N-CSR 1 e50074ncsr.htm ANNUAL REPORT

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 811-07083

 

Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 07/31/2012

 

Date of reporting period: 07/31/2012

 

Item 1 – Report to Stockholders

 
 

July 31, 2012


Annual Report

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

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

Not FDIC Insured • No Bank Guarantee • May Lose Value

 

 
 

Table of Contents

  Page
 
Dear Shareholder 3
Annual Report:  
Municipal Market Overview 4
Fund Summaries 5
The Benefits and Risks of Leveraging 10
Derivative Financial Instruments 11
Financial Statements:  
Schedules of Investments 12
Statements of Assets and Liabilities 28
Statements of Operations 29
Statements of Changes in Net Assets 30
Statements of Cash Flows 33
Financial Highlights 34
Notes to Financial Statements 39
Report of Independent Registered Public Accounting Firm 48
Important Tax Information 48
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements 49
Automatic Dividend Reinvestment Plans 53
Officers and Directors 54
Additional Information 57

 

2ANNUAL REPORTJULY 31, 2012
 

Dear Shareholder

About this time one year ago, financial markets fell into turmoil, triggered by Standard & Poor’s historic downgrade of US government debt. Since then, asset prices have continued to move broadly in “risk-on” rallies and “risk-off” retreats driven by macro-level concerns, primarily the sovereign debt crisis in Europe and uncertainty about global economic growth.

Equity markets crumbled in the third quarter of 2011 as fearful investors fled riskier assets in favor of traditionally safe investments including US Treasuries and gold. In October, however, improving economic data and more concerted efforts among European leaders toward stemming the region’s debt crisis drew investors back to the markets. Improving sentiment carried over into early 2012 as investors saw some relief from the world’s financial woes. Volatility abated and risk assets (including stocks, commodities and high yield bonds) moved boldly higher through the first two months of 2012 while climbing Treasury yields pressured higher-quality fixed income assets.

Markets reversed course in the spring when Europe’s debt problems boiled over once again. High levels of volatility returned as political instability in Greece threatened the country’s membership in the euro zone. Spain faced severe deficit issues while the nation’s banks clamored for liquidity. Yields on Spanish and Italian government debt rose to levels deemed unsustainable. European leaders conferred and debated vehemently over the need for fiscal integration among the 17 nations comprising the euro currency bloc as a means to resolve the crisis for the long term.

Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, became particularly worrisome. In the United States, disappointing jobs reports dealt a crushing blow to sentiment. Risk assets sold off in the second quarter as investors again retreated to safe haven assets.

The summer brought a modest rebound in most asset classes. However, financial markets continued to swing sharply in both directions as investors reacted to mixed economic data as well as comments and policy actions — or lack of action — from central banks around the globe.

On the whole, higher quality investments outperformed riskier asset classes for the 12 months ended July 31, 2012 as investors continued to focus on safety. US Treasury bonds delivered the strongest returns, followed by tax-exempt municipal bonds. Some higher-risk investments, including US large-cap stocks and corporate bonds, managed to post gains for the one-year period, and while US small-cap stocks generated a slight gain for the 12-month period, they posted a marginal loss for the last 6 months. International and emerging equities, which experienced significant downturns in 2011, lagged other asset classes amid ongoing global uncertainty. US large-cap stocks and high yield bonds rallied higher in recent months as many investors increased their appetite for risk. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

We know that investors continue to face a world of uncertainty and highly volatile markets, but we also believe these challenging times present many opportunities. We remain committed to working with you and your financial professional to identify actionable ideas for your portfolio. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,


Rob Kapito
President, BlackRock Advisors, LLC


“We know that investors continue to face a world of uncertainty and highly volatile markets, but we also believe these challenging times present many opportunities.”

Rob Kapito
President, BlackRock Advisors, LLC

Total Returns as of July 31, 2012

   6-month  12-month
 
US large cap equities   6.25%   9.13%
(S&P 500® Index)          
US small cap equities   (0.03)   0.19 
(Russell 2000® Index)          
International equities   (1.15)   (11.45)
(MSCI Europe, Australasia,          
Far East Index)          
Emerging market   (4.83)   (13.93)
equities (MSCI Emerging          
Markets Index)          
3-month Treasury bill   0.05    0.07 
(BofA Merrill Lynch          
3-Month US Treasury          
Bill Index)          
US Treasury securities   4.31    15.58 
(BofA Merrill Lynch 10-          
Year US Treasury Index)          
US investment grade   2.88    7.25 
bonds (Barclays US          
Aggregate Bond Index)          
Tax-exempt municipal   3.22    10.70 
bonds (S&P Municipal          
Bond Index)          
US high yield bonds   6.05    8.00 
(Barclays US Corporate          
High Yield 2% Issuer          
Capped Index)          

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


 

THIS PAGE NOT PART OF YOUR FUND REPORT3
 

Municipal Market Overview

For the 12-Month Period Ended July 31, 2012

One year ago, the municipal bond market was rebounding from a prolonged weak period stemming from events in the fourth quarter of 2010. Municipals had suffered severe losses in late 2010 amid a steepening US Treasury yield curve, political uncertainty and a flood of inflated headlines about municipal finance troubles. A significant supply-demand imbalance had developed by the end of the year, leading to wider quality spreads and higher yields for municipal bonds heading into 2011.

 

Having lost confidence in municipals, retail investors retreated from the market, resulting in municipal mutual fund outflows totaling $35.1 billion from the middle of November 2010 until the trend finally broke in June 2011. However, weak demand in the first half of 2011 was counterbalanced by lower supply. According to Thomson Reuters, total new issuance was down 32% in 2011 as compared to the prior year.

On August 5, 2011, Standard & Poor’s (“S&P”) downgraded the US government’s credit rating from AAA to AA+. While this led to the downgrade of approximately 11,000 municipal issues directly tied to the US debt rating, this represented a very small fraction of the municipal market and said nothing about the individual municipal credits themselves. In fact, demand for municipal bonds increased as severe volatility in US equities drove investors to more stable asset classes. The municipal market benefited from an exuberant Treasury market and continued muted new issuance. As supply remained constrained, demand from both traditional and non-traditional buyers was strong, pushing long-term municipal bond yields lower and sparking a curve-flattening trend that continued through year end. Ultimately, 2011 was one of the strongest performance years in municipal market history. The S&P Municipal Bond Index returned 10.62% in 2011, making municipal bonds a top-performing fixed income asset class for the year.

Strong demand carried over into 2012 as investors continued to search for yield in a low-rate environment. Municipal market supply-and-demand technicals typically strengthen considerably upon the conclusion of tax season as net negative supply takes hold. This theme remained intact for 2012. In the spring, a resurgence of concerns about Europe’s financial crisis and weakening US economic data drove municipal bond yields lower and prices higher as investors were drawn to the asset class for its relatively low volatility in addition to the income and capital preservation it offers. The S&P Municipal Bond Index has gained 5.75% year-to-date.

Overall, the municipal yield curve flattened during the period from July 29, 2011 to July 31, 2012. As measured by Thomson Municipal Market Data, yields declined by 151 basis points (“bps”) to 2.84% on AAA-rated 30-year municipal bonds and by 101 bps to 1.66% on 10-year bonds, while yields on 5-year issues fell 51 bps to 0.65%. While the entire municipal curve flattened over the 12-month time period, the spread between 2- and 30-year maturities tightened by 140 bps, and in the 2- to 10-year range, the spread tightened by 90 bps.

The fundamental picture for municipalities continues to improve. Austerity has been the general theme across the country as states set their budgets, although a small number of states continue to rely on a “kick-the-can” approach to close their budget gaps, using aggressive revenue projections and accounting gimmicks. It has been over a year and a half since the fiscal problems plaguing state and local governments first became highly publicized. Thus far, the prophecy of widespread defaults across the municipal market has not materialized. Through the first half of 2012, approximately $1.07 billion in par value of municipal bonds have entered into debt service default for the first time. This represents only 0.540% of total issuance for that period and 0.029% of total municipal bonds outstanding, as compared to 0.065% for the full year 2011. (Data provided by Bank of America Merrill Lynch.) BlackRock maintains the view that municipal bond defaults will remain in the periphery and the overall market is fundamentally sound. We continue to recognize that careful credit research and security selection remain imperative amid uncertainty in this economic environment.

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

4ANNUAL REPORTJULY 31, 2012
 

Fund Summary as of July 31, 2012 BlackRock Muni New York Intermediate Duration Fund, Inc.

