75% due 9/01/2011 5,398
8,000 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Co. Project),
Series AA, 6.40% due 8/01/2024 (a) 8,311
Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT (e):
4,475 5.25% due 12/01/2025 4,640
3,700 5.25% due 12/01/2026 3,837
Puerto Rico--2.8%
4,540 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.75% due 7/01/2010 (d)(f) 4,853
Total Municipal Bonds Held in Trust
(Cost--$44,095)--25.5% 43,534
Shares
Held Short-Term Securities
3,886 CMA Michigan Municipal Money Fund, 2.85% (i)(k) 3,886
Total Short-Term Securities
(Cost--$3,886)--2.3% 3,886
Total Investments (Cost--$276,255*)--168.0% 286,460
Other Assets Less Liabilities--2.4% 4,299
Liability for Trust Certificates,
Including Interest Expense Payable--(12.4%) (21,179)
Preferred Stock, at Redemption Value--(58.0%) (99,021)
----------
Net Assets Applicable to Common Stock--100.0% $ 170,559
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 255,381
==============
Gross unrealized appreciation $ 11,597
Gross unrealized depreciation (1,514)
--------------
Net unrealized appreciation $ 10,083
==============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) ACA Insured.
(i) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (828) $72
(j) Represents a zero coupon bond; the interest rate shown is the effective
yield at the time of purchase.
(k) Represents the current yield as of October 31, 2007.
(l) GNMA Collateralized.
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York--123.5%
$ 23,790 Albany County, New York, Airport Authority, Airport
Revenue Bonds, AMT, 6% due 12/15/2023 (c)(q) $ 24,320
4,300 Buffalo, New York, Sewer Authority, Revenue
Refunding Bonds, Series F, 6% due 7/01/2013 (b) 4,690
Buffalo, New York, School, GO, Series D (b):
1,250 5.50% due 12/15/2014 1,343
1,500 5.50% due 12/15/2016 1,613
1,700 Dutchess County, New York, Resource Recovery
Agency Revenue Bonds (Solid Waste System-
Forward), Series A, 5.40% due 1/01/2013 (d) 1,797
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project) (c):
1,900 5.75% due 5/01/2020 2,059
4,250 5.75% due 5/01/2024 4,457
15,075 Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A, 4.50% due 2/15/2047 (d) 14,355
Huntington, New York, GO, Refunding (a):
485 5.50% due 4/15/2011 517
460 5.50% due 4/15/2012 499
455 5.50% due 4/15/2013 497
450 5.50% due 4/15/2014 496
450 5.50% due 4/15/2015 501
1,675 Ilion, New York, Central School District, GO, Series B,
5.50% due 6/15/2010 (b)(e) 1,778
Long Island Power Authority, New York, Electric
System Revenue Bonds:
7,000 Series A, 5% due 9/01/2029 (a) 7,241
7,950 Series A, 5% due 9/01/2034 (a) 8,182
4,000 Series B, 5% due 12/01/2035 (c) 4,141
2,970 Series F, 4.25% due 5/01/2033 (d) 2,767
4,250 Madison County, New York, IDA, Civic Facility Revenue
Bonds (Colgate University Project), Series A, 5%
due 7/01/2035 (a) 4,392
10,000 Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Refunding Bonds,
Series B, 4.875% due 7/01/2018 (b)(h) 10,176
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds:
5,000 Series A, 5% due 11/15/2035 (d) 5,184
600 VRDN, Series D-1, 3.39% due 11/01/2034 (a)(f) 600
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Refunding Bonds,
Series A:
10,600 5% due 11/15/2030 (d) 10,889
1,015 5% due 11/15/2032 (c) 1,043
Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds:
3,900 RIB, Series 724X, 7.78% due 11/15/2032 (c)(g) 4,517
1,740 Series A, 5.125% due 11/15/2022 (b) 1,837
10,455 Series A, 5% due 11/15/2030 (c) 10,726
2,500 Series A, 5.25% due 11/15/2031 (b) 2,637
1,500 Series B, 5% due 11/15/2028 (d) 1,554
2,000 Metropolitan Transportation Authority, New York,
Service Contract Revenue Refunding Bonds, Series A,
5% due 7/01/2025 (b) 2,076
Face
Amount Municipal Bonds Value
New York (continued)
Metropolitan Transportation Authority, New York,
Transit Facilities Revenue Refunding Bonds,
Series C (c)(e):
$ 2,025 5.125% due 1/01/2012 $ 2,153
2,500 5.125% due 1/01/2012 2,669
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A (b):
3,000 5% due 11/15/2032 3,082
4,150 4.75% due 11/15/2037 4,170
Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F (d):
6,235 5.25% due 11/15/2012 (e) 6,735
5,000 5% due 11/15/2031 5,142
Monroe County, New York, IDA, Revenue Bonds
(Southview Towers Project), AMT (u):
1,400 6.125% due 2/01/2020 1,466
1,125 6.25% due 2/01/2031 1,178
10,830 Nassau Health Care Corporation, New York,
Health System Revenue Bonds, 5.75%
due 8/01/2009 (c)(e) 11,462
New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, AMT:
1,500 Series C, 5% due 11/01/2026 1,498
2,000 Series C, 5.05% due 11/01/2036 2,017
1,340 Series H-1, 4.70% due 11/01/2040 1,256
1,000 Series J-2-A, 4.85% due 11/01/2040 954
1,275 New York City, New York, City IDA, Civic Facility
Revenue Refunding Bonds (Nightingale-Bamford
School), 5.25% due 1/15/2018 (a) 1,357
6,550 New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6% due 11/01/2015 (c) 6,570
7,970 New York City, New York, City IDA, Parking Facility
Revenue Bonds (Royal Charter-New York Presbyterian),
5.75% due 12/15/2029 (c) 8,656
New York City, New York, City IDA, PILOT Revenue
Bonds:
14,000 (Queens Baseball Stadium Project), 5%
due 1/01/2036 (a) 14,456
5,750 (Queens Baseball Stadium Project), 5%
due 1/01/2039 (a) 5,937
9,900 (Queens Baseball Stadium Project), 5%
due 1/01/2046 (a) 10,133
5,150 (Yankee Stadium Project), 5%
due 3/01/2036 (d) 5,313
16,900 (Yankee Stadium Project), 5%
due 3/01/2046 (b) 17,287
1,500 New York City, New York, City IDA, Special Facility
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,571
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds:
6,750 5% due 6/15/2036 (d) 6,984
2,850 Series A, 5.75% due 6/15/2009 (b)(e) 2,982
3,000 Series A, 4.25% due 6/15/2039 (c) 2,778
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
New York City, New York, City Municipal Water
Finance Authority, Water and Sewer System,
Revenue Refunding Bonds:
$ 5,000 5.50% due 6/15/2010 (d)(e) $ 5,307
1,250 Series A, 5.125% due 6/15/2034 (d) 1,297
4,500 Series A, 5% due 6/15/2035 (a) 4,609
1,250 Series C, 5% due 6/15/2035 (d) 1,285
500 Series F, 5% due 6/15/2029 (c) 510
1,020 New York City, New York, City Transit Authority,
Metropolitan Transportation Authority, Triborough,
COP, Series A, 5.625% due 1/01/2012 (a) 1,074
New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds (b):
6,000 Series S-1, 5% due 7/15/2031 6,251
6,280 Series S-2, 4.25% due 1/15/2034 5,878
New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds:
800 Series B, 6.25% due 5/15/2010 (e) 863
6,805 Series B, 6.25% due 5/15/2010 (b)(e) 7,335
16,195 Series C, 5% due 2/01/2033 (b) 16,640
2,500 Series E, 5.25% due 2/01/2022 (d) 2,654
3,000 New York City, New York, City Transitional Finance
Authority, Future Tax Secured, Revenue Refunding
Bonds, Series D, 5.25% due 2/01/2021 (d) 3,195
1,000 New York City, New York, City Transitional Finance
Authority, Revenue Refunding Bonds, Series A, 5%
due 11/15/2026 (b) 1,040
New York City, New York, GO:
3,000 Series A, 5.75% due 5/15/2010 (b)(e) 3,198
4,000 Series A, 5% due 8/01/2030 4,108
1,220 Series B, 5.75% due 8/01/2010 (d)(e) 1,306
1,280 Series B, 5.75% due 8/01/2013 (d) 1,365
3,750 Series D, 5.25% due 10/15/2013 (e) 4,094
8,000 Series J, 5% due 5/15/2023 8,279
4,000 Series M, 5% due 4/01/2035 4,084
New York City, New York, GO, Refunding:
895 Series A, 6.375% due 5/15/2010 (b)(e) 967
70 Series B, 7% due 2/01/2018 (a) 70
1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,210
3,100 New York City, New York, IDA, Civic Facility Revenue
Refunding Bonds (Polytechnic University), 5.25%
due 11/01/2037 (n) 3,036
11,200 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%
due 10/15/2032 (a) 11,633
4,250 New York City, New York, Trust for Cultural Resources,
Revenue Refunding Bonds (American Museum of
Natural History), Series A, 5% due 7/01/2036 (d) 4,368
2,100 New York Convention Center Development
Corporation, New York, Revenue Bonds (Hotel Unit
Fee Secured), 5% due 11/15/2030 (a) 2,177
1,000 New York State Dormitory Authority, Consolidated
Revenue Refunding Bonds (City University System),
Series 1, 5.625% due 1/01/2008 (c)(e) 1,023
Face
Amount Municipal Bonds Value
New York (continued)
$ 2,800 New York State Dormitory Authority, Lease Revenue
Bonds (State University Dormitory Facilities), 5%
due 7/01/2037 $ 2,906
New York State Dormitory Authority, Non-State
Supported Debt Revenue Bonds:
1,250 (Health Quest Systems), Series B, 5.125%
due 7/01/2037 1,289
850 (School District Financing Program), Series A, 5%
due 10/01/2035 (c) 884
2,100 New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (Mount
Sinai School of Medicine of New York University), 5%
due 7/01/2035 2,181
New York State Dormitory Authority Revenue Bonds:
3,330 (Eger Health Care and Rehabilitation Center),
6.10% due 8/01/2037 (i) 3,545
1,500 (Long Island University), Series B, 5.25%
due 9/01/2028 (k) 1,526
1,180 (New York State Rehabilitation Association),
Series A, 5.25% due 7/01/2019 (j) 1,255
1,000 (New York State Rehabilitation Association),
Series A, 5.125% due 7/01/2023 (j) 1,042
1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,094
6,900 (School Districts Financing Program), Series E,
5.75% due 10/01/2030 (d) 7,434
3,560 (State University Adult Facilities), Series B,
5.75% due 5/15/2010 (c)(e) 3,795
1,780 (Upstate Community Colleges), Series A, 6%
due 7/01/2010 (c)(e) 1,913
New York State Dormitory Authority, Revenue
Refunding Bonds:
2,465 (City University System), Series C, 7.50%
due 7/01/2010 (b) 2,610
1,370 (School District Financing Program), Series I,
5.75% due 10/01/2018 (d) 1,495
New York State Dormitory Authority, Supported Debt
Revenue Bonds:
1,570 (Mental Health Facilities), Series B, 5.25%
due 2/15/2014 (e) 1,715
270 (Mental Health Facilities), Series B, 5.25%
due 2/15/2023 284
3,000 (State University Dormitory Facilities), Series A,
5% due 7/01/2031 (d) 3,120
1,000 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (j) 1,039
18,750 New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT,
Series A, 4.70% due 2/01/2024 (b) 18,671
3,500 New York State Environmental Facilities Corporation,
Special Obligation Revenue Refunding Bonds
(Riverbank State Park), 6.25% due 4/01/2012 (a) 3,763
1,675 New York State, GO, Series A, 4.125%
due 3/01/2037 (b) 1,507
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 3,750 New York State, HFA, M/F Housing Revenue Bonds
(Saint Philips Housing), AMT, Series A, 4.65%
due 11/15/2038 (r) $ 3,642
800 New York State, HFA, State Personal Income Tax
Revenue Bonds (Economic Development and
Housing), Series A, 5% due 9/15/2023 (d) 834
New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT:
1,915 Series 130, 4.80% due 10/01/2037 1,816
1,000 Series 143, 4.90% due 10/01/2037 963
1,540 New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds, AMT,
Series 133, 4.95% due 10/01/2021 1,544
6,000 New York State Thruway Authority, General Revenue
Bonds, Series F, 5% due 1/01/2030 (a) 6,211
New York State Thruway Authority, General Revenue
Refunding Bonds (c):
8,000 Series G, 4.75% due 1/01/2029 8,112
17,750 Series G, 4.75% due 1/01/2030 17,954
2,820 New York State Thruway Authority, Highway and
Bridge Trust Fund Revenue Bonds, Series A, 6.25%
due 4/01/2011 (c) 3,023
New York State Thruway Authority, Local Highway and
Bridge Service Contract Revenue Bonds (e):
3,000 5.75% due 4/01/2010 (a) 3,190
1,000 Series A-2, 5.375% due 4/01/2008 (d) 1,018
4,380 New York State Thruway Authority, Second General
Highway and Bridge Trust Fund Revenue Bonds,
Series A, 5% due 4/01/2026 (a) 4,591
New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds:
3,000 Series C-1, 5% due 3/15/2013 (d)(e) 3,215
5,000 (State Facilities), Series A-1, 5%
due 3/15/2029 (b) 5,168
3,190 New York State Urban Development Corporation,
Revenue Refunding Bonds (Correctional Capital
Facilities), Series A, 6.50% due 1/01/2011 (c) 3,472
650 Niagara Falls, New York, City School District,
COP, Refunding (High School Facility), 5%
due 6/15/2028 (c) 673
1,000 Niagara Falls, New York, GO (Water Treatment Plant),
AMT, 7.25% due 11/01/2010 (d) 1,104
2,705 Niagara, New York, Frontier Authority, Airport Revenue
Bonds (Buffalo Niagara International Airport),
Series B, 5.50% due 4/01/2019 (d) 2,799
1,260 North Country, New York, Development Authority,
Solid Waste Management System, Revenue
Refunding Bonds, 6% due 5/15/2015 (c) 1,382
North Hempstead, New York, GO, Refunding,
Series B (b):
1,745 6.40% due 4/01/2013 1,980
555 6.40% due 4/01/2017 660
1,665 Oneida County, New York, IDA, Civic Facilities
Revenue Bonds (Mohawk Valley), Series A, 5.20%
due 2/01/2013 (c) 1,704
Face
Amount Municipal Bonds Value
New York (continued)
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT:
$ 2,500 137th Series, 5.125% due 7/15/2030 (c) $ 2,577
1,000 141st Series, 4.50% due 9/01/2035 (j) 932
15,000 Port Authority of New York and New Jersey,
Revenue Refunding Bonds, AMT, 120th Series, 6%
due 10/15/2032 (d) 15,162
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds, AMT (d):
2 DRIVERS, Series 278, 7.736%
due 12/01/2022 (g) 3
14,750 (JFK International Air Terminal), Series 6, 6.25%
due 12/01/2010 15,836
7,175 (JFK International Air Terminal LLC), Series 6,
6.25% due 12/01/2011 7,842
3,500 (JFK International Air Terminal LLC), Series 6,
5.75% due 12/01/2025 3,505
4,425 (Special Project-JFK International Air Terminal),
Series 6, 6.25% due 12/01/2013 4,963
7,380 (Special Project-JFK International Air Terminal),
Series 6, 6.25% due 12/01/2014 8,386
1,255 Rensselaer County, New York, IDA, Civic Facility
Revenue Bonds (Rensselaer Polytechnic Institute),
Series B, 5.50% due 8/01/2022 (a) 1,304
2,500 Rensselaer, New York, City School District, COP, 5%
due 6/01/2036 (l) 2,581
1,500 Rochester, New York, Housing Authority, Mortgage
Revenue Bonds (Andrews Terrace Apartments
Project), AMT, 4.70% due 12/20/2038 (s) 1,402
1,000 Suffolk County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Dowling College), Series A, 5%
due 6/01/2036 (n) 945
4,625 Suffolk County, New York, IDA, IDR (Keyspan-Port
Jefferson), AMT, 5.25% due 6/01/2027 4,694
Suffolk County, New York, IDA, Solid Waste Disposal
Facility, Revenue Refunding Bonds (Ogden Martin
System Huntington Project), AMT, (a):
8,530 6% due 10/01/2010 9,065
9,170 6.15% due 10/01/2011 9,946
6,470 6.25% due 10/01/2012 7,142
1,750 Suffolk County, New York, Public Improvement, GO,
Series B, 4.50% due 11/01/2024 (d) 1,773
11,500 Syracuse, New York, IDA, PILOT Revenue Bonds
(Carousel Center Project), AMT, Series A, 5%
due 1/01/2036 (l) 11,609
Tobacco Settlement Financing Corporation of New
York Revenue Bonds:
5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,318
2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,121
2,000 Series C-1, 5.50% due 6/01/2021 2,135
1,900 Series C-1, 5.50% due 6/01/2022 2,025
Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Refunding Bonds:
2,305 Series Y, 6% due 1/01/2012 (d)(h) 2,449
100 VRDN, Series C, 3.39% due 1/01/2032 (a)(f) 100
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (concluded)
Triborough Bridge and Tunnel Authority, New York,
Revenue Refunding Bonds (d):
$ 7,000 5.25% due 11/15/2023 $ 7,452
19,675 5% due 11/15/2032 20,215
2,265 Series A, 5% due 1/01/2012 (e) 2,397
1,500 Series B, 5% due 11/15/2032 1,541
Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds:
2,465 5% due 11/15/2028 (a) 2,553
6,000 Series A, 5.25% due 11/15/2030 (d) 6,281
1,050 Western Nassau County, New York, Water Authority,
Water System Revenue Refunding Bonds, 5%
due 5/01/2035 (a) 1,082
2,010 Yonkers, New York, GO, Series A, 5.75%
due 10/01/2010 (b)(e) 2,158
Guam--0.8%
A.B. Won Guam International Airport Authority,
General Revenue Refunding Bonds, AMT,
Series C, (d):
2,240 5.25% due 10/01/2021 2,313
2,050 5.25% due 10/01/2022 2,117
Puerto Rico--10.5%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds (b):
655 Series G, 5.25% due 7/01/2013 (e) 713
2,265 Series G, 5.25% due 7/01/2019 2,424
345 Series G, 5.25% due 7/01/2021 372
1,250 Trust Receipts, Class R, Series B, 7.934%