 

Fund Overview

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

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

Performance

For the 12 months ended July 31, 2012, the Fund returned 28.00% based on market price and 15.73% based on net asset value (“NAV”). For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 25.86% based on market price and 13.86% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s long duration posture (greater sensitivity to interest rates) contributed positively to performance as interest rates declined over the period. The Fund’s holdings were concentrated on the long end of the yield curve (within the Fund’s intermediate duration investment mandate), which benefited performance as the curve flattened and long-term interest rates declined more than rates on shorter-dated securities. Also having a positive impact were the Fund’s heavy exposures to transportation, health and education, which were among the better performing sectors for the period. The Fund’s lower quality holdings also enhanced results as credit spreads narrowed during the period. Conversely, the Fund’s most significant credit exposure was in the tax-backed sector, which was one of the weaker performing sectors for the period. The strongest performing sector during the period was tobacco, to which the Fund held limited exposure.

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

Fund Information

Symbol on New York Stock Exchange (“NYSE”) MNE
Initial Offering Date August 1, 2003
Yield on Closing Market Price as of July 31, 2012 ($15.80)1 4.75%
Tax Equivalent Yield 2 7.31%
Current Monthly Distribution per Common Share3 $0.0625
Current Annualized Distribution per Common Share3 $0.7500
Economic Leverage as of July 31, 20124 35%

 

1Yield 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.
2Tax equivalent yield assumes the maximum federal tax rate of 35%.
3The distribution rate is not constant and is subject to change.
4Represents Variable Rate Demand Preferred Shares (“VRDP Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:        

 

  7/31/12 7/31/11 Change High Low
Market Price $15.80 $12.98 21.73% $15.81 $12.87
Net Asset Value $15.97 $14.51 10.06% $16.02 $14.51

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations

  7/31/12 7/31/11
Transportation    17%    16%
County/City/Special District/School District 17 15
State 14 11
Health 14 14
Utilities 13 10
Education 10 11
Housing   7 11
Corporate   7 11
Tobacco   1   1

 

Credit Quality Allocations5

  7/31/12 7/31/11
AAA/Aaa     6%      5%
AA/Aa 48 41
A 29 25
BBB/Baa   9 18
BB/Ba   2   6
B   1
CCC/Caa   2
Not Rated6   5   3

5Using the higher of S&P’s or Moody’s Investors Service (“Moody’s”) ratings.
6The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2012 and July 31, 2011, the market value of these securities was $1,922,828, representing 2%, and $2,875,100, representing 3%, respectively, of the Fund’s long-term investments.
ANNUAL REPORTJULY 31, 20125
 

Fund Summary as of July 31, 2012 BlackRock MuniYield Arizona Fund, Inc.

 

Fund Overview

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

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

Performance

For the 12 months ended July 31, 2012, the Fund returned 29.05% based on market price and 19.86% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 26.92% based on market price and 16.67% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. Over the one-year period, the Fund benefited from the declining interest rate environment (bond prices rise as interest rates fall), the flattening of the yield curve (long interest rates fell more than short and intermediate rates) and tightening of credit spreads. The Fund’s exposure to zero-coupon bonds and the health sector had a positive impact on performance as these holdings derived the greatest benefit from the decline in interest rates and spread tightening during the period. The Fund’s strategy for hedging interest rate risk was a modest detractor from performance as the Fund held a short position in US Treasury futures while rates generally declined.

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

Fund Information

Symbol on NYSE Amex MZA
Initial Offering Date October 29, 1993
Yield on Closing Market Price as of July 31, 2012 ($15.61)1 5.34%
Tax Equivalent Yield 2 8.22%
Current Monthly Distribution per Common Share3 $0.0695
Current Annualized Distribution per Common Share3 $0.8340
Economic Leverage as of July 31, 20124 37%

1Yield 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.
2Tax equivalent yield assumes the maximum federal tax rate of 35%.
3The distribution rate is not constant and is subject to change.
4Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/12 7/31/11 Change High Low
Market Price $15.61 $12.83 21.67% $16.25 $12.19
Net Asset Value $15.12 $13.38 13.00% $15.17 $13.38

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations

  7/31/12 7/31/11
County/City/Special District/School District    27%    34%
State 21 19
Utilities 19 15
Health 12 11
Education   9 10
Corporate   6   3
Transportation   4   5
Housing   2   3

Credit Quality Allocations5

  7/31/12 7/31/11
AAA/Aaa    14%    17%
AA/Aa 42 44
A 30 25
BBB/Baa 11   9
BB/Ba   1
B   —6   1
Not Rated7   3   3

5Using the higher of S&P’s or Moody’s ratings.
6Includes a less than 1% investment.
7The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2012 and July 31, 2011, the market value of these securities was $1,172,270, representing 1%, and $2,615,595, representing 3%, respectively, of the Fund’s long-term investments.
6ANNUAL REPORTJULY 31, 2012
 

Fund Summary as of July 31, 2012 BlackRock MuniYield California Fund, Inc.

 

Fund Overview

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

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

Performance

For the 12 months ended July 31, 2012, the Fund returned 38.46% based on market price and 25.45% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 30.47% based on market price and 21.65% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s long duration posture (sensitivity to interest rate movements) had a positive impact on performance as interest rates generally declined amid the investor flight-to-quality in the US Treasury market. Leverage achieved through the use of tender option bonds while the municipal yield curve was historically steep boosted returns. The Fund’s holdings of higher quality essential service revenue bonds contributed positively, as did holdings of select general obligation bonds and school district credits with stronger underlying fundamentals. Investments in the health, education, transportation and utilities sectors were particularly strong contributors. Additionally, purchases of zero-coupon bonds deemed undervalued added to the Fund’s total return. The Fund used US Treasury financial futures contracts to hedge against rising interest rates. These positions had a modestly negative impact on returns as interest rates declined over the period.

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

Fund Information

 

 
Symbol on NYSE MYC
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of July 31, 2012 ($17.31)1 5.48%
Tax Equivalent Yield2 8.43%
Current Monthly Distribution per Common Share3 $0.079
Current Annualized Distribution per Common Share3 $0.948
Economic Leverage as of July 31, 20124 38%

1Yield 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.
2Tax equivalent yield assumes the maximum federal tax rate of 35%.
3The distribution rate is not constant and is subject to change.
4Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/12 7/31/11 Change High Low
Market Price $17.31 $13.29 30.25% $17.52 $13.07
Net Asset Value $16.97 $14.38 18.01% $17.02 $14.38


The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations

  7/31/12 7/31/11
County/City/Special District/School District    41%   43%
Utilities 18 24
Health 14 10
Education 12   7
State   8   4
Transportation   6   5
Housing   1   1
Corporate   —5   6

 

5Includes a less than 1% investment.

Credit Quality Allocations6

  7/31/12 7/31/11
AAA/Aaa      7%      7%
AA/Aa 69 66
A 23 18
BBB/Baa   1   9

 

6Using the higher of S&P’s or Moody’s ratings.
ANNUAL REPORTJULY 31, 20127
 

Fund Summary as of July 31, 2012 BlackRock MuniYield Investment Fund

 

Fund Overview

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

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

Performance

For the 12 months ended July 31, 2012, the Fund returned 34.44% based on market price and 26.55% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 29.37% based on market price and 20.77% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s long duration posture (greater sensitivity to interest rates) contributed positively to performance as the yield curve flattened (i.e., longer-term interest rates fell more than shorter rates) and bond prices moved higher on the long end of the municipal curve. The Fund’s longer-dated holdings in the health, transportation and utilities sectors experienced the best price appreciation. The Fund used US Treasury financial futures contracts as a means of hedging interest rate risk. These positions had a slight negative impact on results as interest rates declined over the period.

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

Fund Information

 

 
Symbol on NYSE MYF
Initial Offering Date February 28, 1992
Yield on Closing Market Price as of July 31, 2012 ($16.52)1 5.74%
Tax Equivalent Yield2 8.83%
Current Monthly Distribution per Common Share3 $0.079
Current Annualized Distribution per Common Share3 $0.948
Economic Leverage as of July 31, 20124 40%

 

1Yield 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.
2Tax equivalent yield assumes the maximum federal tax rate of 35%.
3The distribution rate is not constant and is subject to change.
4Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/12 7/31/11 Change High Low
Market Price $16.52 $13.08 26.30% $16.80 $12.48
Net Asset Value $16.30 $13.71 18.89% $16.35 $13.71

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations

  7/31/12 7/31/11
County/City/Special District/School District    20%    25%
Transportation 20 22
Health 17 17
Utilities 16 16
State 11   5
Education   9   7
Housing   3   4
Corporate   3   3
Tobacco   1   1

 

Credit Quality Allocations5

  7/31/12 7/31/11
AAA/Aaa    14%   10%
AA/Aa 60 56
A 19 25
BBB/Baa   6   7
Not Rated   1    26

 

5Using the higher of S&P’s or Moody’s ratings.
6The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2011, the market value of these securities was $5,683,625, representing 2% of the Fund’s long-term investments.
8ANNUAL REPORTJULY 31, 2012
 

Fund Summary as of July 31, 2012 BlackRock MuniYield New Jersey Fund, Inc.

 

Fund Overview

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

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

Performance

For the 12 months ended July 31, 2012, the Fund returned 33.59% based on market price and 20.72% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 30.62% based on market price and 18.72% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s long duration posture (greater sensitivity to interest rates) contributed positively to performance as the yield curve flattened (i.e., longer-term interest rates fell more than shorter rates) and bond prices moved higher on the long end of the municipal curve. The Fund’s longer-dated holdings in the health, corporate-backed and utilities sectors experienced the best price appreciation. The Fund used US Treasury financial futures contracts as a means of hedging interest rate risk. These positions had a slight negative impact on results as interest rates declined over the period.

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

Fund Information

 

 
Symbol on NYSE MYJ
Initial Offering Date May 1,1992
Yield on Closing Market Price as of July 31, 2012 ($17.07)1 5.20%
Tax Equivalent Yield2 8.00%
Current Monthly Distribution per Common Share3 $0.074
Current Annualized Distribution per Common Share3 $0.888
Economic Leverage as of July 31, 20124 35%

 

1Yield 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.
2Tax equivalent yield assumes the maximum federal tax rate of 35%.
3The distribution rate is not constant and is subject to change.
4Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/12 7/31/11 Change High Low
Market Price $17.07 $13.53 26.16% $17.07 $13.23
Net Asset Value $16.92 $14.84 14.02% $16.98 $14.84

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations

  7/31/12 7/31/11
State    35%    24%
Transportation 16 20
Education 14 14
County/City/Special District/School District 10 12
Health   9 11
Utilities   7   3
Housing   6 11
Corporate   3   4
Tobacco   —   1

 

Credit Quality Allocations5

  7/31/12 7/31/11
AAA/Aaa     5%    10%
AA/Aa 39 38
A 48 40
BBB/Baa   7 12
Not Rated   16

 

5Using the higher of S&P’s or Moody’s ratings.
6The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2012, the market value of these securities was $3,600,470, representing 1% of the Fund’s long-term investments.
ANNUAL REPORTJULY 31, 20129
 

The Benefits and Risks of Leveraging

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

To obtain leverage, the Funds issue Variable Rate Demand Preferred Shares (“VRDP Shares”) and previously issued and had outstanding Auction Market Preferred Shares (“AMPS”) (VRDP Shares, and as applicable AMPS, are collectively referred to as “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Funds invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred 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 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Fund pays higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of TOBs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds are permitted to issue senior securities in the form of equity securities (e.g. Preferred Shares) up to 50% of their total managed assets (each Fund’s total assets less the sum of its accrued liabilities). In addition, each Fund voluntarily limits its economic leverage to 50% of its total managed assets and 45% for Funds with VRDP Shares. As of July 31, 2012, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

  Percent of
  Economic
  Leverage
MNE 35%
MZA 37%
MYC 38%
MYF 40%
MYJ 35%

 

10ANNUAL REPORTJULY 31, 2012
 

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including financial futures contracts, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

ANNUAL REPORTJULY 31, 201211
 
Schedule of Investments July 31, 2012 BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
  Par  
Municipal Bonds (000) Value
 
New York — 124.4%    
Corporate — 11.0%    
Essex County Industrial Development Agency,    
Refunding RB, International Paper, Series A, AMT,    
5.20%, 12/01/23 $     1,000 $     1,032,410
Jefferson County Industrial Development Agency New York,    
Refunding RB, Solid Waste, Series A, AMT,    
5.20%, 12/01/20 500 521,405
New York City Industrial Development Agency, RB, AMT:    
British Airways Plc Project, 7.63%, 12/01/32 1,000 1,027,790
Continental Airlines, Inc. Project, 8.38%, 11/01/16 1,000 1,010,240
New York City Industrial Development Agency, Refunding    
RB, Terminal One Group Association Project, AMT (a):    
5.50%, 1/01/18 1,000 1,097,640
5.50%, 1/01/24 1,000 1,056,910
New York State Energy Research & Development Authority,    
Refunding RB:    
Brooklyn Union Gas/Keyspan, Series A, AMT (FGIC),    
4.70%, 2/01/24 500 529,115
Rochester Gas & Electric Corp., Series C (NPFGC),    
5.00%, 8/01/32 (a) 1,000 1,104,270
    7,379,780
County/City/Special District/School District — 19.0%    
Amherst Development Corp., RB, University at Buffalo    
Foundation Faculty-Student Housing Corp., Series A    
(AGM), 4.00%, 10/01/24 1,000 1,078,690
City of New York New York, GO:    
Refunding, Series A, 5.00%, 8/01/24 250 287,300
Refunding, Series E, 5.00%, 8/01/27 600 705,588
Sub-Series G-1, 5.00%, 4/01/28 850 1,020,935
Sub-Series I-1, 5.13%, 4/01/25 750 892,125
Hudson New York Yards Infrastructure Corp., RB, Series A,    
5.75%, 2/15/47 1,000 1,172,070
New York City Industrial Development Agency, RB, Queens    
Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/31 1,500 1,532,085
New York City Industrial Development Agency,    
Refunding RB, Terminal One Group Association Project,    
AMT, 5.50%, 1/01/21 (a) 250 268,715
New York City Transitional Finance Authority, RB:    
Fiscal 2007, Series S-1 (FGIC), 5.00%, 7/15/24 500 565,640
Fiscal 2009, Series S-3, 5.00%, 1/15/23 575 687,706
Series S-1, 4.00%, 7/15/42 500 507,800
New York Convention Center Development Corp., RB,    
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35 120 125,730
New York Liberty Development Corp., Refunding RB:    
5.00%, 11/15/31 1,000 1,145,340
Second Priority, Bank of America Tower at One Bryant    
Park Project, 5.63%, 7/15/47 1,000 1,120,950
  Par  
Municipal Bonds (000) Value
 
New York (continued)    
County/City/Special District/School District (concluded)    
United Nations Development Corp. New York,    
Refunding RB, Series A, 4.25%, 7/01/24 $    1,500 $ 1,652,235
    12,762,909
Education — 15.4%    
Nassau County Industrial Development Agency,    
Refunding RB, New York Institute of Technology Project,    
Series A, 5.00%, 3/01/21 1,000 1,147,800
New York State Dormitory Authority, RB:    
Convent of the Sacred Heart (AGM),    
4.00%, 11/01/18 880 977,161
Convent of the Sacred Heart (AGM),    
5.00%, 11/01/21 120 140,845
Fordham University, Series A, 5.25%, 7/01/25 500 599,550
Haverstraw King’s Daughters Public Library,    
5.00%, 7/01/26 1,015 1,196,675
Mount Sinai School of Medicine, 5.50%, 7/01/25 1,000 1,158,470
Mount Sinai School of Medicine, Series A (NPFGC),    
5.15%, 7/01/24 570 669,043
New York State Dormitory Authority, Refunding RB, NYU,    
Series A, 5.00%, 7/01/37 600 700,014
Schenectady County Capital Resource Corp, Refunding RB    
Union College:    
5.00%, 7/01/32 940 1,094,066
4.25%, 7/01/33 845 900,610
Schenectady County Industrial Development Agency,    
Refunding RB, Union College Project, 5.00%, 7/01/26 1,000 1,128,160
Suffolk County Industrial Development Agency,    
Refunding RB, New York Institute of Technology Project,    
5.25%, 3/01/21 600 634,098
         10,346,492
Health — 20.9%    
Dutchess County Industrial Development Agency, RB,    
Vassar Brothers Medical Center (AGC),    
5.00%, 4/01/21 215 253,919
Dutchess County Local Development Corp., Refunding RB,    
Health Quest System, Inc., Series A (AGM),    
5.25%, 7/01/25 1,000 1,151,400
Erie County Industrial Development Agency, RB, Episcopal    
Church Home, Series A, 5.88%, 2/01/18 725 726,153
Genesee County Industrial Development Agency New York,    
Refunding RB, United Memorial Medical Center Project,    
4.75%, 12/01/14 215 215,813
New York City Industrial Development Agency, RB, PSCH,    
Inc. Project, 6.20%, 7/01/20 1,415 1,420,830
New York State Dormitory Authority, RB:    
New York State Association for Retarded Children,    
Inc., Series A, 5.30%, 7/01/23 450 517,234

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:  

 

AGC Assured Guaranty Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
BHAC Berkshire Hathaway Assurance Corp.
CAB Capital Appreciation Bonds
CIFG CDC IXIS Financial Guaranty
COP Certificates of Participation
EDA Economic Development Authority
EDC Economic Development Corp.
ERB Education Revenue Bonds
FGIC Financial Guaranty Insurance Co.
Freddie Mac Federal Home Loan Mortgage Corporation
Ginnie Mae Government National Mortgage Association
GO General Obligation Bonds
HFA Housing Finance Agency
HRB Housing Revenue Bonds
IDA Industrial Development Authority
IDB Industrial Development Board
IDRB Industrial Development Revenue Bond
ISD Independent School District
LRB Lease Revenue Bonds
MBIA MBIA Insurance Corp.
M/F Multi-Family
NPFGC National Public Finance Guarantee Corp.
PILOT Payment in Lieu of Taxes
Radian Radian Financial Guaranty
RB Revenue Bonds
SONYMA State of New York Mortgage Agency
S/F Single-Family
Syncora Syncora Guarantee

 

See Notes to Financial Statements.