due 7/01/2035 (d)(g) 1,432
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
3,000 Series D, 5.75% due 7/01/2012 (e) 3,285
4,100 Series N, 5.25% due 7/01/2039 (b) 4,564
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (o):
22,030 4.62% due 7/01/2031 (b) 7,103
3,900 4.67% due 7/01/2035 (a) 1,023
8,000 4.77% due 7/01/2043 (a) 1,375
1,000 Puerto Rico Commonwealth, Public Improvement,
GO, Refunding, Series B, 5.25% due 7/01/2032 1,032
1,000 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5.25% due 7/01/2030 1,037
4,000 Puerto Rico Convention Center District Authority,
Hotel Occupancy Tax Revenue Bonds, Series A, 5%
due 7/01/2031 (a) 4,159
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
Puerto Rico Electric Power Authority, Power
Revenue Bonds (e):
$ 975 Series NN, 5.125% due 7/01/2013 $ 1,055
3,775 Series NN, 5.125% due 7/01/2013 4,086
5,000 Series RR, 5% due 7/01/2015 (j) 5,448
7,095 Series RR, 5% due 7/01/2015 (l) 7,730
7,100 Series RR, 5% due 7/01/2015 (b) 7,736
3,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 2/01/2012 (e) 3,228
Total Municipal Bonds
(Cost--$722,629)--134.8% 741,395
Municipal Bonds Held in Trust (t)
New York--32.9%
50,000 Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds, Series A, 5.75%,
due 11/15/2032 (c) 53,956
25,000 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 5.75%, due 6/15/2011 (d)(e) 26,897
22,085 New York City, New York, GO, Series C, 5.75%,
due 3/15/2027 (c) 24,092
New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds (a):
13,000 Series A, 5.25%, due 10/15/2027 13,717
16,000 Series A, 5%, due 10/15/2032 16,883
33,750 New York Convention Center Development
Corporation, New York, Revenue Bonds (Hotel Unit
Fee Secured), 5%, due 11/15/2035 (a) 34,808
10,155 Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air
Terminal), AMT, Series 6, 5.75%, due 12/01/2022 (d) 10,372
Total Municipal Bonds Held in Trust
(Cost--$177,064)--32.9% 180,725
Shares
Held Short-Term Securities
5,296 CMA New York Municipal Money Fund, 2.88% (m)(p) 5,296
Total Short-Term Securities
(Cost--$5,296)--0.9% 5,296
Total Investments (Cost--$904,989*)--168.6% 927,416
Other Assets Less Liabilities--2.3% 12,765
Liability for Trust Certificates,
Including Interest Expense Payable--(15.6%) (86,040)
Preferred Stock, at Redemption Value--(55.3%) (304,231)
----------
Net Assets Applicable to Common Stock--100.0% $ 549,910
==========
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield New York Insured Fund, Inc. (In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 821,655
==============
Gross unrealized appreciation $ 23,892
Gross unrealized depreciation (3,126)
--------------
Net unrealized appreciation $ 20,766
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) Escrowed to maturity.
(i) FHA Insured.
(j) CIFG Insured.
(k) Radian Insured.
(l) XL Capital Insured.
(m) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New York Municipal Money Fund 3,692 $91
(n) ACA Insured.
(o) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(p) Represents the current yield as of October 31, 2007.
(q) All or a portion of security held as collateral in connection with open
financial futures contracts.
(r) FNMA Collateralized.
(s) GNMA Collateralized.
(t) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
(u) Credit Enhanced-SONYMA Insured.
o Financial futures contracts sold as of October 31, 2007 were as follows:
Number of Expiration Face Unrealized
Contracts Issue Date Value Appreciation
250 30-Year U.S.
Treasury Note December 2007 $ 28,454 $ 306
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Net Assets
BlackRock
BlackRock BlackRock MuniYield
MuniYield MuniYield California
Arizona California Insured
As of October 31, 2007 Fund, Inc. Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 106,298,995 $ 521,447,475 $ 826,477,475
Investments in affiliated securities, at value** 651,278 7,844,812 49,050
Cash -- 48,749 865
Unrealized appreciation on forward interest rate swaps 7,767 -- --
Receivable for securities sold 100,000 -- --
Interest receivable 1,809,179 7,821,040 13,012,265
Prepaid expenses 3,702 2,275 3,219
--------------- --------------- ---------------
Total assets 108,870,921 537,164,351 839,542,874
--------------- --------------- ---------------
Liabilities
Trust certificates 4,835,000 48,967,500 58,216,110
Bank overdraft 71,254 -- --
Interest expense payable 60,525 538,465 871,294
Dividends payable to Common Stock shareholders 258,187 1,171,239 1,924,227
Payable to investment adviser 43,803 206,141 331,021
Payable to other affiliates 602 2,804 4,506
Accrued expenses 59,361 116,946 132,650
--------------- --------------- ---------------
Total liabilities 5,328,732 51,003,095 61,479,808
--------------- --------------- ---------------
Preferred Stock
Preferred Stock, at redemption value of AMPS+++ at $25,000 per share
liquidation preference*** 40,313,751 175,227,586 275,208,295
--------------- --------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 63,228,438 $ 310,933,670 $ 502,854,771
=============== =============== ===============
Net Assets Consist of
Undistributed investment income--net $ 311,568 $ 1,349,213 $ 1,243,580
Undistributed (accumulated) realized capital gains (losses)--net 529,988 (1,308,890) (14,356,963)
Unrealized appreciation--net 2,165,587 9,294,942 18,307,368
--------------- --------------- ---------------
Total accumulated earnings--net 3,007,143 9,335,265 5,193,985
Common Stock, par value $.10 per share++ 452,959 2,129,526 3,436,120
Paid-in capital in excess of par 59,768,336 299,468,879 494,224,666
--------------- --------------- ---------------
Net Assets $ 63,228,438 $ 310,933,670 $ 502,854,771
=============== =============== ===============
Net asset value per share of Common Stock $ 13.96 $ 14.60 $ 14.63
=============== =============== ===============
Market price $ 13.66 $ 13.25 $ 13.16
=============== =============== ===============
* Identified cost of unaffiliated securities $ 104,141,175 $ 512,152,533 $ 808,170,107
=============== =============== ===============
** Identified cost of affiliated securities $ 651,278 $ 7,844,812 $ 49,050
=============== =============== ===============
*** Preferred Stock authorized, issued and outstanding:
Series A Shares, par value $.10 per share 518 2,400 1,800
=============== =============== ===============
Series B Shares, par value $.10 per share 694 2,400 1,800
=============== =============== ===============
Series C Shares, par value $.10 per share 400 800 1,600
=============== =============== ===============
Series D Shares, par value $.10 per share -- 1,400 2,000
=============== =============== ===============
Series E Shares, par value $.10 per share -- -- 2,000
=============== =============== ===============
Series F Shares, par value $.10 per share -- -- 1,800
=============== =============== ===============
++ Common Stock issued and outstanding 4,529,591 21,295,255 34,361,200
=============== =============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Net Assets (concluded)
BlackRock BlackRock
BlackRock MuniYield MuniYield New
MuniYield Michigan Insured York Insured
As of October 31, 2007 Florida Fund Fund II, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 322,544,469 $ 282,573,854 $ 922,120,437
Investments in affiliated securities, at value** 6,077,881 3,885,815 5,295,776
Cash -- 67,650 29,614
Receivable for securities sold 100,000 -- 525,000
Interest receivable 4,043,927 5,111,812 14,640,663
Variation margin receivable -- -- 250,000
Prepaid expenses 4,120 1,641 3,138
--------------- --------------- ---------------
Total assets 332,770,397 291,640,772 942,864,628
--------------- --------------- ---------------
Liabilities
Trust certificates 19,547,500 20,996,125 84,995,000
Unrealized depreciation on forward interest rate swaps 152,476 -- --
Bank overdraft 41,781 -- --
Payable for securities purchased 4,720,220 -- --
Interest expense payable 228,430 182,439 1,044,533
Dividends payable to Common Stock shareholders/Common Shareholders 786,365 675,904 2,130,082
Payable to investment adviser 127,070 113,557 362,802
Payable to other affiliates 1,784 1,560 5,395
Accrued expenses 88,612 91,164 185,962
--------------- --------------- ---------------
Total liabilities 25,694,238 22,060,749 88,723,774
--------------- --------------- ---------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value of AMPS+++ at $25,000
per share liquidation preference*** 110,062,222 99,020,643 304,230,832
--------------- --------------- ---------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 197,013,937 $ 170,559,380 $ 549,910,022
=============== =============== ===============
Net Assets Consist of
Undistributed (accumulated distributions in excess of) investment
income--net $ 975,376 $ 906,118 $ (51,182)
Accumulated realized capital losses--net (9,950,926) (5,923,487) (33,784,465)
Unrealized appreciation--net 10,103,686 10,205,066 22,733,014
--------------- --------------- ---------------
Total accumulated earnings (losses)--net 1,128,136 5,187,697 (11,102,633)
Common Stock/Shares, par value $.10 per share++ 1,355,802 1,206,972 3,944,596
Paid-in capital in excess of par 194,529,999 164,164,711 557,068,059
--------------- --------------- ---------------
Net Assets $ 197,013,937 $ 170,559,380 $ 549,910,022
=============== =============== ===============
Net asset value per share of Common Stock/Shares $ 14.53 $ 14.13 $ 13.94
=============== =============== ===============
Market price $ 12.86 $ 12.61 $ 12.80
=============== =============== ===============
* Identified cost of unaffiliated securities $ 312,288,307 $ 272,368,788 $ 899,693,513
=============== =============== ===============
** Identified cost of affiliated securities $ 6,077,881 $ 3,885,815 $ 5,295,776
=============== =============== ===============
*** Preferred Stock authorized, issued and outstanding:
Series A Shares, par value $.05 per share 2,200 2,200 1,700
=============== =============== ===============
Series B Shares, par value $.05 per share 1,600 -- 1,700
=============== =============== ===============
Series B Shares, par value $.10 per share -- 1,360 --
=============== =============== ===============
Series C Shares, par value $.05 per share 600 -- 2,800
=============== =============== ===============
Series C Shares, par value $.10 per share -- 400 --
=============== =============== ===============
Series D Shares, par value $.05 per share -- -- 1,960
=============== =============== ===============
Series E Shares, par value $.05 per share -- -- 2,200
=============== =============== ===============
Series F Shares, par value $.05 per share -- -- 1,800
=============== =============== ===============
++ Common Stock issued and outstanding 13,558,024 12,069,721 39,445,962
=============== =============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Operations
BlackRock
BlackRock BlackRock MuniYield
MuniYield MuniYield California
Arizona California Insured
For the Year Ended October 31, 2007 Fund, Inc. Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 5,372,019 $ 25,098,876 $ 39,331,087
Dividends from affiliates 32,669 351,958 124,571
--------------- --------------- ---------------
Total income 5,404,688 25,450,834 39,455,658
--------------- --------------- ---------------
Expenses
Investment advisory fees 523,125 2,456,767 3,922,898
Interest expense and fees 244,785 2,197,543 2,542,583
Commission fees 102,236 443,224 698,626
Accounting services 65,409 162,793 222,041
Transfer agent fees 46,315 68,407 86,962
Professional fees 75,364 83,693 96,071
Printing and shareholder reports 6,422 33,031 51,212
Listing fees 1,079 9,436 12,046
Custodian fees 9,771 26,014 41,459
Pricing fees 9,529 18,297 25,298
Directors'/Trustees' fees and expenses 13,956 23,917 31,467
Other 35,888 67,643 69,149
--------------- --------------- ---------------
Total expenses before reimbursement 1,133,879 5,590,765 7,799,812
Reimbursement of expenses (5,212) (45,449) (15,889)
--------------- --------------- ---------------
Total expenses after reimbursement 1,128,667 5,545,316 7,783,923
--------------- --------------- ---------------
Investment income--net 4,276,021 19,905,518 31,671,735
--------------- --------------- ---------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss):
Investments 857,597 347,077 (539,776)
Future contracts and/or forward interest rate swaps--net (44,433) -- (151,448)
--------------- --------------- ---------------
Total realized gain (loss)--net 813,164 347,077 (691,224)
Change in unrealized appreciation/depreciation on:
Investments--net (2,879,937) (10,806,382) (14,047,467)
Future contracts and/or forward interest rate swaps--net 22,065 -- --
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation--net (2,857,872) (10,806,382) (14,047,467)
--------------- --------------- ---------------
Total realized and unrealized gain (loss)--net (2,044,708) (10,459,305) (14,738,691)
--------------- --------------- ---------------
Dividends and Distributions to Preferred Stock Shareholders
Dividends and distributions to Preferred Stock shareholders from:
Investment income--net (1,310,529) (6,115,916) (9,517,264)
Realized gain--net (102,456) -- --
--------------- --------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (1,412,985) (6,115,916) (9,517,264)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 818,328 $ 3,330,297 $ 7,415,780
=============== =============== ===============
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Operations (concluded)
BlackRock BlackRock
BlackRock MuniYield MuniYield New
MuniYield Michigan Insured York Insured
For the Year Ended October 31, 2007 Florida Fund Fund II, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 16,269,310 $ 14,533,901 $ 42,243,736
Dividends from affiliates 129,498 71,515 90,593
--------------- --------------- ---------------
Total income 16,398,808 14,605,416 42,334,329
--------------- --------------- ---------------
Expenses
Investment advisory fees 1,552,619 1,358,693 4,306,763
Interest expense and fees 715,979 933,860 3,308,124
Commission fees 279,818 252,851 773,082
Accounting services 118,326 108,277 252,474
Transfer agent fees 60,441 58,198 108,905
Professional fees 82,833 77,734 101,931
Printing and shareholder reports 21,655 19,152 61,463
Listing fees 9,436 9,479 13,819
Custodian fees 18,672 16,046 43,553
Pricing fees 17,008 16,829 30,603
Directors'/Trustees' fees and expenses 19,267 18,258 33,499
Other 51,430 46,579 83,896
--------------- --------------- ---------------
Total expenses before reimbursement 2,947,484 2,915,956 9,118,112
Reimbursement of expenses (21,161) (11,761) (11,291)
--------------- --------------- ---------------
Total expenses after reimbursement 2,926,323 2,904,195 9,106,821
--------------- --------------- ---------------
Investment income--net 13,472,485 11,701,221 33,227,508
--------------- --------------- ---------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss):
Investments 614,604 1,293,712 2,402,513
Future contracts and/or forward interest rate swaps--net (248,611) -- (754,681)
--------------- --------------- ---------------
Total realized gain (loss)--net 365,993 1,293,712 1,647,832
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (8,425,318) (6,941,533) (17,316,829)
Future contracts and/or forward interest rate swaps--net 278,799 -- 656,387
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation--net (8,146,519) (6,941,533) (16,660,442)
--------------- --------------- ---------------
Total realized and unrealized gain (loss)--net (7,780,526) (5,647,821) (15,012,610)
--------------- --------------- ---------------
Dividends to Preferred Stock Shareholders/Preferred Shareholders
Investment income--net (4,025,743) (3,550,430) (10,460,763)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 1,666,216 $ 2,502,970 $ 7,754,135
=============== =============== ===============
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Changes in Net Assets
BlackRock MuniYield BlackRock MuniYield
Arizona Fund, Inc. California Fund, Inc.