12ANNUAL REPORTJULY 31, 2012
 
Schedule of Investments (continued) BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)

 

  Par  
Municipal Bonds (000) Value
 
New York (continued)
Health (concluded)    
New York State Dormitory Authority, RB: (concluded)    
North Shore-Long Island Jewish Health System,    
Series A, 5.25%, 5/01/25 $       780 $ 810,124
North Shore-Long Island Jewish Health System,    
Series D, 5.00%, 5/01/39 160 174,422
NYU Hospitals Center, Series A, 5.00%, 7/01/22 1,000 1,145,670
NYU Hospitals Center, Series B, 5.25%, 7/01/24 405 444,415
New York State Dormitory Authority, Refunding RB:    
Mount Sinai Hospital, Series A, 4.25%, 7/01/23 250 271,045
North Shore-Long Island Jewish Health System,    
Series A, 5.00%, 5/01/32 500 559,680
North Shore-Long Island Jewish Health System,    
Series E, 5.00%, 5/01/22 650 746,590
Teachers College, Series A, 5.00%, 7/01/31 375 437,160
Saratoga County Industrial Development Agency New York,    
Refunding RB, The Saratoga Hospital Project, Series A    
(Radian), 4.38%, 12/01/13 365 378,666
Suffolk County Industrial Development Agency New York,    
Refunding RB, Jeffersons Ferry Project,    
4.63%,11/01/16 800 854,776
Westchester County Healthcare Corp. New York,    
Refunding RB, Senior Lien:    
5.00%, 11/01/30 250 275,247
Series B, 6.00%, 11/01/30 240 285,499
Westchester County Industrial Development Agency    
New York, RB:    
Kendal on Hudson Project, Series A, 6.38%, 1/01/24 1,000 1,006,270
Special Needs Facilities Pooled Program, Series D-1,    
6.80%, 7/01/19 515 523,868
Westchester County New York Health Care Corp.,    
Refunding RB, Senior Lien, Series A, 5.00%, 11/01/24 910 1,027,536
Yonkers Industrial Development Agency New York, RB,    
Sacred Heart Associations Project, Series A, AMT    
(SONYMA), 4.80%, 10/01/26 750 794,925
    14,021,242
Housing — 8.8%    
New York City Housing Development Corp., RB,    
Series H-2-A, AMT, 5.00%, 11/01/30 780 813,197
New York Mortgage Agency, Refunding RB, AMT:    
Homeowner Mortgage, Series 130, 4.75%, 10/01/30 2,500 2,553,825
Series 133, 4.95%, 10/01/21 395 413,292
Series 143, 4.85%, 10/01/27 500 519,675
Yonkers EDC, Refunding RB, Riverview II (Freddie Mac),    
4.50%, 5/01/25 1,500 1,631,010
    5,930,999
State — 18.1%    
Buffalo & Erie County Industrial Land Development Corp.,    
RB, Buffalo State College Foundation Housing,    
6.00%, 10/01/31 1,000 1,220,580
Metropolitan Transportation Authority, Refunding RB,    
Series D, 4.00%, 11/15/32 (b) 1,000 1,031,490
New York State Dormitory Authority, ERB, Series F,    
5.00%, 3/15/30 1,290 1,400,850
New York State Dormitory Authority, LRB, Municipal Health    
Facilities, Sub- Series 2-4, 5.00%, 1/15/27 600 667,632
New York State Dormitory Authority, RB:    
Education, Series D, 5.00%, 3/15/31 500 564,770
School Districts Financing Program, Series C,    
5.00%, 10/01/26 2,360 2,832,024
New York State Dormitory Authority, Refunding RB:    
Department of Health, Series A (CIFG),    
5.00%, 7/01/25 1,500 1,646,100
Saint John’s University, Series A, 5.00%, 7/01/27 (b) 220 260,187

 

Municipal Bonds Par
(000)
Value
 
New York (concluded)    
State (concluded)    
New York State Thruway Authority, Refunding RB,    
Series A-1, 5.00%, 4/01/22 $ 1,000 $ 1,195,160
New York State Urban Development Corp., RB, State    
Personal Income Tax:    
Series A, 3.50%, 3/15/28 750 792,307
State Facilities, Series A-1 (NPFGC), 5.00%, 3/15/24 485 522,141
    12,133,241
Tobacco — 1.5%    
Tobacco Settlement Financing Corp. New York, RB,    
Asset-Backed Series B-1C, 5.50%, 6/01/22 1,000 1,042,220
Transportation — 16.5%    
Metropolitan Transportation Authority, RB:    
Series A (NPFGC), 5.00%, 11/15/24 2,000 2,302,620
Series B (NPFGC), 5.25%, 11/15/19 860 1,055,478
Series E, 5.00%, 11/15/42 85 95,541
Sub-Series B-1, 5.00%, 11/15/24 460 566,573
Sub-Series B-4, 5.00%, 11/15/24 300 369,504
Transportation, Series A, 5.00%, 11/15/27 1,000 1,168,110
Metropolitan Transportation Authority, Refunding RB,    
Series B, 5.25%, 11/15/25 750 894,660
New York State Thruway Authority, RB, Series I,    
5.00%, 1/01/37 370 418,947
Port Authority of New York & New Jersey, RB:    
Consolidated 152nd, Series, AMT, 5.00%, 11/01/24 1,000 1,120,450
JFK International Air Terminal, 5.00%, 12/01/20 1,000 1,107,180
Port Authority of New York & New Jersey, Refunding RB,    
AMT:    
152nd Series, 5.00%, 11/01/23 500 568,895
Consolidated, 138th Series, 4.75%, 12/01/30 205 214,551
Triborough Bridge & Tunnel Authority, RB, Series A,    
5.00%, 1/01/27 1,000 1,199,300
    11,081,809
Utilities — 13.2%    
Long Island Power Authority, RB, General, Series A,    
5.00%, 5/01/36 250 280,243
Long Island Power Authority, Refunding RB:    
Series A, 5.50%, 4/01/24 875 1,054,917
Series D (NPFGC), 5.00%, 9/01/25 2,000 2,244,300
New York City Municipal Water Finance Authority,    
Refunding RB:    
Series DD, 5.00%, 6/15/32 500 574,040
Series EE, 5.00%, 6/15/34 3,000 3,509,280
New York State Environmental Facilities Corp.,    
Refunding RB, NYC Municipal Water, 5.00%, 6/15/31 1,000 1,189,910
    8,852,690
Total Municipal Bonds in New York   83,551,382
 
 
Puerto Rico — 8.8%    
Housing — 2.6%    
Puerto Rico Housing Finance Authority, Refunding RB,    
Subordinate, Capital Fund Modernization,    
5.13%, 12/01/27 1,570 1,740,235
State — 0.8%    
Puerto Rico Public Buildings Authority, Refunding RB,    
Government Facilities, Series M -3 (NPFGC),    
6.00%, 7/01/28 500 564,270
Transportation — 5.4%    
Puerto Rico Highway & Transportation Authority, RB,    
Series Y (AGM), 6.25%, 7/01/21 3,000 3,621,510
Total Municipal Bonds in Puerto Rico   5,926,015

See Notes to Financial Statements.

ANNUAL REPORTJULY 31, 201213
 

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

 

Municipal Bonds Par
(000)
Value
 
US Virgin Islands — 1.6%    
State — 1.6%    
Virgin Islands Public Finance Authority, RB, Senior Lien,    
Matching Fund Loan Note, Series A, 5.25%, 10/01/24 $    1,000 $ 1,054,790
Total Municipal Bonds in the US Virgin Islands   1,054,790
Total Municipal Bonds — 134.8%   90,532,187
 
 
Municipal Bonds Transferred to    
Tender Option Bond Trusts (c)    
 
New York — 18.6%    
County/City/Special District/School District — 6.9%    
City of New York New York, GO:    
Sub-Series B-1, 5.25%, 9/01/22 750 920,760
Sub-Series I-1, 5.50%, 4/01/21 1,499 1,888,018
New York State Urban Development Corp., Refunding RB,    
Service Contract, Series B, 5.00%, 1/01/21 1,499 1,790,773
    4,599,551
Transportation — 4.9%    
Port Authority of New York & New Jersey, RB,    
Consolidated, Series 169, AMT:    
5.00%, 10/15/21 2,000 2,434,700
5.00%, 10/15/26 750 873,780
    3,308,480
Utilities — 6.8%    
New York City Municipal Water Finance Authority,    
Refunding RB:    
Second General Resolution, Series HH,    
   5.00%, 6/15/32 1,560 1,819,912
Series A, 4.75%, 6/15/30 1,500 1,680,930
Suffolk County Water Authority, Refunding RB,    
3.00%, 6/01/25 1,006 1,048,869
    4,549,711
Total Municipal Bonds Transferred to    
Tender Option Bond Trusts — 18.6%   12,457,742
Total Long-Term Investments    
(Cost — $94,287,272) — 153.4%   102,989,929
 
 
 
Short-Term Securities Shares  
BIF New York Municipal Money Fund, 0.00% (d)(e) 480,082 480,082
Total Short-Term Securities    
(Cost — $480,082) — 0.7%   480,082
Total Investments (Cost — $94,767,354) — 154.1%   103,470,011
Liabilities in Excess of Other Assets — (0.8)%   (500,272)
Liability for TOB Trust Certificates, Including Interest    
Expense and Fees Payable — (9.2)%   (6,210,979)
VRDP Shares, at Liquidation Value — (44.1)%   (29,600,000)
Net Assets Applicable to Common Shares — 100.0%   $ 67,158,760

 

(a) Variable rate security. Rate shown is as of report date.
(b)When-issued security. Unsettled when-issued transactions were as follows:
Counterparty Value Unrealized
Appreciation
First Southwest Co. $1,031,490 $24,850
Morgan Stanley & Co. $  260,187 $ 2,768

 

(c)Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(d)Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliate Shares Held
at July 31,
2011
Net
Activity
Shares Held
at July 31,
2012
Income
BIF New York Municipal        
Money Fund 760,684 (280,602) 480,082 $4

 

(e)Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1 $102,989,929 $102,989,929
Short-Term        
Securities $480,082 480,082
Total $480,082 $102,989,929 $103,470,011

 

1See above Schedule of Investments for values in each sector or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Liabilities:        
TOB trust        
certificates $  (6,208,399) $   (6,208,399)
VRDP Shares (29,600,000) (29,600,000)
Total $(35,808,399) $ (35,808,399)

 

There were no transfers between levels during the year ended July 31, 2012.

See Notes to Financial Statements.

14ANNUAL REPORTJULY 31, 2012
 

Schedule of Investments July 31, 2012 BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)
Value
 
Arizona — 132.5%    
Corporate — 9.3%    
Maricopa County Pollution Control Corp., Refunding RB,    
Southern California Edison Co., Series A,    
5.00%, 6/01/35 $   4,350 $ 4,812,318
Pima County IDA, Tucson Electric    
Power, RB, Series A, 5.25%, 10/01/40 1,000 1,062,160
Pima County IDA, Tucson Electric    
Power, Refunding IDRB, 5.75%, 9/01/29 500 531,715
    6,406,193
County/City/Special District/School District — 41.8%    
City of Glendale Arizona, RB (NPFGC), 5.00%, 7/01/25 1,000 1,142,460
City of Tucson Arizona, COP (AGC), 5.00%, 7/01/29 1,000 1,124,060
County of Pinal Arizona, COP:    
5.00%, 12/01/26 1,250 1,318,087
5.00%, 12/01/29 1,250 1,310,200
Gilbert Public Facilities Municipal Property Corp. Arizona,    
RB, 5.50%, 7/01/27 2,000 2,319,640
Gladden Farms Community Facilities District, GO,    
5.50%, 7/15/31 750 770,048
Greater Arizona Development Authority, RB, Santa Cruz    
County Jail, Series 2, 5.25%, 8/01/31 1,155 1,262,230
Marana Municipal Property Corp., RB, Series A,    
5.00%, 7/01/28 2,500 2,739,350
Maricopa County Community College District Arizona, GO,    
Series C, 3.00%, 7/01/22 1,000 1,057,980
Maricopa County Public Finance Corp., RB, Series A    
(AMBAC), 5.00%, 7/01/24 1,000 1,130,890
Maricopa County Unified School District No. 89-Dysart    
Arizona, GO, School Improvement Project of 2006,    
Series C, 6.00%, 7/01/28 1,000 1,167,400
Mohave County Unified School District No. 20 Kingman,    
GO, School Improvement Project of 2006,    
Series C (AGC), 5.00%, 7/01/26 1,000 1,207,120
Phoenix Civic Improvement Corp., RB, Subordinate, Civic    
Plaza Expansion Project, Series A (NPFGC),    
5.00%, 7/01/35 3,325 3,615,073
Phoenix Mesa Airport Authority, RB, Mesa Project, AMT,    
5.00%, 7/01/38 3,600 3,774,888
Scottsdale Municipal Property Corp. Arizona, RB, Water &    
Sewer Development Project, Series A, 5.00%, 7/01/24 1,500 1,768,230
Vistancia Community Facilities District Arizona, GO:    
6.75%, 7/15/22 1,275 1,278,672
5.75%, 7/15/24 750 799,800
Yuma County Library District, GO (Syncora),    
5.00%, 7/01/26 1,000 1,097,720
    28,883,848
Education — 14.6%    
Arizona Board of Regents, Refunding, COP, University of    
Arizona, Series C, 5.00%, 6/01/31 2,000 2,272,640
Arizona State University, RB, Series 2008-C:    
6.00%, 7/01/25 970 1,164,485
6.00%, 7/01/26 745 891,415
6.00%, 7/01/27 425 506,587
6.00%, 7/01/28 400 475,336
Maricopa County IDA Arizona, RB, Arizona Charter Schools    
Project, Series A, 6.63%, 7/01/20 700 567,833
Phoenix IDA Arizona, Education Revenue, RB, Great Hearts    
Academies Project, 6.30%, 7/01/42 500 532,795
Pima County IDA, RB, Arizona Charter Schools Project:    
Series A, 6.75%, 7/01/21 395 396,742
Series C, 6.70%, 7/01/21 700 702,800
Series C, 6.75%, 7/01/31 980 982,675
Pima County IDA, Refunding RB, Arizona Charter Schools    
Project, Series O, 5.00%, 7/01/26 995 909,858

 

Municipal Bonds Par
(000)
Value
 
Arizona (continued)    
Education (concluded)    
University of Arizona, COP, University of Arizona Projects,    
Series B (AMBAC), 5.00%, 6/01/28 (a) $       650 $ 675,740
    10,078,906
Health — 19.2%    
Arizona Health Facilities Authority, RB, Catholic Healthcare    
West, Series B-2, 5.00%, 3/01/41 500 541,675
Arizona Health Facilities Authority, Refunding RB, Banner    
Health, Series D:    
6.00%, 1/01/30 1,500 1,529,235
5.50%, 1/01/38 2,300 2,559,900
Maricopa County IDA, RB, Catholic Healthcare West,    
Series A, 6.00%, 7/01/39 170 195,004
Maricopa County IDA Arizona, Refunding RB:    
Catholic Healthcare West, Series A, 5.50%, 7/01/26 1,850 1,939,891
Samaritan Health Services, Series A (NPFGC),    
7.00%, 12/01/16 (b) 1,000 1,172,270
Tempe IDA, Refunding RB, Friendship Village of Tempe,    
Series A, 6.25%, 12/01/42 500 538,200
University Medical Center Corp. Arizona, RB,    
6.50%, 7/01/39 500 579,440
University Medical Center Corp. Arizona, Refunding RB,    
6.00%, 7/01/39 1,000 1,141,470
Yavapai County IDA Arizona, RB, Yavapai Regional Medical    
Center, Series A, 6.00%, 8/01/33 1,800 1,880,712
Yavapai County IDA Arizona, Refunding RB, Northern    
Arizona Healthcare System, 5.25%, 10/01/26 1,000 1,181,750
    13,259,547
Housing — 2.2%    
Maricopa County & Phoenix IDA, Refunding RB, AMT    
(Ginnie Mae), S/F:    
Series A-1, 5.75%, 5/01/40 175 189,250
Series A-2, 5.80%, 7/01/40 205 211,228
Maricopa County IDA Arizona, RB, Series 3-B, AMT (Ginnie    
Mae), 5.25%, 8/01/38 368 392,984
Phoenix & Pima County IDA, RB, Series 1A, AMT (Ginnie    
Mae), 5.65%, 7/01/39 141 149,556
Phoenix & Pima County IDA, Refunding RB,    
Series 2007-1, AMT (Ginnie Mae), 5.25%, 8/01/38 211 220,759
Phoenix IDA Arizona, Refunding RB, Series 2007-2, AMT    
(Ginnie Mae), 5.50%, 8/01/38 321 339,387
    1,503,164
State — 23.6%    
Arizona School Facilities Board, COP:    
5.13%, 9/01/21 1,000 1,144,050
5.75%, 9/01/22 2,000 2,347,040
Arizona Sports & Tourism Authority, Refunding RB,    
Multipurpose Stadium Facility Project, Series A,    
5.00%, 7/01/36 3,000 3,297,660
Arizona State Transportation Board, RB, Series B,    
5.00%, 7/01/30 4,000 4,544,400
Greater Arizona Development Authority, RB, Series B    
(NPFGC):    
5.00%, 8/01/30 1,600 1,735,200
5.00%, 8/01/35 1,000 1,080,190
State of Arizona, RB, Series A (AGM), 5.00%, 7/01/29 1,930 2,187,655
    16,336,195
Transportation — 6.4%    
Phoenix Civic Improvement Corp., Refunding RB, Junior    
Lien, Series A, 5.00%, 7/01/40 1,000 1,102,910

See Notes to Financial Statements. 