For the Year Ended October 31, For the Year Ended October 31,
Increase (Decrease) in Net Assets: 2007 2006 2007 2006
Operations
Investment income--net $ 4,276,021 $ 4,436,717 $ 19,905,518 $ 20,510,282
Realized gain--net 813,164 426,255 347,077 3,468,346
Change in unrealized appreciation--net (2,857,872) 1,122,350 (10,806,382) 4,191,570
Dividends and distributions to Preferred Stock shareholders (1,412,985) (1,259,966) (6,115,916) (5,371,492)
------------------------------ ------------------------------
Net increase in net assets resulting from operations 818,328 4,725,356 3,330,297 22,798,706
------------------------------ ------------------------------
Dividends and Distributions to Common Stock Shareholders
Investment income--net (3,117,045) (3,599,489) (14,097,459) (14,821,497)
Realized gain--net (285,146) (523,554) -- --
------------------------------ ------------------------------
Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders (3,402,191) (4,123,043) (14,097,459) (14,821,497)
------------------------------ ------------------------------
Stock Transactions
Value of shares issued to Common Stock shareholders in
reinvestment of dividends 201,509 335,820 -- --
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- 42,343 -- 15,461
------------------------------ ------------------------------
Net increase in net assets derived from stock/share transactions 201,509 378,163 -- 15,461
------------------------------ ------------------------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to
Common Stock (2,382,354) 980,476 (10,767,162) 7,992,670
Beginning of year 65,610,792 64,630,316 321,700,832 313,708,162
------------------------------ ------------------------------
End of year* $ 63,228,438 $ 65,610,792 $ 310,933,670 $ 321,700,832
============================== ==============================
* Undistributed investment income--net $ 311,568 $ 463,121 $ 1,349,213 $ 1,657,437
============================== ==============================
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Changes in Net Assets (continued)
BlackRock MuniYield BlackRock MuniYield
California Insured Fund, Inc. Florida Fund
For the Year Ended October 31, For the Year Ended October 31,
Increase (Decrease) in Net Assets: 2007 2006 2007 2006
Operations
Investment income--net $ 31,671,735 $ 32,879,584 $ 13,472,485 $ 13,366,198
Realized gain (loss)--net (691,224) 4,037,090 365,993 1,571,029
Change in unrealized appreciation/depreciation--net (14,047,467) 8,293,148 (8,146,519) 2,303,608
Dividends to Preferred Stock shareholders/Preferred Shareholders (9,517,264) (8,252,857) (4,025,743) (3,537,371)
------------------------------ ------------------------------
Net increase in net assets resulting from operations 7,415,780 36,956,965 1,666,216 13,703,464
------------------------------ ------------------------------
Dividends to Common Stock Shareholders/Common Shareholders
Investment income--net (23,228,171) (27,351,515) (9,517,733) (10,968,155)
------------------------------ ------------------------------
Net decrease in net assets resulting from dividends to
Common Stock shareholders/Common Shareholders (23,228,171) (27,351,515) (9,517,733) (10,968,155)
------------------------------ ------------------------------
Common Stock/Share Transactions
Value of shares issued to Common Shareholders in
reinvestment of dividends -- -- -- 91,289
Offering and underwriting costs resulting from the
issuance of Preferred Stock/Shares -- (4,270) -- (3,184)
------------------------------ ------------------------------
Net increase (decrease) in net assets derived from
stock/share transactions -- (4,270) -- 88,105
------------------------------ ------------------------------
Net Assets Applicable to Common Stock/Shares
Total increase (decrease) in net assets applicable to
Common Stock/Shares (15,812,391) 9,601,180 (7,851,517) 2,823,414
Beginning of year 518,667,162 509,065,982 204,865,454 202,042,040
------------------------------ ------------------------------
End of year* $ 502,854,771 $ 518,667,162 $ 197,013,937 $ 204,865,454
============================== ==============================
* Undistributed investment income--net $ 1,243,580 $ 2,317,280 $ 975,376 $ 1,046,367
============================== ==============================
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Changes in Net Assets (concluded)
BlackRock MuniYield BlackRock MuniYield
Michigan Insured Fund II, Inc. New York Insured Fund, Inc
For the Year Ended October 31, For the Year Ended October 31,
Increase (Decrease) in Net Assets: 2007 2006 2007 2006
Operations
Investment income--net $ 11,701,221 $ 11,701,357 $ 33,227,508 $ 36,304,822
Realized gain (loss)--net 1,293,712 488,405 1,647,832 (243,082)
Change in unrealized appreciation/depreciation--net (6,941,533) 956,523 (16,660,442) 8,987,101
Dividends to Preferred Stock shareholders (3,550,430) (3,095,027) (10,460,763) (9,387,734)
------------------------------ ------------------------------
Net increase in net assets resulting from operations 2,502,970 10,051,258 7,754,135 35,661,107
------------------------------ ------------------------------
Dividends to Common Stock Shareholders
Investment income--net (8,159,131) (9,351,799) (25,797,659) (30,176,161)
------------------------------ ------------------------------
Net decrease in net assets resulting from dividends to
Common Stock shareholders (8,159,131) (9,351,799) (25,797,659) (30,176,161)
------------------------------ ------------------------------
Stock Transactions
Value of shares issued to Common Stock shareholders in
reinvestment of dividends -- 227,419 -- --
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- 24,274 -- (5,720)
------------------------------ ------------------------------
Net increase (decrease) in net assets derived from stock
transactions -- 251,693 -- (5,720)
------------------------------ ------------------------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to
Common Stock (5,656,161) 951,152 (18,043,524) 5,479,226
Beginning of year 176,215,541 175,264,389 567,953,546 562,474,320
------------------------------ ------------------------------
End of year* $ 170,559,380 $ 176,215,541 $ 549,910,022 $ 567,953,546
============================== ==============================
* Undistributed (accumulated distributions in excess of)
investment income--net $ 906,118 $ 914,458 $ (51,182) $ 2,979,732
============================== ==============================
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Arizona Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 14.53 $ 14.39 $ 15.04 $ 14.64 $ 14.53
---------- ---------- ---------- ---------- ----------
Investment income--net++ .95 .98 .97 .98 1.00
Realized and unrealized gain (loss)--net (.46) .36 (.49) .40 .05
Less dividends and distributions to Preferred Stock shareholders:
Investment income--net (.29) (.26) (.14) (.06) (.06)
Realized gain--net (.02) (.02) --++++ -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations .18 1.06 .34 1.32 .99
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.69) (.80) (.92) (.92) (.88)
Realized gain--net (.06) (.12) (.02) -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock shareholders (.75) (.92) (.94) (.92) (.88)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- --*** (.05) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 13.96 $ 14.53 $ 14.39 $ 15.04 $ 14.64
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.66 $ 14.79 $ 16.03 $ 15.10 $ 14.13
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 1.29% 7.47% 1.91% 9.40% 7.19%
========== ========== ========== ========== ==========
Based on market price per share (2.63%) (1.80%) 13.07% 13.80% 13.45%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees** 1.37% 1.33% 1.20% 1.19% 1.18%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement** 1.75% 1.70% 1.51% 1.39% 1.37%
========== ========== ========== ========== ==========
Total expenses** 1.76% 1.71% 1.52% 1.40% 1.38%
========== ========== ========== ========== ==========
Total investment income--net** 6.65% 6.90% 6.54% 6.65% 6.79%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 2.04% 1.83% .91% .42% .42%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 4.61% 5.07% 5.63% 6.23% 6.37%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 63,228 $ 65,611 $ 64,630 $ 67,217 $ 65,234
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 40,300 $ 40,300 $ 40,300 $ 30,300 $ 30,300
========== ========== ========== ========== ==========
Portfolio turnover 31% 31% 28% 21% 24%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,569 $ 2,628 $ 2,604 $ 3,218 $ 3,153
========== ========== ========== ========== ==========
* Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
*** Amount is less than $.01 per share.
++ Based on average shares outstanding.
++++ Amount is less than $(.01) per share.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield California Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.11 $ 14.73 $ 15.27 $ 15.17 $ 15.14
---------- ---------- ---------- ---------- ----------
Investment income--net* .93 .96 .93 1.02 1.06
Realized and unrealized gain (loss)--net (.49) .37 (.46) .12 .04
Less dividends and distributions to Preferred Stock shareholders:
Investment income--net (.29) (.25) (.13) (.07) (.10)
Realized gain--net -- -- -- -- --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .15 1.08 .34 1.07 1.00
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.66) (.70) (.86) (.97) (.97)
Realized gain--net -- -- -- -- --++
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock shareholders (.66) (.70) (.86) (.97) (.97)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- --++++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 14.60 $ 15.11 $ 14.73 $ 15.27 $ 15.17
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.25 $ 14.00 $ 13.37 $ 14.43 $ 14.15
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.36% 8.03% 2.59% 7.74% 7.14%
========== ========== ========== ========== ==========
Based on market price per share (.72%) 10.28% (1.46%) 9.16% 4.64%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees*** 1.06% 1.06% .98% .96% .95%
========== ========== ========== ========== ==========
Expenses, net of reimbursement*** 1.75% 1.51% 1.13% 1.12% 1.16%
========== ========== ========== ========== ==========
Total expenses*** 1.77% 1.52% 1.13% 1.12% 1.17%
========== ========== ========== ========== ==========
Total investment income--net*** 6.29% 6.51% 6.16% 6.79% 6.93%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.93% 1.70% 0.84% 0.44% 0.63%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 4.36% 4.81% 5.32% 6.35% 6.30%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 310,934 $ 321,701 $ 313,708 $ 325,204 $ 323,155
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 175,000 $ 175,000 $ 175,000 $ 140,000 $ 140,000
========== ========== ========== ========== ==========
Portfolio turnover 41% 39% 53% 29% 18%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,777 $ 2,838 $ 2,793 $ 3,323 $ 3,308
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield California Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.09 $ 14.82 $ 15.23 $ 15.10 $ 15.26
---------- ---------- ---------- ---------- ----------
Investment income--net++++ .92 .96 .95 .94 .95
Realized and unrealized gain (loss)--net (.42) .35 (.33) .13 (.18)
Less dividends to Preferred Stock shareholders from
investment income--net (.28) (.24) (.13) (.06) (.06)
---------- ---------- ---------- ---------- ----------
Total from investment operations .22 1.07 .49 1.01 .71
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from investment
income--net (.68) (.80) (.88) (.88) (.87)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- --++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the issuance of
Preferred Stock -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 14.63 $ 15.09 $ 14.82 $ 15.23 $ 15.10
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.16 $ 14.64 $ 14.16 $ 13.73 $ 13.82
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 1.76% 7.57% 3.55% 7.54% 5.29%
========== ========== ========== ========== ==========
Based on market price per share (5.65%) 9.22% 9.75% 5.93% 7.50%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees** 1.03% 1.03% .96% .95% .94%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement** 1.53% 1.59% 1.27% 1.08% 1.08%
========== ========== ========== ========== ==========
Total expenses** 1.53% 1.60% 1.27% 1.08% 1.08%
========== ========== ========== ========== ==========
Total investment income--net** 6.22% 6.46% 6.29% 6.29% 6.20%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.87% 1.62% .84% .43% .37%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 4.35% 4.84% 5.45% 5.86% 5.83%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 502,855 $ 518,667 $ 509,066 $ 523,206 $ 518,786
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 275,000 $ 275,000 $ 275,000 $ 230,000 $ 230,000
========== ========== ========== ========== ==========
Portfolio turnover 25% 27% 39% 63% 47%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,829 $ 2,886 $ 2,851 $ 3,275 $ 3,256
========== ========== ========== ========== ==========
* Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Based on average shares outstanding.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Florida Fund
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.11 $ 14.91 $ 15.27 $ 14.97 $ 14.97
---------- ---------- ---------- ---------- ----------
Investment income--net++++ .99 .99 .98 1.00 1.06
Realized and unrealized gain (loss)--net (.57) .28 (.26) .29 (.07)
Less dividends to Preferred Shareholders from investment
income--net (.30) (.26) (.14) (.07) (.07)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.12 1.01 .58 1.22 .92
---------- ---------- ---------- ---------- ----------
Less dividends to Common Shareholders from investment income--net (.70) (.81) (.92) (.92) (.92)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Shares -- --++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 14.53 $ 15.11 $ 14.91 $ 15.27 $ 14.97
========== ========== ========== ========== ==========
Market price per share, end of year $ 12.86 $ 14.35 $ 14.93 $ 14.28 $ 13.80
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 1.21% 7.24% 3.98% 8.99% 6.76%
========== ========== ========== ========== ==========
Based on market price per share (5.68%) 1.71% 11.34% 10.57% 10.44%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Shares
Total expenses, net of reimbursement and excluding interest
expense and fees** 1.10% 1.09% 1.05% 1.03% 1.04%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement** 1.46% 1.42% 1.25% 1.18% 1.18%
========== ========== ========== ========== ==========
Total expenses** 1.47% 1.44% 1.25% 1.19% 1.19%
========== ========== ========== ========== ==========
Total investment income--net** 6.72% 6.63% 6.46% 6.67% 7.01%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 2.01% 1.75% .95% .48% .45%
========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 4.71% 4.88% 5.51% 6.19% 6.56%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Shares, end of year
(in thousands) $ 197,014 $ 204,865 $ 202,042 $ 206,895 $ 202,890
========== ========== ========== ========== ==========
Preferred Shares outstanding at liquidation preference,
end of year (in thousands) $ 110,000 $ 110,000 $ 110,000 $ 95,000 $ 95,000
========== ========== ========== ========== ==========
Portfolio turnover 25% 46% 42% 33% 35%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,791 $ 2,862 $ 2,837 $ 3,178 $ 3,136
========== ========== ========== ========== ==========
* Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
** Do not reflect the effect of dividends to Preferred Shareholders.
++ Amount is less than $(.01) per share.
++++ Based on average shares outstanding.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Michigan Insured Fund II, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 14.60 $ 14.54 $ 15.21 $ 15.21 $ 14.91
---------- ---------- ---------- ---------- ----------
Investment income--net+++ .97 .97 .99 1.00 1.02
Realized and unrealized gain (loss)--net (.47) .13 (.58) --++++ .24
Less dividends to Preferred Stock shareholders from
investment income (.29) (.26) (.15) (.07) (.07)
---------- ---------- ---------- ---------- ----------
Total from investment operations .21 .84 .26 .93 1.19
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from investment income (.68) (.78) (.91) (.93) (.89)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- --++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 14.13 $ 14.60 $ 14.54 $ 15.21 $ 15.21
========== ========== ========== ========== ==========
Market price per share, end of year $ 12.61 $ 13.97 $ 14.41 $ 14.54 $ 13.75
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 1.78% 6.09% 1.73% 6.78% 8.82%
========== ========== ========== ========== ==========
Based on market price per share (5.07%) 2.42% 5.47% 12.91% 9.06%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees** 1.14% 1.13% 1.07% 1.05% 1.01%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement** 1.68% 1.64% 1.46% 1.26% 1.20%
========== ========== ========== ========== ==========
Total expenses** 1.69% 1.65% 1.47% 1.28% 1.22%
========== ========== ========== ========== ==========
Total investment income--net** 6.77% 6.72% 6.57% 6.61% 6.73%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 2.05% 1.78% .97% .47% .47%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 4.72% 4.94% 5.60% 6.14% 6.26%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 170,559 $ 176,216 $ 175,264 $ 183,224 $ 183,237
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 99,000 $ 99,000 $ 99,000 $ 89,000 $ 89,000
========== ========== ========== ========== ==========
Portfolio turnover 10% 14% 19% 35% 27%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,723 $ 2,780 $ 2,770 $ 3,059 $ 3,059
========== ========== ========== ========== ==========
* Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $.01 per share.