ANNUAL REPORTJULY 31, 201215
 

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

 

Municipal Bonds Par
(000)
Value
 
Arizona (concluded)    
Transportation (concluded)    
Phoenix Civic Improvement Corp., RB, Senior Lien:    
Series A, 5.00%, 7/01/33 $   1,000 $ 1,094,610
Series B, AMT (NPFGC), 5.75%, 7/01/17 1,000 1,003,390
Series B, AMT (NPFGC), 5.25%, 7/01/27 450 450,666
Series B, AMT (NPFGC), 5.25%, 7/01/32 755 755,899
    4,407,475
Utilities — 15.4%    
Gilbert Water Resource Municipal Property Corp., RB,    
Subordinate Lien (NPFGC), 5.00%, 10/01/29 900 977,886
Phoenix Civic Improvement Corp., Refunding RB, Senior    
Lien, 5.50%, 7/01/22 2,000 2,434,840
Pima County Arizona, RB, Series B, 5.00%, 7/01/26 1,000 1,171,220
Pinal County Electric District No. 3, RB,    
Refunding, 5.25%, 7/01/36 2,500 2,773,900
Pinal County IDA Arizona, RB, San Manuel Facility Project,    
AMT, 6.25%, 6/01/26 500 499,535
Salt River Project Agricultural Improvement & Power    
District, RB, Series A, 5.00%, 1/01/24 1,000 1,178,000
Salt River Project Agricultural Improvement & Power    
District, Refunding RB, Series A, 5.00%, 1/01/35 1,500 1,646,835
    10,682,216
Total Municipal Bonds in Arizona   91,557,544
 
 
Guam — 1.5%    
State — 1.5%    
Government of Guam Business Privilege Tax Revenue, RB,    
Series A, 5.13%, 1/01/42 800 887,912
Territory of Guam, RB, Series B-1, 5.00%, 1/01/37 145 159,990
Total Municipal Bonds in Guam   1,047,902
 
 
Puerto Rico — 10.8%    
State — 7.5%    
Puerto Rico Public Buildings Authority, Refunding RB,    
Government Facilities, Series M-3 (NPFGC),    
6.00%, 7/01/28 700 789,978
Puerto Rico Sales Tax Financing Corp., RB, First    
Sub-Series A, 6.38%, 8/01/39 1,500 1,776,945
Puerto Rico Sales Tax Financing Corp., Refunding RB:    
CAB, Series A (NPFGC), 5.55%, 8/01/41 (c) 9,530 1,947,551
First Sub, Series C, 6.00%, 8/01/39 600 688,098
    5,202,572
Transportation — 0.1%    
Puerto Rico Highway & Transportation Authority,    
Refunding RB, Series AA (NPFGC), 5.50%, 7/01/18 50 57,034
Utilities — 3.2%    
Puerto Rico Electric Power Authority, RB, Series WW:    
5.38%, 7/01/24 1,000 1,119,510
5.50%, 7/01/38 1,000 1,062,060
    2,181,570
Total Municipal Bonds in Puerto Rico   7,441,176
Total Municipal Bonds — 144.8%   100,046,622

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
Par
(000)
Value
 
Arizona — 11.1%    
Utilities — 11.1%    
City of Mesa Arizona, RB, 5.00%, 7/01/35 $    3,000 $ 3,428,460
Phoenix Arizona Civic Improvement Corp., RB,    
5.00%, 7/01/34 3,000 3,487,980
Salt River Project Agricultural Improvement & Power    
District, RB, 5.00%, 1/01/38 660 733,544
Total Municipal Bonds Transferred to    
Tender Option Bond Trusts — 11.1%   7,649,984
Total Long-Term Investments    
(Cost — $98,971,153) — 155.9%   107,696,606
 
 
 
Short-Term Securities Shares  
FFI Institutional Tax-Exempt Fund, 0.01% (e)(f) 1,351,621 1,351,621
Total Short-Term Securities    
(Cost — $1,351,621) — 2.0%   1,351,621
Total Investments (Cost — $100,322,774) — 157.9%   109,048,227
Other Assets Less Liabilities — 0.9%   653,181
Liability for TOB Trust Certificates, Including Interest    
Expense and Fees Payable — (4.8)%   (3,330,448)
VRDP Shares, at Liquidation Value — (54.0)%   (37,300,000)
Net Assets Applicable to Common Shares — 100.0%   $   69,070,960

 

(a) US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)Security is collateralized by Municipal or US Treasury obligations.
(c)Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliate Shares Held
at July 31,
2011
Net
Activity
Shares Held
at July 31,
2012
Income
BIF Arizona Municipal        
Money Fund 2,960,530 (2,960,530)
FFI Institutional        
Tax-Exempt Fund 1,351,621 1,351,621

 

(f)   

Represents the current yield as of report date.

•   

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

See Notes to Financial Statements. 

16ANNUAL REPORTJULY 31, 2012
 

Schedule of Investments (concluded) BlackRock MuniYield Arizona Fund, Inc. (MZA)
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1 $107,696,606 $ 107,696,606
Short-Term        
Securities $1,351,621 1,351,621
Total $1,351,621 $107,696,606 $ 109,048,227
1See above Schedule of Investments for values in each sector or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

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

 

There were no transfers between levels during the year ended July 31, 2012.

See Notes to Financial Statements. 

ANNUAL REPORTJULY 31, 201217
 

Schedule of Investments July 31, 2012 BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)
Value
 
California — 92.1%    
Corporate — 0.3%    
City of Chula Vista California, Refunding RB, San Diego    
Gas & Electric, Series A, 5.88%, 2/15/34 $       975 $ 1,150,939
County/City/Special District/School District — 35.3%    
California State Public Works Board, RB, Various Capital    
Projects, Sub-Series I-1, 6.63%, 11/01/34 5,525 6,812,877
Campbell Union High School District, GO, Election of    
2006, Series C, 5.75%, 8/01/40 4,000 4,780,360
City of Los Angeles California, COP, Senior, Sonnenblick    
Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31 2,000 2,007,700
City of San Jose California, RB, Convention Center    
Expansion & Renovation Project:    
6.50%, 5/01/36 1,520 1,771,241
6.50%, 5/01/42 1,860 2,165,505
Contra Costa Community College District, GO,    
Election 2002 (AGM), 5.00%, 8/01/30 10,215 10,911,152
Desert Community College District, GO, CAB, Election    
of 2004, Series C (AGM), 5.48%, 8/01/46 (a) 5,000 794,550
El Monte Union High School District California, GO,    
Election of 2002, Series C (AGM), 5.25%, 6/01/32 9,620 10,874,448
Grossmont Healthcare District, GO, Election of 2006,    
Series B, 6.13%, 7/15/40 2,000 2,454,460
Los Angeles Community College District California, GO,    
Election of 2008, Series C, 5.25%, 8/01/39 7,005 8,167,410
Los Angeles Municipal Improvement Corp., RB, Real    
Property, Series E:    
5.75%, 9/01/34 1,175 1,341,921
6.00%, 9/01/34 2,380 2,760,062
Los Rios Community College District, Election of 2002,    
GO, Series D, 5.38%, 8/01/34 4,125 4,722,630
Oak Grove School District California, GO, Election of 2008,    
Series A, 5.50%, 8/01/33 4,000 4,679,440
Ohlone Community College District, GO, Election of 2010,    
Series A, 5.25%, 8/01/41 7,135 8,252,840
Orange County Sanitation District, COP (NPFGC),    
5.00%, 2/01/33 (b) 9,350 9,793,003
Pico Rivera Public Financing Authority, RB,    
5.75%, 9/01/39 6,025 6,796,260
San Diego Regional Building Authority California, RB,    
County Operations Center & Annex, Series A,    
5.38%, 2/01/36 5,100 5,749,536
Santa Ana Unified School District, GO, Election of 2008,    
Series A, 5.13%, 8/01/33 6,020 6,654,990
Santa Clara County Financing Authority, Refunding LRB,    
Series L, 5.25%, 5/15/36 15,970 17,784,990
Westminster Redevelopment Agency California, Tax    
Allocation Bonds, Subordinate, Commercial    
Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 1,250 1,518,950
William S. Hart Union High School District, GO, CAB (a):    
Refunding, Series B (AGM), 4.99%, 8/01/34 10,850 3,668,711
Series B (AGM), 5.02%, 8/01/35 9,700 3,101,187
    127,564,223
Education — 4.7%    
California Educational Facilities Authority, RB, University    
Southern California, Series B, 5.00%, 10/01/38 3,000 3,483,780
California Educational Facilities Authority, Refunding RB:    
Pitzer College, 6.00%, 4/01/40 2,500 2,950,100
San Francisco University, 6.13%, 10/01/36 1,430 1,750,020
California Municipal Finance Authority, RB, Emerson    
College, 6.00%, 1/01/42 2,500 2,949,250
University of California, Refunding RB Limited Project,    
Series G, 5.00%, 5/15/37 (c) 5,155 5,957,427
    17,090,577