++++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield New York Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 14.40 $ 14.26 $ 14.81 $ 14.81 $ 14.83
---------- ---------- ---------- ---------- ----------
Investment income--net++++ .84 .92 .94 .91 .97
Realized and unrealized gain (loss)--net (.38) .23 (.50) (.01) (.09)
Less dividends and distributions to Preferred Stock shareholders:
Investment income--net (.27) (.24) (.13) (.06) (.07)
Realized gain--net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations .19 .91 .31 .84 .81
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from investment
income--net (.65) (.77) (.84) (.84) (.83)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- --++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 13.94 $ 14.40 $ 14.26 $ 14.81 $ 14.81
========== ========== ========== ========== ==========
Market price per share, end of year $ 12.80 $ 14.10 $ 13.17 $ 13.20 $ 13.25
========== ========== ========== ========== ==========
Total Investment Return*
Based on net asset value per share 1.66% 6.71% 2.53% 6.53% 6.19%
========== ========== ========== ========== ==========
Based on market price per share (4.67%) 13.13% 6.24% 6.13% 5.45%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees** 1.04% 1.03% .96% .94% .94%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement** 1.63% 1.56% 1.31% 1.13% 1.15%
========== ========== ========== ========== ==========
Total expenses** 1.64% 1.56% 1.31% 1.13% 1.16%
========== ========== ========== ========== ==========
Total investment income--net** 5.96% 6.50% 6.37% 6.23% 6.49%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.88% 1.68% .87% .42% .50%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 4.08% 4.82% 5.50% 5.81% 5.99%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 549,910 $ 567,954 $ 562,474 $ 584,248 $ 584,025
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 304,000 $ 304,000 $ 304,000 $ 259,000 $ 259,000
========== ========== ========== ========== ==========
Portfolio turnover 25% 43% 35% 18% 45%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,809 $ 2,868 $ 2,850 $ 3,256 $ 3,255
========== ========== ========== ========== ==========
* Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Based on average shares outstanding.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund,
Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield
Florida Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock
MuniYield New York Insured Fund, Inc. (the "Funds" or individually as the
"Fund") are registered under the Investment Company Act of 1940, as amended,
as non-diversified, closed-end management investment companies. The Funds'
financial statements are prepared in conformity with U.S. generally accepted
accounting principles, which may require the use of management accruals and
estimates. Actual results may differ from these estimates. The Funds determine,
and make available for publication, the net asset values of their Common Stock/
Shares on a daily basis. Common Stock shares and Common Shares are listed on
the New York Stock Exchange under the symbol MYC for BlackRock MuniYield
California Fund, Inc., MCA for BlackRock MuniYield California Insured Fund,
Inc., MYF for BlackRock MuniYield Florida Fund, MYM for BlackRock MuniYield
Michigan Insured Fund II, Inc. and MYN for BlackRock MuniYield New York Insured
Fund, Inc. Common Stock is listed on the American Stock Exchange under the
symbol MZA for BlackRock MuniYield Arizona Fund, Inc. The following is a
summary of significant accounting policies followed by the Funds.
(a) Valuation of Investments--Municipal bonds are traded primarily in the over-
the-counter ("OTC") markets and are valued at the last available bid price in
the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of each of the Funds under the general
direction of the respective Board of Directors or Trustees. Such valuations
and procedures are reviewed periodically by each Fund's Board of Directors or
Trustees. Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of such
exchanges. Effective September 4, 2007, exchange-traded options are valued at
the mean between the last bid and ask prices at the close of the options
market in which the options trade and previously were valued at the last sales
price as of the close of options trading on applicable exchanges. In the case
of options traded in the OTC market, valuation is the last asked price
(options written) or the last bid price (options purchased). Swap agreements
are valued by quoted fair values received daily by the Funds' pricing service.
Investments in open-end investment companies are valued at their net asset
value each business day. Securities and other assets for which market
quotations are not readily available are valued at fair value as determined in
good faith by or under the direction of each Fund's Board of Directors or
Trustees. Such valuations and procedures will be reviewed periodically by each
Fund's Board of Directors or Trustees.
(b) Derivative financial instruments--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, its exposure to interest rate movements and movements in
the securities markets. Losses may arise due to changes in the value of the
contract due to an unfavorable change in the price of the underlying security
or if the counterparty does not perform under the contract. The counterparty
for certain instruments may pledge cash or securities as collateral.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Financial
futures contracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits, and maintains as collateral, such initial margin
as required by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such receipts
or payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
* Options--Each Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
* Forward interest rate swaps--Each Fund may enter into forward interest rate
swaps. In a forward interest rate swap, the Fund and the counterparty agree to
make periodic net payments on a specified notional contract amount, commencing
on a specified future effective date, unless terminated earlier. When the
agreement is closed, the Fund records a realized gain or loss in an amount
equal to the value of the agreement.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
* Swaps--Each Fund may enter into swap agreements, which are OTC contracts in
which each Fund and a counterparty agree to make periodic net payments on a
specified notional amount. The net payments can be made for a set period of
time or may be triggered by a predetermined credit event. The net periodic
payments may be based on a fixed or variable interest rate; the change in
market value of a specified security, basket of securities or index; or the
return generated by a security. These periodic payments received or made by
each Fund are recorded in the accompanying Statements of Operations as
realized gains or losses, respectively. Gains or losses are also realized upon
termination of the swap agreements. Swaps are marked-to-market daily and
changes in value are recorded as unrealized appreciation (depreciation). Risks
include changes in the returns of the underlying instruments, failure of the
counterparties to perform under the contracts' terms and the possible lack of
liquidity with respect to the swap agreements.
(c) Municipal bonds held in trust--The Funds invest in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests: short-
term floating rate certificates, which are sold to third party investors, and
residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. Each Fund's transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the
municipal securities deposited into a TOB are presented in the Funds'
schedules of investments and the proceeds from the transactions are reported
as a liability for trust certificates. Similarly, proceeds from residual
certificates issued to affiliates, if any, from the transaction are included
in the liability for trust certificates. Interest income from the underlying
security is recorded by the Funds on an accrual basis. Interest expense
incurred on the secured borrowing and other expenses related to remarketing,
administration and trustee services to a TOB are reported as expenses of a
Fund. The floating rate certificates have interest rates that generally reset
weekly and their holders have the option to tender certificates to the TOB for
redemption at par at each reset date. The residual interests held by the Funds
include the right of the Funds (1) to cause the holders of a proportional
share of floating rate certificates to tender their certificates at par, and
(2) to transfer a corresponding share of the municipal securities from the TOB
to the Funds. At October 31, 2007, the aggregate value of the underlying
municipal securities transferred to TOBs and the liability for trust
certificates were:
Underlying
Municipal
Liability for Range of Bonds
Trust Interest Transferred
Certificates Rates to TOBs
BlackRock MuniYield 3.687% -
Arizona Fund, Inc. $ 4,835,000 3.728% $ 10,452,264
Blackrock MuniYield 3.676% -
California Fund, Inc. $48,967,500 3.708% $101,416,713
BlackRock MuniYield
California Insured 3.676% -
Fund, Inc. $58,216,110 3.708% $119,617,158
BlackRock MuniYield 3.722% -
Florida Fund $19,547,500 3.763% $ 41,880,266
BlackRock MuniYield
Michigan Insured 3.658% -
Fund II, Inc. $20,996,125 3.758% $ 43,534,070
BlackRock MuniYield
New York Insured 3.631% -
Fund, Inc. $84,995,000 3.707% $180,725,191
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment,
but tend to outperform the market for fixed rate municipal bonds when interest
rates decline or remain relatively stable. Should short-term interest rates
rise, the Funds' investment in TOB Residuals likely will adversely affect the
Funds' investment income--net and distributions to shareholders. Fluctuations
in the market value of municipal securities deposited into the TOB may
adversely affect the Funds' net asset values per share.
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Income taxes--It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(e) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(f) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
(g) Offering costs--Direct expenses relating to the public offering of each
Fund's Preferred Stock/Shares were charged to Common Stock/Shares capital at
the time of issuance of the shares. Any adjustments to estimates of offering
costs were recorded to capital.
(h) Bank overdraft--BlackRock MuniYield Arizona Fund, Inc. recorded a bank
overdraft, which resulted from a failed trade. MuniYield Florida Fund, Inc.
recorded a bank overdraft, which resulted from management estimates of
available cash.
(i) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes--an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet
in connection with accounting for uncertainties in income tax positions taken
or expected to be taken by an entity, including mutual funds, before being
measured and recognized in the financial statements. Adoption of FIN 48 is
required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on each of the Fund's financial statements, if any, is
currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on each of the Fund's financial statements, if any, has not
been determined.
In addition, in February 2007, FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on each of the Fund's financial
statements, if any, has not been determined.
(j) Reclassification for BlackRock MuniYield California Fund, Inc.--U.S.
generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $367 has been reclassified
between undistributed net investment income and accumulated net realized
capital losses as a result of permanent differences attributable to the tax
classification of distributions received from a regulated investment company.
This reclassification has no effect on net assets or net asset values per
share.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of
BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC
Financial Services Group, Inc. are the principal owners of BlackRock, Inc. The
Manager is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, each Fund
pays a monthly fee at an annual rate of .50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock/Shares. The
Manager has agreed to reimburse its management fee by the amount of management
fees each Fund pays to the Manager indirectly through its investments
described below. The reimbursements for the year ended October 31, 2007 were
as follows:
Reimbursement
Investment by Manager
BlackRock MuniYield CMA Arizona
Arizona Fund, Inc. Municipal
Money Fund $ 5,212
BlackRock MuniYield CMA California
California Fund, Inc. Municipal Money
Fund $45,449
BlackRock MuniYield CMA California
California Insured Municipal Money
Fund, Inc. Fund $15,889
BlackRock MuniYield CMA Florida Money
Florida Fund Fund $21,161
BlackRock MuniYield CMA Michigan
Michigan Insured Municipal Money
Fund II, Inc. Fund $11,761
BlackRock MuniYield CMA New York
New York Insured Municipal Money
Fund, Inc. Fund $11,291
In addition, the Manager has entered into sub-advisory agreements with
BlackRock Investment Management, LLC, an affiliate of the Manager, with
respect to each Fund, under which the Manager pays the sub-adviser for
services it provides, a monthly fee that is a percentage of the management
fee paid by each Fund to the Manager.
The Funds reimbursed the Manager for certain accounting services. The
reimbursements for the year ended October 31, 2007 were as follows:
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
Reimbursement
to the Manager
BlackRock MuniYield Arizona Fund, Inc. $ 1,954
BlackRock MuniYield California Fund, Inc. $ 9,162
BlackRock MuniYield California Insured Fund, Inc. $14,652
BlackRock MuniYield Florida Fund $ 5,795
BlackRock MuniYield Michigan Insured Fund II, Inc. $ 5,063
BlackRock MuniYield New York Insured Fund, Inc. $17,123
Certain officers and/or directors or trustees of the Funds are officers and/or
directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 2007 were as follows:
Total Total
Purchases Sales
BlackRock MuniYield Arizona
Fund, Inc. $ 34,927,314 $ 34,642,002
BlackRock MuniYield California
Fund, Inc. $240,004,391 $221,007,188
BlackRock MuniYield California Insured
Fund, Inc. $214,255,226 $227,304,078
BlackRock MuniYield Florida Fund $ 86,640,152 $ 80,206,728
BlackRock MuniYield Michigan
Insured Fund II, Inc. $ 29,164,960 $ 33,328,112
BlackRock MuniYield New York
Insured Fund, Inc. $243,038,011 $232,500,320
4. Stock/Share Transactions:
BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund,
Inc., BlackRock MuniYield California Insured Fund, Inc., BlackRock MuniYield
Michigan Insured Fund II, Inc. and BlackRock MuniYield New York Insured Fund,
Inc. are authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $.10 per share, except BlackRock MuniYield Michigan Insured
Fund II, Inc. Preferred Stock, Series A and all series of BlackRock MuniYield
New York Insured Fund, Inc. Preferred Stock, which have a par value of $.05
per share, and all of which were initially classified as Common Stock. The
respective Board of Directors is authorized, however, to reclassify any
unissued shares of stock without approval of holders of Common Stock.
BlackRock MuniYield Florida Fund is authorized to issue an unlimited number of
common shares of beneficial interest, including Preferred Shares, par value
$.05 per share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued shares of
beneficial interest without approval of holders of Common Shares.
Common Stock/Shares
BlackRock MuniYield Arizona Fund, Inc.
Shares issued and outstanding during the year ended October 31, 2007 and for
the year ended October 31, 2006 increased by 13,972 and 22,850, respectively,
as a result of dividend reinvestments.
BlackRock MuniYield California Fund, Inc.
Shares issued and outstanding during the years ended October 31, 2007 and
October 31, 2006 remained constant.
BlackRock MuniYield California Insured Fund, Inc.
Shares issued and outstanding during the years ended October 31, 2007 and
October 31, 2006 remained constant.
BlackRock MuniYield Florida Fund
Shares issued and outstanding during the year ended October 31, 2007 remained
constant. Shares issued and outstanding during the year ended October 31, 2006
increased by 6,144 as a result of dividend reinvestments.
BlackRock MuniYield Michigan Insured Fund II, Inc.
Shares issued and outstanding during the year ended October 31, 2007 remained
constant. Shares issued and outstanding during the year ended October 31, 2006
increased by 15,590 as a result of dividend reinvestments.
BlackRock MuniYield New York Insured Fund, Inc.
Shares issued and outstanding during the years ended October 31, 2007 and
October 31, 2006 remained constant.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Stock/Shares of the
Funds, with a liquidation preference of $25,000 per share plus accrued and
unpaid dividends that entitle their holders to receive cash dividends at an
annual rate that may vary for the successive dividend periods. The yields in
effect at October 31, 2007 were as follows:
BlackRock
BlackRock BlackRock MuniYield
MuniYield MuniYield California
Arizona California Insured
Fund, Inc. Fund, Inc. Fund, Inc.
Series A 3.30% 3.70% 2.84%
Series B 2.818% 3.50% 2.95%
Series C 3.50% 2.99% 3.40%
Series D -- 2.89% 3.60%
Series E -- -- 3.03%
Series F -- -- 2.91%
BlackRock BlackRock
MuniYield MuniYield
BlackRock Michigan New York
MuniYield Insured II Insured
Florida Fund Fund, Inc. Fund, Inc.
Series A 3.55% 3.54% 3.55%
Series B 3.55% 3.50% 2.89%
Series C 3.49% 3.50% 3.00%
Series D -- -- 3.30%
Series E -- -- 3.57%
Series F -- -- 3.15%
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
Shares issued and outstanding for each of the Funds during the years ended
October 31, 2007 and October 31, 2006 remained constant.
Each Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the year ended October 31, 2007, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill
Lynch, earned commissions as follows:
Commissions
BlackRock Arizona Fund, Inc. $ 55,729
BlackRock California Fund, Inc. $ 145,469
BlackRock California Insured Fund, Inc. $ 233,170
BlackRock MuniYield Florida Fund $ 146,733
BlackRock MuniYield Michigan Insured Fund II, Inc. $ 127,716
BlackRock MuniYield New York Insured Fund, Inc. $ 359,665
5. Distributions to Shareholders:
BlackRock MuniYield Arizona Fund, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.057000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 4,427,574 $ 4,774,990
Net long-term capital gain 387,602 608,019
--------------- ---------------
Total distributions $ 4,815,176 $ 5,383,009
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 390,633
Undistributed long-term capital gains - net 762,810
---------------
Total undistributed earnings - net 1,153,443
Capital loss carryforward --
Unrealized gains - net 1,853,700*
---------------
Total accumulated earnings - net $ 3,007,143
===============
* The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interest
in tender option bonds.
BlackRock MuniYield California Fund, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.055000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 20,213,375 $ 20,192,989
--------------- ---------------
Total distributions $ 20,213,375 $ 20,192,989
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 1,476,067
Undistributed long-term capital gains - net --
---------------
Total undistributed earnings - net 1,476,067
Capital loss carryforward (217,588)*
Unrealized gains - net 8,076,786**
---------------
Total accumulated earnings - net $ 9,335,265
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$217,588, all of which expires in 2011. This amount will be available to
offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on straddles, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and the difference between the book
and tax treatment of residual interest in tender option bonds.
BlackRock MuniYield California Insured Fund, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.056000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 32,745,435 $ 35,604,372
--------------- ---------------
Total distributions $ 32,745,435 $ 35,604,372
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 1,519,548
Undistributed long-term capital gains - net --
---------------
Total undistributed earnings - net 1,519,548
Capital loss carryforward (11,966,371)*
Unrealized gains - net 15,640,808**
---------------
Total accumulated earnings - net $ 5,193,985
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$11,966,371, of which $3,017,271 expires in 2008, $9,668 expires in 2009,
$4,901,089 expires in 2011, $2,675,948 expires in 2012 and $1,362,395
expires in 2015. This amount will be available to offset like amounts of
any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on straddles, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and the difference between the book
and tax treatment of residual interest in tender option bonds.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (concluded)
BlackRock MuniYield Florida Fund
The Fund paid a tax-exempt income dividend to holders of Common Shares in the
amount of $.058000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 13,543,476 $ 14,505,526
--------------- ---------------
Total distributions $ 13,543,476 $ 14,505,526
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 493,097
Undistributed long-term capital gains - net --
---------------
Total undistributed earnings - net 493,097
Capital loss carryforward (7,545,418)*
Unrealized gains - net 8,180,457**
---------------
Total accumulated earnings - net $ 1,128,136
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$7,545,418, of which $6,070,481 expires in 2008 and $1,474,937 expires
in 2012. This amount will be available to offset like amounts of any
future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interest
in tender option bonds.
BlackRock MuniYield Michigan Insured Fund II, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.056000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 11,709,561 $ 12,446,826
--------------- ---------------
Total distributions $ 11,709,561 $ 12,446,826
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 648,996
Undistributed long-term capital gains - net --
---------------
Total undistributed earnings - net 648,996
Capital loss carryforward (3,682,435)*
Unrealized gains - net 8,221,136**
---------------
Total accumulated earnings - net $ 5,187,697
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$3,682,435 of which $1,343,331 expires in 2008, $1,050,253 expires in
2010 and $1,288,851 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interest
in tender option bonds.
BlackRock MuniYield New York Insured Fund, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.054000 per share on December 3, 2007 to shareholders of record on
November 15, 2007.
The tax character of distributions paid during the fiscal years ended October
31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income $ 36,258,422 $ 39,563,895
--------------- ---------------
Total distributions $ 36,258,422 $ 39,563,895
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income - net $ 1,806,373
Undistributed long-term capital gains - net --
---------------
Total undistributed earnings - net 1,806,373
Capital loss carryforward (30,088,597)*
Unrealized gains - net 17,179,591**
---------------
Total accumulated losses - net $ (11,102,633)
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$30,088,597, of which $7,390,734 expires in 2008, $3,007,157 expires in
2010, $16,583,200 expires in 2012 and $3,107,506 expires in 2014. This
amount will be available to offset like amounts of any future taxable
gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities,
the realization for tax purposes of unrealized gains on certain futures
contracts, other book/tax temporary differences and the difference between
the book and tax treatment of residual interest in tender option bonds.
ANNUAL REPORT OCTOBER 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Boards of Directors or Trustees
of BlackRock MuniYield Arizona Fund, Inc., BlackRock
MuniYield California Fund, Inc., BlackRock MuniYield
California Insured Fund, Inc., BlackRock MuniYield Florida
Fund, BlackRock MuniYield Michigan Insured Fund II, Inc.
and BlackRock MuniYield New York Insured Fund, Inc.:
We have audited the accompanying statements of net assets, including the
schedules of investments, of BlackRock MuniYield Arizona Fund, Inc., BlackRock
MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund,
Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured
Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. (the
"Funds"), as of October 31, 2007, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended and the financial highlights for each of
the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of material
misstatement. The Funds are not required to have, nor were we engaged to
perform, audits of their internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Funds' internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of October 31, 2007 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the respective financial
position of BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield
California Fund, Inc., BlackRock MuniYield California Insured Fund, Inc.,
BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured Fund
II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. as of October 31,
2007, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and their
financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 24, 2007
ANNUAL REPORT OCTOBER 31, 2007
The Benefits and Risks of Leveraging
The Funds utilize leverage to seek to enhance the yield and net asset value of
their Common Stock/Shares. However, these objectives cannot be achieved in all
interest rate environments. To leverage, the Funds issue Preferred Stock/
Shares, which pay dividends at prevailing short-term interest rates, and
invest the proceeds in long-term municipal bonds. The interest earned on these
investments, net of dividends to Preferred Stock/Shares, is paid to Common
Stock Shareholders/Common Shareholders in the form of dividends, and the value
of these portfolio holdings is reflected in the per share net asset value of
the Funds' Common Stock/Shares. However, in order to benefit Common Stock
Shareholders/Common Shareholders, the yield curve must be positively sloped;
that is, short-term interest rates must be lower than long-term interest
rates. At the same time, a period of generally declining interest rates will
benefit Common Stock Shareholders/Common Shareholders. If either of these
conditions change, then the risks of leveraging will begin to outweigh the
benefits.
To illustrate these concepts, assume a fund's Common Stock/Shares
capitalization of $100 million and the issuance of Preferred Stock/Shares for
an additional $50 million, creating a total value of $150 million available
for investment in long-term municipal bonds. If prevailing short-term interest
rates are approximately 3% and long-term interest rates are approximately 6%,
the yield curve has a strongly positive slope. The fund pays dividends on the
$50 million of Preferred Stock/Shares based on the lower short-term interest
rates. At the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates.
In this case, the dividends paid to Preferred Stock Shareholders/Preferred
Shareholders are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock Shareholders/Common
Shareholders are the beneficiaries of the incremental yield. However, if
short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the Common Stock/
Shares will be reduced or eliminated completely. At the same time, the market
value of the fund's Common Stock/Shares (that is, its price as listed on the
New York Stock Exchange or the American Stock Exchange) may, as a result,
decline. Furthermore, if long-term interest rates rise, the Common Stocks'/
Shares' net asset value will reflect the full decline in the price of the
portfolio's investments, since the value of the fund's Preferred Stock/Shares
does not fluctuate. In addition to the decline in net asset value, the market
value of the fund's Common Stock/Shares may also decline.
As of October 31, 2007, BlackRock MuniYield Arizona Fund, Inc., BlackRock
MuniYield California Fund, Inc., BlackRock MuniYield California Insured Fund,
Inc., BlackRock MuniYield Florida Fund, BlackRock MuniYield Michigan Insured
Fund II, Inc. and BlackRock MuniYield New York Insured Fund, Inc. had leverage
amounts, due to Auction Market Preferred Stock/Shares, of 38.88%, 35.97%,
39.49%, 35.79%, 36.67% and 35.55% of total net assets, respectively, before
the deduction of Preferred Stock/Shares.
As a part of their investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase
when short-term interest rates decrease. Investments in inverse floaters may
be characterized as derivative securities and may subject the Funds to the
risks of reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of providing
investment leverage and, as a result, the market value of such securities will
generally be more volatile than that of fixed rate, tax-exempt securities. To
the extent the Funds invest in inverse floaters, the market value of each
Fund's portfolio and the net asset value of each Fund's shares may also be
more volatile than if the Funds did not invest in these securities. (See Note
1(c) to Financial Statements for details of municipal bonds held in trust).
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts
in which one party agrees to make periodic payments based on the change in
market value of a specified bond, basket of bonds, or index in return for
periodic payments based on a fixed or variable interest rate or the change in
market value of a different bond, basket of bonds or index. Swap agreements
may be used to obtain exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the
party with whom each Fund has entered into a swap will default on its
obligation to pay the Fund and the risk that the Fund will not be able to meet
its obligation to pay the other party to the agreement.
ANNUAL REPORT OCTOBER 31, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works--The Funds offer a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by each Fund are
automatically reinvested in additional shares of Common Stock or Shares of
each Fund. The Plan is administered on behalf of the shareholders by The Bank
of New York Mellon for BlackRock MuniYield Arizona Fund, Inc., BlackRock
MuniYield California Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock
MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York
Insured Fund, Inc. and Computer-share Trust Company, N.A. for BlackRock
MuniYield California Insured Fund, Inc. (individually, the "Plan Agent" or
together, the "Plan Agents"). Under the Plan, whenever the Funds declare a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock or Shares of each Fund. The Plan Agents will acquire the shares
for the participant's account either (i) through receipt of additional
unissued but authorized shares of each Fund ("newly issued shares") or (ii) by
purchase of outstanding shares of Common Stock or Shares on the open market on
the New York Stock Exchange or American Stock Exchange, as applicable or
elsewhere. If, on the dividend payment date, each Fund's net asset value per
share is equal to or less than the market price per share plus estimated
brokerage commissions (a condition often referred to as a "market premium"),
the Plan Agents will invest the dividend amount in newly issued shares. If the
Funds' net asset value per share is greater than the market price per share (a
condition often referred to as a "market discount"), the Plan Agents will
invest the dividend amount by purchasing on the open market additional shares.
If the Plan Agents are unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium during
the purchase period, the Plan Agents will invest any uninvested portion in
newly issued shares. The shares acquired are credited to each shareholder's
account. The amount credited is determined by dividing the dollar amount of
the dividend by either (i) when the shares are newly issued, the net asset
value per share on the date the shares are issued or (ii) when shares are
purchased in the open market, the average purchase price per share.
Participation in the Plan--Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock or Shares of the Funds unless the shareholder
specifically elects not to participate in the Plan. Shareholders who elect not
to participate will receive all dividend distributions in cash. Shareholders
who do not wish to participate in the Plan must advise their Plan Agent in
writing (at the address set forth below) that they elect not to participate in
the Plan. Participation in the Plan is completely voluntary and may be
terminated or resumed at any time without penalty by writing to the Plan
Agent.
Benefits of the Plan--The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds. The Plan
promotes a long-term strategy of investing at a lower cost. All shares
acquired pursuant to the Plan receive voting rights. In addition, if the
market price plus commissions of each Fund's shares is above the net asset
value, participants in the Plan will receive shares of the Funds for less than
they could otherwise purchase them and with a cash value greater than the
value of any cash distribution they would have received. However, there may
not be enough shares available in the market to make distributions in shares
at prices below the net asset value. Also, since each Fund does not redeem
shares, the price on resale may be more or less than the net asset value.
Plan Fees--There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agents' service fees for handling the reinvestment of
distributions are paid for by the Funds. However, brokerage commissions may be
incurred when the Funds purchase shares on the open market and shareholders
will pay a pro rata share of any such commissions.
Tax Implications--The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that
may be payable (or required to be withheld) on such dividends. Therefore,
income and capital gains may still be realized even though shareholders do not
receive cash. The value of shares acquired pursuant to the Plan will generally
be excluded from gross income to the extent that the cash amount reinvested
would be excluded from gross income. If, when the Funds' shares are trading at
a market premium, the Funds issue shares pursuant to the Plan that have a
greater fair market value than the amount of cash reinvested, it is possible
that all or a portion of the discount from the market value (which may not
exceed 5% of the fair market value of each Fund's shares) could be viewed as a
taxable distribution. If the discount is viewed as a taxable distribution, it
is also possible that the taxable character of this discount would be allocable
to all the shareholders, including shareholders who do not participate in the
Plan. Thus, shareholders who do not participate in the Plan might be required
to report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information--All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at The Bank
of New York Mellon, Church Street Station, P.O. Box 11258, New York, NY
10286-1258, Telephone: 800-432-8224 for BlackRock MuniYield Arizona Fund,
Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Florida
Fund, BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock
MuniYield New York Insured Fund, Inc. and Computershare Trust Company, N.A.,
P.O. Box 43010, Providence, RI 02940-3010, Telephone: 800-426-5523 for
BlackRock MuniYield California Insured Fund, Inc.
ANNUAL REPORT OCTOBER 31, 2007
Important Tax Information
All of the net investment income distributions paid by BlackRock MuniYield
Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock
MuniYield California Insured Fund, Inc., BlackRock MuniYield Florida Fund,
BlackRock MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New
York Insured Fund, Inc. during the taxable year ended October 31, 2007 qualify
as tax-exempt interest dividends for federal income tax purposes.
Additionally, the following table summarizes the taxable per share
distributions paid by BlackRock MuniYield Arizona Fund, Inc. during the year:
Payable Long-Term
Date Capital Gains
Common Stock Shareholders 12/28/2006 $.063115
Preferred Stock Shareholders:
Series A 11/30/2006 $23.78
12/07/2006 $28.15
12/14/2006 $ 9.47
Series B 11/28/2006 $27.35
12/05/2006 $28.38
12/12/2006 $ 7.53
Series C 12/04/2006 $28.15
12/11/2006 $25.22
12/18/2006 $13.50
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees as of October 31, 2007
Number of
Funds and
Portfolios in Other Public
Fund Complex Directorships
Position(s) Length of Overseen by Held by
Name, Address Held with Time Director or Director or
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Director or Trustee
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 120 Funds None
P.O. Box 9011 President 2007 Global Chief Investment Officer for Equities, 161 Portfolios
Princeton, NJ and Director Chairman of the BlackRock Retail Operating
08543-9011 or Trustee Committee, and member of the BlackRock Executive
1954 Committee since 2006; President of the funds
advised by Merrill Lynch Investment Managers, L.P.
("MLIM") and its affiliates ("MLIM/FAM-advised
funds") from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President of
MLIM and Fund Asset Management, L.P. ("FAM")
from 2001 to 2006; Co-Head (Americas Region)
thereof from 2000 to 2001 and Senior Vice President
from 1999 to 2001; President and Director of
Princeton Services, Inc. ("Princeton Services")
and President of Princeton Administrators, L.P.
("Princeton Administrators") from 2001 to 2006;
Chief Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain
other investment companies for which BlackRock acts as investment adviser.
Mr. Doll is an "interested person," as described in the Investment Company
Act, of the Fund based on his positions with BlackRock, Inc. and its
affiliates. Directors or Trustees serve until their resignation, removal
or death, or until December 31 of the year in which they turn 72. As Fund
President, Mr. Doll serves at the pleasure of the Boards of Directors
or Trustees.
Independent Directors or Trustees*
James H. Bodurtha** Director 1995 to Director, The China Business Group, Inc. since 37 Funds None
P.O. Box 9095 or Trustee 2007 1996 and Executive Vice President thereof from 57 Portfolios
Princeton, NJ 1996 to 2003; Chairman of the Board, Berkshire
08543-9095 Holding Corporation since 1980; Partner, Squire,
1944 Sanders & Dempsey (a law firm) from 1980 to 1993.
Kenneth A. Froot Director 2005 to Professor, Harvard University since 1992; 37 Funds None
P.O. Box 9095 or Trustee 2007 Professor, Massachusetts Institute of 57 Portfolios
Princeton, NJ Technology from 1986 to 1992.
08543-9095
1957
Joe Grills** Director 2002 to Member of the Committee of Investment of 37 Funds Kimco Realty
P.O. Box 9095 or Trustee 2007 Employee Benefit Assets of the Association of 57 Portfolios Corporation
Princeton, NJ Financial Professionals ("CIEBA") since 1986;
08543-9095 Member of CIEBA's Executive Committee since 1988
1935 and its Chairman from 1991 to 1992; Assistant
Treasurer of International Business Machines
Corporation ("IBM") and Chief Investment Officer
of IBM Retirement Funds from 1986 to 1993; Member
of the Investment Advisory Committee of the State
of New York Common Retirement Fund from 1989 to 2006;
Member of the Investment Advisory Committee of the
Howard Hughes Medical Institute from 1997 to 2000;
Director, Duke University Management Company from
1992 to 2004, Vice Chairman thereof from 1998 to 2004,
and Director Emeritus thereof since 2004; Director,
LaSalle Street Fund from 1995 to 2001; Director,
Kimco Realty Corporation since 1997; Member of the
Investment Advisory Committee of the Virginia Retirement
System since 1998, Vice Chairman thereof from 2002 to
2005, and Chairman thereof since 2005; Director,
Montpelier Foundation since 1998, its Vice Chairman from
2000 to 2006, and Chairman, thereof, since 2006; Member
of the Investment Committee of the Woodberry Forest School
since 2000; Member of the Investment Committee of the
National Trust for Historic Preservation since 2000.