Municipal Bonds Par
(000)
Value
 
California — (continued)    
Health — 18.7%    
ABAG Finance Authority for Nonprofit Corps,    
Refunding RB, Sharp Healthcare:    
6.38%, 8/01/34 $   2,000 $ 2,132,100
Series A, 6.00%, 8/01/30 2,270 2,795,596
California Health Facilities Financing Authority, RB:    
Children’s Hospital, Series A, 5.25%, 11/01/41 5,000 5,531,900
Stanford Hospital and Clinics, Series A, 5.00%,    
8/15/51 4,875 5,346,607
Sutter Health, Series B, 6.00%, 8/15/42 7,530 9,043,530
California Health Facilities Financing Authority,    
Refunding RB:    
Catholic Healthcare West, Series A, 6.00%, 7/01/39 10,000 11,799,400
Providence Health, 6.50%, 10/01/38 3,625 4,322,994
St. Joseph Health System, Series A, 5.50%, 7/01/29 2,100 2,452,800
California Statewide Communities Development    
Authority, RB:    
Health Facility, Memorial Health Services, Series A,    
6.00%, 10/01/23 (b) 3,270 3,396,745
Kaiser Permanente, Series A, 5.00%, 4/01/42 10,000 10,945,800
Sutter Health, Series A, 6.00%, 8/15/42 7,995 9,601,995
    67,369,467
Housing — 1.0%    
California Rural Home Mortgage Finance Authority,    
RB, AMT:    
Mortgage-Backed Securities Program, Series B    
(Ginnie Mae), 6.15%, 6/01/20 5 5,056
Sub-Series FH-1, 5.50%, 8/01/47 265 128,316
Santa Clara County Housing Authority California, RB,    
John Burns Gardens Apartments Project, Series A, AMT,    
6.00%, 8/01/41 3,500 3,517,430
    3,650,802
State — 13.5%    
California State Public Works Board, RB:    
Department of Developmental Services, Porterville,    
Series C, 6.25%, 4/01/34 1,385 1,647,707
Department of Education, Riverside Campus Project,    
Series B, 6.50%, 4/01/34 10,000 12,086,600
Trustees of the California State University, Series D,    
6.00%, 4/01/27 215 254,556
Various Capital Projects, Sub-Series I-1,    
6.38%, 11/01/34 4,400 5,344,900
State of California, GO, Various Purpose:    
6.00%, 4/01/38 20,000 23,613,200
6.00%, 11/01/39 4,835 5,773,570
    48,720,533
Transportation — 8.2%    
City of San Jose California, RB, Series A-1, AMT (AGM):    
5.50%, 3/01/30 1,000 1,138,400
5.75%, 3/01/34 1,000 1,146,380
City of San Jose California, Refunding RB, Series A-1,    
AMT, 6.25%, 3/01/34 1,400 1,660,442
County of Orange California, RB, Series B, 5.75%,    
7/01/34 3,000 3,389,070
County of Sacramento California, RB:    
Airport System Subordinate, PFC/Grant, Series D,    
6.00%, 7/01/35 3,000 3,468,660
Senior Series B, 5.75%, 7/01/39 900 1,025,910
Los Angeles Department of Airports, RB, Series A,    
5.25%, 5/15/39 2,775 3,126,731
San Francisco City & County Airports Commission, RB,    
Series E, 6.00%, 5/01/39 5,065 5,990,376

See Notes to Financial Statements. 

18ANNUAL REPORTJULY 31, 2012
 

Schedule of Investments (continued) BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)
Value
 
California — (continued)    
Transportation — (concluded)    
San Francisco Port Commission California, RB, Series A,    
5.13%, 3/01/40 $   5,010 $ 5,502,483
San Joaquin County Transportation Authority,    
Refunding RB, Limited Tax, Measure K, Series A,    
6.00%, 3/01/36 2,400 2,939,184
    29,387,636
Utilities — 10.4%    
City of Chula Vista California, Refunding RB, San Diego    
Gas & Electric, Series D, 5.88%, 1/01/34 4,000 4,694,760
City of Los Angeles California, Refunding RB,    
Sub-Series A, 5.00%, 6/01/32 3,000 3,452,130
City of Petaluma California, Refunding RB, 6.00%,    
5/01/36 2,645 3,233,301
Dublin-San Ramon Services District, Refunding RB,    
6.00%, 8/01/41 2,420 2,946,955
Eastern Municipal Water District California, COP, Series H,    
5.00%, 7/01/35 8,400 9,218,412
Los Angeles Department of Water & Power, RB, Series B,    
5.00%, 7/01/43 (c) 2,000 2,318,540
Los Angeles Department of Water & Power, Refunding RB,    
System, Series A, 5.25%, 7/01/39 4,000 4,681,160
San Diego Public Facilities Financing Authority,    
Refunding RB, Senior Series A, 5.38%, 5/15/34 3,910 4,533,645
San Francisco City & County Public Utilities Commission,    
Refunding RB, Series A, 5.13%, 11/01/39 2,295 2,600,143
    37,679,046
Total Municipal Bonds — 92.1%   332,613,223
 
 
Municipal Bonds Transferred to    
Tender Option Bond Trusts (d)    
 
California — 68.6%    
County/City/Special District/School District — 30.9%    
City of Los Angeles California, Refunding RB, Series A,    
5.00%, 6/01/39 9,870 11,016,401
El Dorado Union High School District, GO, Election of    
2008, 5.00%, 8/01/35 5,000 5,608,300
Fremont Unified School District Alameda County    
California, GO, Election of 2002, Series B (AGM),    
5.00%, 8/01/30 4,003 4,431,372
Los Angeles Community College District California, GO:    
Election of 2001, Series E-1, 5.00%, 8/01/33 14,850 16,774,114
Election of 2003, Series E (AGM), 5.00%, 8/01/31 10,002 11,145,787
Election of 2008, Series C, 5.25%, 8/01/39 9,680 11,286,541
Series A, 6.00%, 8/01/33 3,828 4,661,901
San Diego Community College District California, GO,    
Election of 2002, 5.25%, 8/01/33 7,732 9,068,601
San Francisco Bay Area Rapid Transit District,    
Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 6,000 6,597,000
San Francisco Bay Area Transit Financing Authority,    
Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 5,439 5,979,640
San Marcos Unified School District, GO, Election of 2010    
Series A, 5.00%, 8/01/38 15,520 17,354,930
Sonoma County Junior College District, GO, Election    
of 2002, Series B (AGM), 5.00%, 8/01/28 6,875 7,562,891
    111,487,478

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
Par
(000)
Value
 
California — (concluded)    
Education — 14.7%    
California Educational Facilities Authority, RB, University    
of Southern California, Series A, 5.25%, 10/01/39 $13,845 $ 16,206,265
Peralta Community College District, GO, Election of 2000,    
Series D (AGM), 5.00%, 8/01/30 1,995 2,107,757
University of California, RB:    
Limited Project, Series B (AGM), 5.00%, 5/15/33 8,488 8,891,632
Series L, 5.00%, 5/15/36 8,500 9,594,545
Series L, 5.00%, 5/15/40 11,597 13,007,039
Series O, 5.75%, 5/15/34 2,805 3,372,910
    53,180,148
Health — 3.1%    
California Health Facilities Financing Authority, RB, Sutter    
Health, Series A (MBIA) (BHAC), 5.00%, 11/15/42 10,002 11,180,745
Transportation — 1.5%    
City of Los Angeles Calfornia Department of Airports,    
Refunding RB, Los Angeles International Airport, Senior,    
Series A, 5.00%, 5/15/40 4,999 5,611,360
Utilities — 18.4%    
Eastern Municipal Water District, COP, Series H,    
5.00%, 7/01/33 4,748 5,245,781
Los Angeles Department of Water & Power, RB,    
Power System:    
Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 15,098 17,002,623
Sub-Series A-2 (AGM), 5.00%, 7/01/35 7,250 8,188,005
Metropolitan Water District of Southern California, RB:    
Series A, 5.00%, 7/01/37 20,000 22,792,600
Series C, 5.00%, 7/01/35 7,145 8,052,048
San Diego County Water Authority, COP, Series A (AGM),    
5.00%, 5/01/31 5,010 5,292,764
    66,573,821
Total Municipal Bonds Transferred to    
Tender Option Bond Trusts — 68.6%   248,033,552
Total Long-Term Investments    
(Cost — $523,386,968) — 160.7%   580,646,775
 
 
 
Short-Term Securities Shares  
BIF California Municipal Money Fund, 0.00% (e)(f) 3,043,312 3,043,312
Total Short-Term Securities    
(Cost — $3,043,312) — 0.8%   3,043,312
Total Investments (Cost — $526,430,280) — 161.5%   583,690,087
Other Assets Less Liabilities — 0.1%   469,346
Liability for TOB Trust Certificates, Including Interest    
Expense and Fees Payable — (32.3)%   (116,918,740)
VRDP Shares, at Liquidation Value — (29.3)%   (105,900,000)
Net Assets Applicable to Common Shares — 100.0%   $ 361,340,693

 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

See Notes to Financial Statements. 