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees (continued)
Number of
Funds and
Portfolios in Other Public
Fund Complex Directorships
Position(s) Length of Overseen by Held by
Name, Address Held with Time Director or Director or
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Directors or Trustees*(concluded)
Herbert I. London Director 1992 Professor Emeritus, New York University since 37 Funds AIMS Worldwide,
P.O. Box 9095 or Trustee (MYC, 2005; John M. Olin Professor of Humanities, 57 Portfolios Inc.
Princeton, NJ MCA, New York University from 1993 to 2005; and
08543-9095 MYF, Professor thereof from 1980 to 2005; President,
1939 MYM & Hudson Institute since 1997 and Trustee thereof
MYN) since 1980; Dean, Gallatin Division of New York
and 1993 University from 1976 to 1993; Distinguished Fellow,
(MZA) Herman Kahn Chair, Hudson Institute from 1984 to
to 2007 1985; Chairman of the Board of Directors of Vigilant
Research, Inc. since 2006; Member of the Board of
Directors for Grantham University since 2006;
Director of AIMS Worldwide, Inc., since 2006;
Director of Reflex Security since 2006; Director of
InnoCentive, Inc. since 2006; Director of Cerego, LLC
since 2005; Director, Damon Corp. from 1991 to 1995;
Overseer, Center for Naval Analyses from 1983 to 1993.
Roberta Cooper Ramo Director 2000 to Shareholder, Modrall, Sperling, Roehl, Harris & 37 Funds None
P.O. Box 9095 or Trustee 2007 Sisk, P.A. since 1993; President, American Bar 57 Portfolios
Princeton, NJ Association from 1995 to 1996 and Member of the
08543-9095 Board of Governors thereof from 1994 to 1997;
1939 Shareholder, Poole, Kelly and Ramo, Attorneys
at Law P.C. from 1977 to 1993; Director of ECMC
Group (service provider to students, schools and
lenders) since 2001; Director, United New Mexico
Bank (now Wells Fargo) from 1983 to 1988; Director,
First National Bank of New Mexico (now Wells Fargo)
from 1975 to 1976; Vice President, American Law
Institute from 2004 to 2007 and President elect
thereof since 2007.
Robert S. Salomon, Jr. Director 2002 to Principal of STI Management (investment adviser) 37 Funds None
P.O. Box 9095 or Trustee 2007 from 1994 to 2005; Chairman and CEO of Salomon 57 Portfolios
Princeton, NJ Brothers Asset Management Inc. from 1992 to 1995;
08543-9095 Chairman of Salomon Brothers Equity Mutual Funds
1936 from 1992 to 1995; regular columnist with Forbes
Magazine from 1992 to 2002; Director of Stock
Research and U.S. Equity Strategist at Salomon
Brothers Inc. from 1975 to 1991; Trustee,
Commonfund from 1980 to 2001.
* Directors or Trustees serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Co-Chairman of each Board of Directors or Trustees and Audit Committee.
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President 2007 Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P.
Princeton, NJ and and ("FAM") in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and
08543-9011 Treasurer 1999 to Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990
1960 2007 to 1997.
Karen Clark Chief 2007 Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
1965 to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange Commission,
from 1993 to 1998.
Howard Surloff Secretary 2007 Managing Director, of BlackRock Inc. and General Counsel of U.S. Funds at
P.O. Box 9011 BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset
Princeton, NJ Management from 1993 to 2006.
08543-9011
1965
* Officers of the Funds serve at the pleasure of the Boards of Directors or Trustees.
Custodians and Transfer Agents
For All Funds:
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Fund Address
P.O. Box 9011
Princeton, NJ 08543-9011
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Sidley Austin LLP
New York, NY 10019
BlackRock MuniYield California Insured Fund, Inc.
Custodian
State Street Bank and
Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock:
Computershare Trust
Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Preferred Stock:
The Bank of New York Mellon
101 Barclay Street--7 West
New York, NY 10286
BlackRock MuniYield Arizona Fund, Inc.
BlackRock MuniYield California Fund, Inc.
BlackRock MuniYield Florida Fund
BlackRock MuniYield Michigan Insured Fund II, Inc.
BlackRock MuniYield New York Insured Fund, Inc.
Custodian
The Bank of
New York Mellon
One Wall Street
New York, NY 10286
Transfer Agents
Common Stock/Shares:
The Bank of New York Mellon
101 Barclay Street--11 East
New York, NY 10286
Preferred Stock/Shares:
The Bank of New York Mellon
101 Barclay Street--7 West
New York, NY 10286
ANNUAL REPORT OCTOBER 31, 2007
Additional Information
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions, the
Funds may at times pay out less than the entire amount of net investment
income earned in any particular month and may at times in any particular month
pay out such accumulated but undistributed income in addition to net
investment income earned in that month. As a result, the dividends paid by the
Funds for any particular month may be more or less than the amount of net
investment income earned by the Funds during such month. The Funds' current
accumulated but undistributed net investment income, if any, is disclosed in
the Statements of Net Assets, which comprises part of the financial
information included in these reports.
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Arizona Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-C) shareholders of BlackRock
MuniYield Arizona Fund, Inc. voted on the following proposal, which was
approved at an annual shareholders' meeting on August 16, 2007. This proposal
was part of the reorganization of the Fund's Board of Directors to take effect
on or about November 1, 2007. A description of the proposal and number of
shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 4,353,156 44,992
Richard E. Cavanagh 4,353,156 44,992
Richard S. Davis 4,353,156 44,992
Kent Dixon 4,353,156 44,992
Kathleen F. Feldstein 4,355,080 43,068
James T. Flynn 4,353,156 44,992
Henry Gabbay 4,353,156 44,992
Jerrold B. Harris 4,353,156 44,992
R. Glenn Hubbard 4,353,156 44,992
Karen P. Robards 4,353,156 44,992
Robert S. Salomon, Jr. 4,353,156 44,992
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-C) of BlackRock MuniYield Arizona Fund,
Inc. voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 1,361 46
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield California Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-D) shareholders of BlackRock
MuniYield California Fund, Inc. voted on the following proposal, which was
approved at an annual shareholders' meeting on August 16, 2007. This proposal
was part of the reorganization of the Fund's Board of Directors to take effect
on or about November 1, 2007. A description of the proposal and number of
shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 19,099,248 384,706
Richard E. Cavanagh 19,114,533 369,421
Richard S. Davis 19,110,948 373,006
Kent Dixon 19,113,370 370,584
Kathleen F. Feldstein 19,111,272 372,682
James T. Flynn 19,113,200 370,754
Henry Gabbay 19,119,861 364,093
Jerrold B. Harris 19,107,298 376,656
R. Glenn Hubbard 19,114,397 369,557
Karen P. Robards 19,115,501 368,453
Robert S. Salomon, Jr. 19,108,937 375,017
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-D) of BlackRock MuniYield California
Fund, Inc. voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 6,076 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield California Insured Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-F) shareholders of BlackRock
MuniYield California Insured Fund, Inc. voted on the following proposal, which
was approved at an annual shareholders' meeting on August 16, 2007. This
proposal was part of the reorganization of the Fund's Board of Directors to
take effect on or about November 1, 2007. A description of the proposal and
number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 31,592,518 490,474
Richard E. Cavanagh 31,644,523 438,469
Richard S. Davis 31,646,609 436,383
Kent Dixon 31,644,249 438,743
Kathleen F. Feldstein 31,640,971 442,021
James T. Flynn 31,644,051 438,941
Henry Gabbay 31,679,842 403,150
Jerrold B. Harris 31,591,318 491,674
R. Glenn Hubbard 31,644,320 438,672
Karen P. Robards 31,646,218 436,774
Robert S. Salomon, Jr. 31,643,467 439,525
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-F) of BlackRock MuniYield California
Insured Fund, Inc. voted on the following proposal, which was approved at an
annual shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 8,504 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Florida Fund
During the six-month period ended October 31, 2007, the Common Shareholders
and Auction Market Preferred Shareholders (Series A-C) of BlackRock MuniYield
Florida Fund voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Trustees to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted
are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: G. Nicholas Beckwith, III 12,264,155 355,067
Richard E. Cavanagh 12,264,691 354,531
Richard S. Davis 12,266,016 353,206
Kent Dixon 12,266,000 353,222
Kathleen F. Feldstein 12,262,105 357,117
James T. Flynn 12,264,691 354,531
Henry Gabbay 12,371,138 248,084
Jerrold B. Harris 12,264,766 354,456
R. Glenn Hubbard 12,262,846 356,376
Karen P. Robards 12,266,016 353,206
Robert S. Salomon, Jr. 12,262,950 356,272
During the six-month period ended October 31, 2007, the Auction Market
Preferred Shareholders (Series A-C) of BlackRock MuniYield Florida Fund voted
on the following proposal, which was approved at an annual shareholders'
meeting on August 16, 2007. This proposal was part of the reorganization of
the Fund's Board of Trustees to take effect on or about November 1, 2007. A
description of the proposal and number of shares voted for each Trustee are as
follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: Frank J. Fabozzi and W. Carl Kester 3,974 10
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Michigan Insured Fund II, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-C) shareholders of BlackRock
MuniYield Michigan Insured Fund II, Inc. voted on the following proposal,
which was approved at an annual shareholders' meeting on August 16, 2007.
This proposal was part of the reorganization of the Fund's Board of Directors
to take effect on or about November 1, 2007. A description of the proposal and
number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 11,262,086 198,777
Richard E. Cavanagh 11,261,343 199,520
Richard S. Davis 11,263,943 196,920
Kent Dixon 11,253,312 207,551
Kathleen F. Feldstein 11,250,692 210,171
James T. Flynn 11,252,442 208,421
Henry Gabbay 11,290,698 170,165
Jerrold B. Harris 11,260,316 200,547
R. Glenn Hubbard 11,256,121 204,742
Karen P. Robards 11,260,473 200,390
Robert S. Salomon, Jr. 11,259,943 200,920
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-C) of BlackRock MuniYield Michigan
Insured Fund II, Inc. voted on the following proposal, which was approved at
an annual shareholders' meeting on August 16, 2007. This proposal was part of
the reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 3,886 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield New York Insured Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-F) shareholders of BlackRock
MuniYield New York Insured Fund, Inc. voted on the following proposal, which
was approved at an annual shareholders' meeting on August 16, 2007. This
proposal was part of the reorganization of the Fund's Board of Directors to
take effect on or about November 1, 2007. A description of the proposal and
number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 34,305,251 2,212,494
Richard E. Cavanagh 34,311,967 2,205,778
Richard S. Davis 34,307,825 2,209,920
Kent Dixon 34,289,997 2,227,748
Kathleen F. Feldstein 34,304,393 2,213,352
James T. Flynn 34,302,884 2,214,861
Henry Gabbay 34,326,513 2,191,232
Jerrold B. Harris 34,301,487 2,216,258
R. Glenn Hubbard 34,299,259 2,218,486
Karen P. Robards 34,306,168 2,211,577
Robert S. Salomon, Jr. 34,300,983 2,216,762
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-F) of BlackRock MuniYield New York
Insured Fund, Inc. voted on the following proposal, which was approved at an
annual shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 11,694 150
Fund Certifications
In May 2007, BlackRock MuniYield California Fund, Inc., BlackRock MuniYield
California Insured Fund, Inc., BlackRock MuniYield Florida Fund, BlackRock
MuniYield Michigan Insured Fund II, Inc. and BlackRock MuniYield New York
Insured Fund, Inc. filed their Chief Executive Officer Certification for the
prior year with the New York Stock Exchange pursuant to Section 303A.12(a) of
the New York Stock Exchange Corporate Governance Listing Standards.
The Funds' Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with each
Fund's Form N-CSR and are available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (concluded)
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any non-
public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client
accounts. These nonaffiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web sites. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
ANNUAL REPORT OCTOBER 31, 2007
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit
committee financial experts serving on its audit committee and (ii)
each audit committee financial expert is independent:
Joe Grills (term ended effective November 1, 2007)
Robert S. Salomon, Jr.
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
The registrant's board of directors has determined that W. Carl
Kester and Karen P. Robards qualify as financial experts pursuant
to Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions.
Prof. Kester has been involved in providing valuation and other
financial consulting services to corporate clients since 1978.
Prof. Kester's financial consulting services present a breadth and
level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can
reasonably be expected to be raised by the registrant's financial
statements.
Ms. Robards has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions.
Ms. Robards has been President of Robards & Company, a financial
advisory firm, since 1987. Ms. Robards was formerly an investment
banker for more than 10 years where she was responsible for
evaluating and assessing the performance of companies based on
their financial results. Ms. Robards has over 30 years of
experience analyzing financial statements. She also is the member
of the Audit Committees of one publicly held company and a non-
profit organization.
Under applicable securities laws, a person determined to be an
audit committee financial expert will not be deemed an "expert" for
any purpose, including without limitation for the purposes of
Section 11 of the Securities Act of 1933, as a result of being
designated or identified as an audit committee financial expert.
The designation or identification as an audit committee financial
expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and board
of directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees (b) Audit-Related Fees (1) (c) Tax Fees (2) (d) All Other Fees (3)
Current Previous Current Previous Current Previous Current Previous
Entity Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Name End End End End End End End End
BlackRock
MuniYield
California $52,850 $28,000 $3,500 $3,500 $6,100 $6,000 $1,042 $0
Fund, Inc.
(1) The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included
in Audit Fees.
(2) The nature of the services include tax compliance, tax advice and tax planning.
(3) The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services
provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other
non-audit services provided to the registrant and those non-audit
services provided to the registrant's affiliated service providers
that relate directly to the operations and the financial reporting
of the registrant. Certain of these non-audit services that the
Committee believes are a) consistent with the SEC's auditor
independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be
approved by the Committee without consideration on a specific case-
by-case basis ("general pre-approval"). However, such services
will only be deemed pre-approved provided that any individual
project does not exceed $5,000 attributable to the registrant or
$50,000 for all of the registrants the Committee oversees. Any
proposed services exceeding the pre-approved cost levels will
require specific pre-approval by the Committee, as will any other
services not subject to general pre-approval (e.g., unanticipated
but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next
regularly scheduled in-person board meeting.
(e)(2) None of the services described in each of Items 4(b)
through (d) were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
Current Previous
Fiscal Year Fiscal Year
Entity Name End End
BlackRock MuniYield
California Fund, Inc. $295,142 $2,928,083
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing
audit committee established in accordance with Section 3(a)(58)(A)
of the Exchange Act (15 U.S.C. 78c(a)(58)(A)):
James H. Bodurtha (term ended effective November 1, 2007)
Kenneth A. Froot (term ended effective November 1, 2007)
Joe Grills (term ended effective November 1, 2007)
Herbert I. London (term ended effective November 1, 2007)
Roberta Cooper Ramo (term ended effective November 1, 2007)
Robert S. Salomon, Jr.
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item
1 of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - The registrant has delegated the
voting of proxies relating to Fund portfolio securities to its
investment adviser, BlackRock Advisors, LLC and its sub-adviser, as
applicable. The Proxy Voting Policies and Procedures of the adviser
and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.
Proxy Voting Policies and Procedures
For BlackRock Advisors, LLC
And Its Affiliated SEC Registered Investment Advisers
September 30, 2006
Table of Contents Page
Introduction
Scope of Committee Responsibilities
Special Circumstances
Voting Guidelines
Boards of Directors
Auditors
Compensation and Benefits
Capital Structure
Corporate Charter and By-Laws
Corporate Meetings
Investment Companies
Environmental and Social Issues
Notice to Clients
Proxy Voting Policies and Procedures
These Proxy Voting Policies and Procedures ("Policy") for BlackRock
Advisors, LLC and its affiliated U.S. registered investment advisers (1)
("BlackRock") reflect our duty as a fiduciary under the Investment Advisers
Act of 1940 (the "Advisers Act") to vote proxies in the best interests of our
clients. BlackRock serves as the investment manager for investment companies,
other commingled investment vehicles and/or separate accounts of institutional
and other clients. The right to vote proxies for securities held in such
accounts belongs to BlackRock's clients. Certain clients of BlackRock have
retained the right to vote such proxies in general or in specific
circumstances. (2) Other clients, however, have delegated to BlackRock the
right to vote proxies for securities held in their accounts as part of
BlackRock's authority to manage, acquire and dispose of account assets.
When BlackRock votes proxies for a client that has delegated to
BlackRock proxy voting authority, BlackRock acts as the client's agent. Under
the Advisers Act, an investment adviser is a fiduciary that owes each of its
clients a duty of care and loyalty with respect to all services the adviser
undertakes on the client's behalf, including proxy voting. BlackRock is
therefore subject to a fiduciary duty to vote proxies in a manner BlackRock
believes is consistent with the client's best interests, (3) whether or not
the client's proxy voting is subject to the fiduciary standards of the
Employee Retirement Income Security Act of 1974 ("ERISA"). (4) When voting
proxies for client accounts (including investment companies), BlackRock's
primary objective is to make voting decisions solely in the best interests of
clients and ERISA clients' plan beneficiaries and participants. In fulfilling
its obligations to clients, BlackRock will seek to act in a manner that it
believes is most likely to enhance the economic value of the underlying
securities held in client accounts. (5) It is imperative that BlackRock
considers the interests of its clients, and not the interests of BlackRock,
when voting proxies and that real (or perceived) material conflicts that may
arise between BlackRock's interest and those of BlackRock's clients are
properly addressed and resolved.
(1) The Policy does not apply to BlackRock Asset Management U.K. Limited and
BlackRock Investment Managers International Limited, which are U.S.
registered investment advisers based in the United Kingdom.
(2) In certain situations, a client may direct BlackRock to vote in
accordance with the client's proxy voting policies. In these
situations, BlackRock will seek to comply with such policies to the
extent it would not be inconsistent with other BlackRock legal
responsibilities.
(3) Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins,
President, Ram Trust Services (February 12, 2002) (Section 206 of the
Investment Advisers Act imposes a fiduciary responsibility to vote
proxies fairly and in the best interests of clients); SEC Release No.
IA-2106 (February 3, 2003).
(4) DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at
29 C.F.R. 2509.94-2
(5) Other considerations, such as social, labor, environmental or other
policies, may be of interest to particular clients. While BlackRock is
cognizant of the importance of such considerations, when voting proxies
it will generally take such matters into account only to the extent that
they have a direct bearing on the economic value of the underlying
securities. To the extent that a BlackRock client desires to pursue a
particular social, labor, environmental or other agenda through the
proxy votes made for its securities held through BlackRock as investment
adviser, BlackRock encourages the client to consider retaining direct
proxy voting authority or to appoint independently a special proxy
voting fiduciary other than BlackRock.
Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires,
among other things, that an investment adviser that exercises voting authority
over clients' proxy voting adopt policies and procedures reasonably designed
to ensure that the adviser votes proxies in the best interests of clients,
discloses to its clients information about those policies and procedures and
also discloses to clients how they may obtain information on how the adviser
has voted their proxies.
In light of such fiduciary duties, the requirements of Rule 206(4)-6,
and given the complexity of the issues that may be raised in connection with
proxy votes, BlackRock has adopted these policies and procedures. BlackRock's
Equity Investment Policy Oversight Committee, or a sub-committee thereof (the
"Committee"), addresses proxy voting issues on behalf of BlackRock and its
clients. (6) The Committee is comprised of senior members of BlackRock's
Portfolio Management Group and advised by BlackRock's Legal and Compliance
Department.
(6) Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust
Company FSB, the Committee may also function jointly as the Proxy Voting
Committee for Merrill Lynch Bank & Trust Company FSB trust accounts
managed by personnel dually-employed by BlackRock.
I. Scope of Committee Responsibilities
The Committee shall have the responsibility for determining how to
address proxy votes made on behalf of all BlackRock clients, except for
clients who have retained the right to vote their own proxies, either
generally or on any specific matter. In so doing, the Committee shall seek to
ensure that proxy votes are made in the best interests of clients, and that
proxy votes are determined in a manner free from unwarranted or inappropriate
influences. The Committee shall also oversee the overall administration of
proxy voting for BlackRock accounts. (7)
The Committee shall establish BlackRock's proxy voting guidelines, with
such advice, participation and research as the Committee deems appropriate
from portfolio managers, proxy voting services or other knowledgeable
interested parties. As it is anticipated that there will not necessarily be a
"right" way to vote proxies on any given issue applicable to all facts and
circumstances, the Committee shall also be responsible for determining how the
proxy voting guidelines will be applied to specific proxy votes, in light of
each issuer's unique structure, management, strategic options and, in certain
circumstances, probable economic and other anticipated consequences of
alternative actions. In so doing, the Committee may determine to vote a
particular proxy in a manner contrary to its generally stated guidelines.
The Committee may determine that the subject matter of certain proxy
issues are not suitable for general voting guidelines and requires a case-by-
case determination, in which case the Committee may elect not to adopt a
specific voting guideline applicable to such issues. BlackRock believes that
certain proxy voting issues - such as approval of mergers and other
significant corporate transactions - require investment analysis akin to
investment decisions, and are therefore not suitable for general guidelines.
The Committee may elect to adopt a common BlackRock position on certain proxy
votes that are akin to investment decisions, or determine to permit portfolio
managers to make individual decisions on how best to maximize economic value
for the accounts for which they are responsible (similar to normal buy/sell
investment decisions made by such portfolio managers). (8)
While it is expected that BlackRock, as a fiduciary, will generally
seek to vote proxies over which BlackRock exercises voting authority in a
uniform manner for all BlackRock clients, the Committee, in conjunction with
the portfolio manager of an account, may determine that the specific
circumstances of such account require that such account's proxies be voted
differently due to such account's investment objective or other factors that
differentiate it from other accounts. In addition, on proxy votes that are
akin to investment decisions, BlackRock believes portfolio managers may from
time to time legitimately reach differing but equally valid views, as
fiduciaries for BlackRock's clients, on how best to maximize economic value in
respect of a particular investment.
(7) The Committee may delegate day-to-day administrative responsibilities
to other BlackRock personnel and/or outside service providers, as
appropriate.
(8) The Committee will normally defer to portfolio managers on proxy votes
that are akin to investment decisions except for proxy votes that
involve a material conflict of interest, in which case it will
determine, in its discretion, the appropriate voting process so as to
address such conflict.
The Committee will also be responsible for ensuring the maintenance of
records of each proxy vote, as required by Advisers Act Rule 204-2. (9) All
records will be maintained in accordance with applicable law. Except as may be
required by applicable legal requirements, or as otherwise set forth herein,
the Committee's determinations and records shall be treated as proprietary,
nonpublic and confidential.
The Committee shall be assisted by other BlackRock personnel, as may be
appropriate. In particular, the Committee has delegated to the BlackRock
Operations Department responsibility for monitoring corporate actions and
ensuring that proxy votes are submitted in a timely fashion. The Operations
Department shall ensure that proxy voting issues are promptly brought to the
Committee's attention and that the Committee's proxy voting decisions are
appropriately disseminated and implemented.
To assist BlackRock in voting proxies, the Committee may retain the
services of a firm providing such services. BlackRock has currently retained
Institutional Shareholder Services ("ISS") in that role. ISS is an
independent adviser that specializes in providing a variety of fiduciary-level
proxy-related services to institutional investment managers, plan sponsors,
custodians, consultants, and other institutional investors. The services
provided to BlackRock may include, but are not limited to, in-depth research,
voting recommendations (which the Committee is not obligated to follow), vote
execution, and recordkeeping.
(9) The Committee may delegate the actual maintenance of such records to an
outside service provider. Currently, the Committee has delegated the
maintenance of such records to Institutional Shareholder Services.
II Special Circumstances
Routine Consents. BlackRock may be asked from time to time to consent
to an amendment to, or grant a waiver under, a loan agreement, partnership
agreement, indenture or other governing document of a specific financial
instrument held by BlackRock clients. BlackRock will generally treat such
requests for consents not as "proxies" subject to these Proxy Voting Policies
and Procedures but as investment matters to be dealt with by the responsible
BlackRock investment professionals would, provided that such consents (i) do
not relate to the election of a board of directors or appointment of auditors
of a public company, and (ii) either (A) would not otherwise materially affect
the structure, management or control of a public company, or (B) relate to a
company in which BlackRock clients hold only interests in bank loans or debt
securities and are consistent with customary standards and practices for such
instruments.
Securities on Loan. Registered investment companies that are advised by
BlackRock as well as certain of our advisory clients may participate in
securities lending programs. Under most securities lending arrangements,
securities on loan may not be voted by the lender (unless the loan is
recalled). BlackRock believes that each client has the right to determine
whether participating in a securities lending program enhances returns, to
contract with the securities lending agent of its choice and to structure a
securities lending program, through its lending agent, that balances any
tension between loaning and voting securities in a matter that satisfies such
client. If client has decided to participate in a securities lending program,
BlackRock will therefore defer to the client's determination and not attempt
to seek recalls solely for the purpose of voting routine proxies as this could
impact the returns received from securities lending and make the client a less
desirable lender in a marketplace. Where a client retains a lending agent
that is unaffiliated with BlackRock, BlackRock will generally not seek to vote
proxies relating to securities on loan because BlackRock does not have a
contractual right to recall such loaned securities for the purpose of voting
proxies. Where BlackRock or an affiliate acts as the lending agent, BlackRock
will also generally not seek to recall loaned securities for proxy voting
purposes, unless the portfolio manager responsible for the account or the
Committee determines that voting the proxy is in the client's best interest
and requests that the security be recalled.
Voting Proxies for Non-US Companies. While the proxy voting process is
well established in the United States, voting proxies of non-US companies
frequently involves logistical issues which can affect BlackRock's ability to
vote such proxies, as well as the desirability of voting such proxies. These
issues include (but are not limited to): (i) untimely notice of shareholder
meetings, (ii) restrictions on a foreigner's ability to exercise votes, (iii)
requirements to vote proxies in person, (iv) "shareblocking" (requirements
that investors who exercise their voting rights surrender the right to dispose
of their holdings for some specified period in proximity to the shareholder
meeting), (v) potential difficulties in translating the proxy, and (vi)
requirements to provide local agents with unrestricted powers of attorney to
facilitate voting instructions.
As a consequence, BlackRock votes proxies of non-US companies only on a
"best-efforts" basis. In addition, the Committee may determine that it is
generally in the best interests of BlackRock clients not to vote proxies of
companies in certain countries if the Committee determines that the costs
(including but not limited to opportunity costs associated with shareblocking
constraints) associated with exercising a vote generally are expected to
outweigh the benefit the client will derive by voting on the issuer's
proposal. If the Committee so determines in the case of a particular country,
the Committee (upon advice from BlackRock portfolio managers) may override
such determination with respect to a particular issuer's shareholder meeting
if the Committee believes the benefits of seeking to exercise a vote at such
meeting outweighs the costs, in which case BlackRock will seek to vote on a
best-efforts basis.
Securities Sold After Record Date. With respect to votes in connection
with securities held on a particular record date but sold from a client
account prior to the holding of the related meeting, BlackRock may take no
action on proposals to be voted on in such meeting.
Conflicts of Interest. From time to time, BlackRock may be required to
vote proxies in respect of an issuer that is an affiliate of BlackRock (a
"BlackRock Affiliate"), or a money management or other client of BlackRock (a
"BlackRock Client").(10) In such event, provided that the Committee is aware
of the real or potential conflict, the following procedures apply:
* The Committee intends to adhere to the voting guidelines set forth
herein for all proxy issues including matters involving BlackRock
Affiliates and BlackRock Clients. The Committee may, in its
discretion for the purposes of ensuring that an independent
determination is reached, retain an independent fiduciary to advise
the Committee on how to vote or to cast votes on behalf of
BlackRock's clients; and
* if the Committee determines not to retain an independent fiduciary,
or does not desire to follow the advice of such independent
fiduciary, the Committee shall determine how to vote the proxy after
consulting with the BlackRock Legal and Compliance Department and
concluding that the vote cast is in the client's best interest
notwithstanding the conflict.
(10) Such issuers may include investment companies for which BlackRock
provides investment advisory, administrative and/or other services.
III. Voting Guidelines
The Committee has determined that it is appropriate and in the best
interests of BlackRock's clients to adopt the following voting guidelines,
which represent the Committee's usual voting position on certain recurring
proxy issues that are not expected to involve unusual circumstances. With
respect to any particular proxy issue, however, the Committee may elect to
vote differently than a voting guideline if the Committee determines that
doing so is, in the Committee's judgment, in the best interest of its clients.
The guidelines may be reviewed at any time upon the request of any Committee
member and may be amended or deleted upon the vote of a majority of voting
Committee members present at a Committee meeting for which there is a quorum.
A. Boards of Directors
These proposals concern those issues submitted to shareholders relating
to the composition of the Board of Directors of companies other than
investment companies. As a general matter, the Committee believes that a
company's Board of Directors (rather than shareholders) is most likely to have
access to important, nonpublic information regarding a company's business and
prospects, and is therefore best-positioned to set corporate policy and
oversee management. The Committee therefore believes that the foundation of
good corporate governance is the election of qualified, independent corporate
directors who are likely to diligently represent the interests of shareholders
and oversee management of the corporation in a manner that will seek to
maximize shareholder value over time. In individual cases, the Committee may
look at a Director nominee's history of representing shareholder interests as
a director of other companies, or other factors to the extent the Committee
deems relevant.
The Committee's general policy is to vote:
# VOTE and DESCRIPTION
A.1 FOR nominees for director of United States companies in uncontested
elections, except for nominees who
* have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting(s) due to
illness or company business
* voted to implement or renew a "dead-hand" poison pill
* ignored a shareholder proposal that was approved by either a
majority of the shares outstanding in any year or by the majority of
votes cast for two consecutive years
* failed to act on takeover offers where the majority of the
shareholders have tendered their shares
* are corporate insiders who serve on the audit, compensation or
nominating committees or on a full Board that does not have such
committees composed exclusively of independent directors
* on a case-by-case basis, have served as directors of other companies
with allegedly poor corporate governance
* sit on more than six boards of public companies
A.2 FOR nominees for directors of non-U.S. companies in uncontested
elections, except for nominees from whom the Committee determines to
withhold votes due to the nominees' poor records of representing
shareholder interests, on a case-by-case basis
A.3 FOR proposals to declassify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
A.4 AGAINST proposals to classify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
A.5 AGAINST proposals supporting cumulative voting
A.6 FOR proposals eliminating cumulative voting
A.7 FOR proposals supporting confidential voting
A.8 FOR proposals seeking election of supervisory board members
A.9 AGAINST shareholder proposals seeking additional representation of
women and/or minorities generally (i.e., not specific individuals) to a
Board of Directors
A.10 AGAINST shareholder proposals for term limits for directors
A.11 FOR shareholder proposals to establish a mandatory retirement age for
directors who attain the age of 72 or older
A.12 AGAINST shareholder proposals requiring directors to own a minimum
amount of company stock
A.13 FOR proposals requiring a majority of independent directors on a Board
of Directors
A.14 FOR proposals to allow a Board of Directors to delegate powers to a
committee or committees
A.15 FOR proposals to require audit, compensation and/or nominating
committees of a Board of Directors to consist exclusively of independent
directors
A.16 AGAINST shareholder proposals seeking to prohibit a single person from
occupying the roles of chairman and chief executive officer
A.17 FOR proposals to elect account inspectors
A.18 FOR proposals to fix the membership of a Board of Directors at a
specified size
A.19 FOR proposals permitting shareholder ability to nominate directors
directly
A.20 AGAINST proposals to eliminate shareholder ability to nominate directors
directly
A.21 FOR proposals permitting shareholder ability to remove directors
directly
A.22 AGAINST proposals to eliminate shareholder ability to remove directors
directly
B. Auditors
These proposals concern those issues submitted to shareholders related
to the selection of auditors. As a general matter, the Committee believes
that corporate auditors have a responsibility to represent the interests of
shareholders and provide an independent view on the propriety of financial
reporting decisions of corporate management. While the Committee will
generally defer to a corporation's choice of auditor, in individual cases, the
Committee may look at an auditors' history of representing shareholder
interests as auditor of other companies, to the extent the Committee deems
relevant.
The Committee's general policy is to vote:
B.1 FOR approval of independent auditors, except for
* auditors that have a financial interest in, or material association
with, the company they are auditing, and are therefore believed by
the Committee not to be independent
* auditors who have rendered an opinion to any company which in the
Committee's opinion is either not consistent with best accounting
practices or not indicative of the company's financial situation
* on a case-by-case basis, auditors who in the Committee's opinion
provide a significant amount of non-audit services to the company
B.2 FOR proposals seeking authorization to fix the remuneration of auditors
B.3 FOR approving internal statutory auditors
B.4 FOR proposals for audit firm rotation, except for proposals that would
require rotation after a period of less than 5 years
C. Compensation and Benefits
These proposals concern those issues submitted to shareholders related
to management compensation and employee benefits. As a general matter, the
Committee favors disclosure of a company's compensation and benefit policies
and opposes excessive compensation, but believes that compensation matters are
normally best determined by a corporation's board of directors, rather than
shareholders. Proposals to "micro-manage" a company's compensation practices
or to set arbitrary restrictions on compensation or benefits will therefore
generally not be supported.
The Committee's general policy is to vote:
C.1 IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if
the ISS recommendation is based solely on whether or not the company's
plan satisfies the allowable cap as calculated by ISS. If the
recommendation of ISS is based on factors other than whether the plan
satisfies the allowable cap the Committee will analyze the particular
proposed plan. This policy applies to amendments of plans as well as to
initial approvals.
C.2 FOR proposals to eliminate retirement benefits for outside directors
C.3 AGAINST proposals to establish retirement benefits for outside directors
C.4 FOR proposals approving the remuneration of directors or of supervisory
board members
C.5 AGAINST proposals to reprice stock options
C.6 FOR proposals to approve employee stock purchase plans that apply to all
employees. This policy applies to proposals to amend ESPPs if the plan
as amended applies to all employees.
C.7 FOR proposals to pay retirement bonuses to directors of Japanese
companies unless the directors have served less than three years
C.8 AGAINST proposals seeking to pay outside directors only in stock
C.9 FOR proposals seeking further disclosure of executive pay or requiring
companies to report on their supplemental executive retirement benefits
C.10 AGAINST proposals to ban all future stock or stock option grants to
executives
C.11 AGAINST option plans or grants that apply to directors or employees of
"related companies" without adequate disclosure of the corporate
relationship and justification of the option policy
C.12 FOR proposals to exclude pension plan income in the calculation of
earnings used in determining executive bonuses/compensation
D. Capital Structure
These proposals relate to various requests, principally from
management, for approval of amendments that would alter the capital structure
of a company, such as an increase in authorized shares. As a general matter,
the Committee will support requests that it believes enhance the rights of
common shareholders and oppose requests that appear to be unreasonably
dilutive.
The Committee's general policy is to vote:
D.1 AGAINST proposals seeking authorization to issue shares without
preemptive rights except for issuances up to 10% of a non-US company's
total outstanding capital
D.2 FOR management proposals seeking preemptive rights or seeking
authorization to issue shares with preemptive rights
D.3 FOR management proposals approving share repurchase programs
D.4 FOR management proposals to split a company's stock
D.5 FOR management proposals to denominate or authorize denomination of
securities or other obligations or assets in Euros
D.6 FOR proposals requiring a company to expense stock options (unless the
company has already publicly committed to do so by a certain date).
E. Corporate Charter and By-Laws
These proposals relate to various requests for approval of amendments
to a corporation's charter or by-laws, principally for the purpose of adopting
or redeeming "poison pills". As a general matter, the Committee opposes poison
pill provisions.
The Committee's general policy is to vote:
E.1 AGAINST proposals seeking to adopt a poison pill
E.2 FOR proposals seeking to redeem a poison pill
E.3 FOR proposals seeking to have poison pills submitted to shareholders for
ratification
E.4 FOR management proposals to change the company's name
F. Corporate Meetings
These are routine proposals relating to various requests regarding the
formalities of corporate meetings.
The Committee's general policy is to vote:
F.1 AGAINST proposals that seek authority to act on "any other business that
may arise"
F.2 FOR proposals designating two shareholders to keep minutes of the
meeting
F.3 FOR proposals concerning accepting or approving financial statements and
statutory reports
F.4 FOR proposals approving the discharge of management and the supervisory
board
F.5 FOR proposals approving the allocation of income and the dividend
F.6 FOR proposals seeking authorization to file required documents/other
formalities
F.7 FOR proposals to authorize the corporate board to ratify and execute
approved resolutions
F.8 FOR proposals appointing inspectors of elections
F.9 FOR proposals electing a chair of the meeting
F.10 FOR proposals to permit "virtual" shareholder meetings over the Internet
F.11 AGAINST proposals to require rotating sites for shareholder meetings
G. Investment Companies
These proposals relate to proxy issues that are associated solely with
holdings of shares of investment companies, including, but not limited to,
investment companies for which BlackRock provides investment advisory,
administrative and/or other services. As with other types of companies, the
Committee believes that a fund's Board of Directors (rather than its
shareholders) is best-positioned to set fund policy and oversee management.
However, the Committee opposes granting Boards of Directors authority over
certain matters, such as changes to a fund's investment objective, that the
Investment Company Act of 1940 envisions will be approved directly by
shareholders.
The Committee's general policy is to vote:
G.1 FOR nominees for director of mutual funds in uncontested elections,
except for nominees who
* have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting due to
illness or fund business
* ignore a shareholder proposal that was approved by either a majority
of the shares outstanding in any year or by the majority of votes
cast for two consecutive years
* are interested directors who serve on the audit or nominating
committees or on a full Board that does not have such committees
composed exclusively of independent directors
* on a case-by-case basis, have served as directors of companies with
allegedly poor corporate governance
G.2 FOR the establishment of new series or classes of shares
G.3 AGAINST proposals to change a fund's investment objective to
nonfundamental
G.4 FOR proposals to establish a master-feeder structure or authorizing the
Board to approve a master-feeder structure without a further shareholder
vote
G.5 AGAINST a shareholder proposal for the establishment of a director
ownership requirement
G.6 FOR classified boards of closed-end investment companies
H. Environmental and Social Issues
These are shareholder proposals to limit corporate conduct in some
manner that relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are
inappropriate forums for the discussion of larger social issues, and opposes
shareholder resolutions "micromanaging" corporate conduct or requesting
release of information that would not help a shareholder evaluate an
investment in the corporation as an economic matter. While the Committee is
generally supportive of proposals to require corporate disclosure of matters
that seem relevant and material to the economic interests of shareholders, the
Committee is generally not supportive of proposals to require disclosure of
corporate matters for other purposes.
The Committee's general policy is to vote:
H.1 AGAINST proposals seeking to have companies adopt international codes
of conduct
H.2 AGAINST proposals seeking to have companies provide non-required
reports on:
* environmental liabilities;
* bank lending policies;
* corporate political contributions or activities;
* alcohol advertising and efforts to discourage drinking by minors;
* costs and risk of doing business in any individual country;
* involvement in nuclear defense systems
H.3 AGAINST proposals requesting reports on Maquiladora operations or
on CERES principles
H.4 AGAINST proposals seeking implementation of the CERES principles
Notice to Clients
BlackRock will make records of any proxy vote it has made on behalf of
a client available to such client upon request.(11) BlackRock will use its
best efforts to treat proxy votes of clients as confidential, except as it may
decide to best serve its clients' interests or as may be necessary to effect
such votes or as may be required by law.
BlackRock encourage clients with an interest in particular proxy voting
issues to make their views known to BlackRock, provided that, in the absence
of specific written direction from a client on how to vote that client's
proxies, BlackRock reserves the right to vote any proxy in a manner it deems
in the best interests of its clients, as it determines in its sole discretion.
These policies are as of the date indicated on the cover hereof. The
Committee may subsequently amend these policies at any time, without notice.
(11) Such request may be made to the client's portfolio or relationship
manager or addressed in writing to Secretary, BlackRock Equity
Investment Policy Oversight Committee, Legal and Compliance Department,
BlackRock Inc., 40 East 52nd Street, New York, New York 10022.
Information about how the Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of October 31, 2007.
(a)(1) BlackRock MuniYield California Fund, Inc. is managed by a
team of investment professionals comprised of Theodore R. Jaeckel,
Jr., CFA, Managing Director at BlackRock, and Walter O'Connor,
Managing Director at BlackRock. Each is a member of BlackRock's
municipal tax-exempt management group. Mr. Jaeckel and Mr.
O'Connor are responsible for setting the Fund's overall investment
strategy and overseeing the management of the Fund. Mr. O'Connor
is also the Fund's lead portfolio manager and is responsible for
the day-to-day management of the Fund's portfolio and the selection
of its investments. Mr. Jaeckel has been a member of the Fund's
management team since 2006. Mr. O'Connor has been the Fund's
portfolio manager since 1992.
Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management)
of Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to
2006 and a Director of MLIM from 1997 to 2005. He has been a
portfolio manager with BlackRock or MLIM since 1991.
Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management)
of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to
2002. He has been a portfolio manager with BlackRock or MLIM since
1991.
(a)(2) As of October 31, 2007:
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
Walter
O'Connor 80 0 0 0 0 0
$28,444,030,649 $ 0 $0 $0 $ 0 $0
Theodore R.
Jaeckel, Jr. 80 1 0 0 1 0
$28,444,030,649 $26,763,472 $0 $0 $26,763,472 $0
(iv) Potential Material Conflicts of Interest
BlackRock, Inc. and its affiliates (collectively, herein
"BlackRock") has built a professional working environment, firm-
wide compliance culture and compliance procedures and systems
designed to protect against potential incentives that may favor one
account over another. BlackRock has adopted policies and procedures
that address the allocation of investment opportunities, execution
of portfolio transactions, personal trading by employees and other
potential conflicts of interest that are designed to ensure that
all client accounts are treated equitably over time. Nevertheless,
BlackRock furnishes investment management and advisory services to
numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to
other clients or accounts (including accounts which are hedge funds
or have performance or higher fees paid to BlackRock, or in which
portfolio managers have a personal interest in the receipt of such
fees), which may be the same as or different from those made to the
Fund. In addition, BlackRock, its affiliates and any officer,
director, stockholder or employee may or may not have an interest
in the securities whose purchase and sale BlackRock recommends to
the Fund. BlackRock, or any of its affiliates, or any officer,
director, stockholder, employee or any member of their families may
take different actions than those recommended to the Fund by
BlackRock with respect to the same securities. Moreover, BlackRock
may refrain from rendering any advice or services concerning
securities of companies of which any of BlackRock's (or its
affiliates') officers, directors or employees are directors or
officers, or companies as to which BlackRock or any of its
affiliates or the officers, directors and employees of any of them
has any substantial economic interest or possesses material non-
public information. Each portfolio manager also may manage accounts
whose investment strategies may at times be opposed to the strategy
utilized for the Fund. In this connection, it should be noted that
certain portfolio managers currently manage certain accounts that
are subject to performance fees. In addition, certain portfolio
managers assist in managing certain hedge funds and may be entitled
to receive a portion of any incentive fees earned on such funds and
a portion of such incentive fees may be voluntarily or
involuntarily deferred. Additional portfolio managers may in the
future manage other such accounts or funds and may be entitled to
receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock
attempts to allocate investments in a fair and equitable manner
among client accounts, with no account receiving preferential
treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated
fairly and equitably among client accounts over time. This policy
also seeks to achieve reasonable efficiency in client transactions
and provide BlackRock with sufficient flexibility to allocate
investments in a manner that is consistent with the particular
investment discipline and client base.
(a)(3) As of October 31, 2007:
Portfolio Manager Compensation
The portfolio manager compensation program of BlackRock is
critical to BlackRock's ability to attract and retain the most
talented asset management professionals. This program ensures that
compensation is aligned with maximizing investment returns and it
provides a competitive pay opportunity for competitive performance.
Compensation Program
The elements of total compensation for BlackRock portfolio
managers are: fixed base salary, annual performance-based cash and
stock compensation (cash and stock bonus) and other benefits.
BlackRock has balanced these components of pay to provide portfolio
managers with a powerful incentive to achieve consistently superior
investment performance. By design, portfolio manager compensation
levels fluctuate--both up and down--with the relative investment
performance of the portfolios that they manage.
Base Salary
Under the BlackRock approach, like that of many asset
management firms, fixed base salaries represent a relatively small
portion of a portfolio manager's total compensation. This approach
serves to enhance the motivational value of the performance-based
(and therefore variable) compensation elements of the compensation
program.
Performance-Based Compensation
BlackRock believes that the best interests of investors are
served by recruiting and retaining exceptional asset management
talent and managing their compensation within a consistent and
disciplined framework that emphasizes pay for performance in the
context of an intensely competitive market for talent. To that end,
the portfolio manager incentive compensation is based on a
formulaic compensation program.
BlackRock's formulaic portfolio manager compensation program
includes: pre-tax investment performance relative to the
appropriate competitors or benchmarks over 1-, 3- and 5-year
performance periods and a measure of operational efficiency. If a
portfolio manager's tenure is less than 5 years, performance
periods will reflect time in position. Portfolio managers are
compensated based on products they manage. For these purposes, the
performance of the Fund is compared to the Lipper Closed-end
California Municipal Debt Funds classification. A smaller
discretionary element of portfolio manager compensation may include
consideration of: financial results, expense control, profit
margins, strategic planning and implementation, quality of client
service, market share, corporate reputation, capital allocation,
compliance and risk control, leadership, workforce diversity,
supervision, technology and innovation. All factors are considered
collectively by BlackRock management.
Cash Bonus
Performance-based compensation is distributed to portfolio
managers in a combination of cash and stock. Typically, the cash
bonus, when combined with base salary, represents more than 60% of
total compensation for the portfolio managers.
Stock Bonus
A portion of the dollar value of the total annual performance-
based bonus is paid in restricted shares of stock of BlackRock,
Inc. (the "Company"). Paying a portion of annual bonuses in stock
puts compensation earned by a portfolio manager for a given year
"at risk" based on the Company's ability to sustain and improve its
performance over future periods. The ultimate value of stock
bonuses is dependent on future Company stock price performance. As
such, the stock bonus aligns each portfolio manager's financial
interests with those of the Company's shareholders and encourages a
balance between short-term goals and long-term strategic
objectives. Management strongly believes that providing a
significant portion of competitive performance-based compensation
in stock is in the best interests of investors and shareholders.
This approach ensures that portfolio managers participate as
shareholders in both the "downside risk" and "upside opportunity"
of the Company's performance. Portfolio managers, therefore, have a
direct incentive to protect the Company's reputation for integrity.
Other Benefits
Portfolio managers are also eligible to participate in broad-
based plans offered generally to BlackRock employees, including
broad-based retirement, 401(k), health, and other employee benefit
plans. For example, BlackRock, Inc. has created a variety of
incentive savings plans in which BlackRock employees are eligible
to participate, including a 401(k) plan, the BlackRock Retirement
Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan
(ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay
contributed to the plan capped at $4,000 per year, and a company
retirement contribution equal to 3% of eligible compensation, plus
an additional contribution of 2% for any year in which BlackRock
has positive net operating income. The RSP offers a range of
investment options, including registered investment companies
managed by the firm. Company contributions follow the investment
direction set by participants for their own contributions or
absent, employee investment direction, are invested into a stable
value fund. The ESPP allows for investment in BlackRock common
stock at a 5% discount on the fair market value of the stock on the
purchase date. Annual participation in the ESPP is limited to the
purchase of 1,000 shares or a dollar value of $25,000. Each
portfolio manager is eligible to participate in these plans.
(a)(4) Beneficial Ownership of Securities. As of October 31,
2007, neither of Messrs. Jaeckel or O'Connor beneficially
owned any stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to
these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded
that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940,
as amended (the "1940 Act")) are effective as of a date within 90
days of the filing of this report based on the evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940
Act and Rule 13a-15(b) under the Securities and Exchange Act of
1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940
Act) that occurred during the second fiscal quarter of the period
covered by this report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniYield California Fund, Inc.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield California Fund, Inc.
Date: December 19, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield California Fund, Inc.
Date: December 19, 2007
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield California Fund, Inc.
Date: December 19, 2007