ANNUAL REPORTJULY 31, 201219
 

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

(c)When-issued security. Unsettled when-issued transactions were as follows:
      Unrealized
      Appreciation/
Counterparty Value (Depreciation)
 
Wells Fargo Brokerage $ 2,318,540 $ 2,480  
Barclays Bank Plc $ 5,957,427 $ (12,527 )

 

(d)Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
  Shares Held   Shares Held  
  at July 31, Net at July 31,  
Affiliate 2011 Activity 2012 Income
 
BIF California Municipal        
Money Fund 5,041,430 (1,998,118) 3,043,312

 

(f)Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:              
Investments:              
Long-Term              
Investments1   $ 580,646,775 $ 580,646,775
Short-Term              
Securities $ 3,043,312     3,043,312
Total $ 3,043,312 $ 580,646,775 $ 583,690,087

 

1See above Schedule of Investments for values in each sector.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Liabilities:                
TOB trust                
   certificates $ (116,855,901 ) $ (116,855,901 )
VRDP Shares   (105,900,000 )   (105,900,000 )
Total $ (222,755,901 ) $ (222,755,901 )

 

There were no transfers between levels during the year ended July 31, 2012.

See Notes to Financial Statements.

20ANNUAL REPORTJULY 31, 2012
 
Schedule of Investments July 31, 2012 BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)

 

  Par  
Municipal Bonds (000) Value
Alabama — 0.7%    
Courtland IDB, Refunding RB, International Paper Co.    
Projects, Series A, AMT, 5.20%, 6/01/25 $   1,000 $ 1,033,410
Selma IDB, RB, International Paper Co. Project, Series A,    
5.38%, 12/01/35 545 593,772
    1,627,182
Alaska — 0.8%    
Alaska Municipal Bond Bank Authority, RB, Series 1,    
5.75%, 9/01/33 1,000 1,154,250
Northern Tobacco Securitization Corp., Refunding RB,    
Series A, 5.00%, 6/01/46 690 541,257
    1,695,507
Arizona — 0.8%    
Arizona Board of Regents, Refunding RB, Arizona State    
University System, Series A, 5.00%, 6/01/42 1,500 1,719,360
California — 11.5%    
California Educational Facilities Authority, RB, University of    
Southern California, Series A, 5.25%, 10/01/38 2,740 3,272,327
California Health Facilities Financing Authority, RB:    
Stanford Hospital and Clinics, Series A, 5.00%,    
  8/15/42 1,625 1,795,040
Sutter Health, Series B, 6.00%, 8/15/42 1,645 1,975,645
California Health Facilities Financing Authority,    
Refunding RB, Catholic Healthcare West, Series A,    
6.00%, 7/01/39 710 837,757
California Statewide Communities Development Authority,    
RB, Kaiser Permanente, Series A, 5.00%, 4/01/42 1,375 1,505,048
City of San Jose California Airport, Refunding RB,    
Series A-1, AMT, 5.50%, 3/01/30 1,500 1,691,085
Grossmont Union High School District, GO, Election of    
2008, Series B, 4.75%, 8/01/45 4,130 4,451,644
Los Angeles Department of Water & Power, RB, Power    
System, Sub-Series A-1, 5.25%, 7/01/38 3,600 4,197,276
San Diego Regional Building Authority California, RB,    
County Operations Center & Annex, Series A,    
5.38%, 2/01/36 1,310 1,476,842
State of California, GO, Various Purpose, 6.00%, 3/01/33 2,535 3,122,714
University of California, Refunding RB, Limited Project,    
Series G, 5.00%, 5/15/37 (a) 1,000 1,155,660
    25,481,038
District of Columbia — 1.0%    
District of Columbia Water & Sewer Authority,    
Refunding RB, Series A, 5.25%, 10/01/29 2,000 2,332,340
Florida — 6.1%    
County of Escambia Florida, Refunding RB, International    
Paper Corp. Projects, Series B, AMT, 5.00%, 8/01/26 600 601,464
County of Lee Florida, Refunding ARB, Series A, AMT,    
5.38%, 10/01/32 2,000 2,202,060
County of Miami-Dade Florida, RB, Miami International    
Airport, Series A, AMT (NPFGC), 6.00%, 10/01/29 3,275 3,289,345
Hillsborough County IDA, RB, National Gypsum Co., AMT:    
Series A, 7.13%, 4/01/30 2,500 2,501,650
Series B, 7.13%, 4/01/30 2,290 2,290,687
Manatee County Housing Finance Authority, RB, Series A,    
AMT (Ginnie Mae), 5.90%, 9/01/40 695 754,575
Orange County Health Facilities Authority, RB,    
The Nemours Foundation Project, Series A,    
5.00%, 1/01/29 1,610 1,802,620
    13,442,401
Georgia — 0.5%    
Municipal Electric Authority of Georgia, Refunding RB,    
Project One, Sub-Series D, 6.00%, 1/01/23 880 1,051,072

 

Municipal Bonds Par
(000)
Value
Illinois — 13.2%    
Chicago Board of Education Illinois, GO, Series A,    
5.50%, 12/01/39 $   1,815 $ 2,115,963
Chicago Park District, GO, Harbor Facilities, Series C,    
5.25%, 1/01/40 100 113,049
Chicago Transit Authority, RB, Sales Tax Receipts Revenue,    
5.25%, 12/01/36 615 702,668
City of Chicago Illinois, ARB, O’Hare International Airport,    
General Third Lien, Series C, 6.50%, 1/01/41 6,065 7,445,879
City of Chicago Illinois, Refunding RB, Sales Tax, Series A,    
5.25%, 1/01/38 765 878,205
Cook County Forest Preserve District, GO:    
Refunding, Ltd Tax Project, Series B,    
  5.00%, 12/15/32 265 302,203
Series C, 5.00%, 12/15/32 570 650,022
Illinois Finance Authority, RB, Carle Foundation, Series A,    
6.00%, 8/15/41 4,000 4,530,400
Illinois Finance Authority, Refunding RB:    
Central DuPage Health, Series B, 5.38%, 11/01/39 1,200 1,338,024
Northwestern Memorial Hospital, Series A,    
  6.00%, 8/15/39 4,160 4,891,703
Metropolitan Pier & Exposition Authority, Refunding RB,    
McCormick Place Project, Series B, 5.00%, 12/15/28 2,010 2,327,017
Railsplitter Tobacco Settlement Authority, RB:    
5.50%, 6/01/23 1,370 1,598,681
6.00%, 6/01/28 390 453,847
State of Illinois, RB, Build Illinois, Series B,    
5.25%, 6/15/34 1,700 1,931,370
    29,279,031
Indiana — 4.1%    
Indiana Municipal Power Agency, RB, Series B,    
6.00%, 1/01/39 4,525 5,277,417
Indianapolis Local Public Improvement Bond Bank, RB,    
Series F, 5.25%, 2/01/36 3,360 3,885,302
    9,162,719
Kansas — 1.7%    
Kansas Development Finance Authority, Refunding RB,    
Adventist Health, 5.50%, 11/15/29 3,250 3,810,755
Kentucky — 1.3%    
Kentucky Economic Development Finance Authority, RB,    
Owensboro Medical Health System, Series A,    
6.38%, 6/01/40 1,300 1,529,697
Louisville & Jefferson County Metropolitan Government    
Parking Authority, RB, Series A, 5.75%, 12/01/34 1,200 1,479,708
    3,009,405
Louisiana — 0.7%    
Louisiana Local Government Environmental Facilities &    
Community Development Authority, RB, Series A-1,    
6.50%, 11/01/35 1,420 1,644,985
Maine — 1.4%    
Maine Health & Higher Educational Facilities Authority,    
RB, Maine General Medical Center, 7.50%, 7/01/32 2,500 3,108,200
Massachusetts — 4.1%    
Massachusetts Development Finance Agency, RB,    
Wellesley College, Series J, 5.00%, 7/01/42 660 771,250
Massachusetts HFA, Refunding HRB, AMT:    
Series B, 5.50%, 6/01/41 3,000 3,226,770
Series F, 5.70%, 6/01/40 2,015 2,165,198
Massachusetts HFA, Refunding RB, Series C, AMT,    
5.35%, 12/01/42 1,630 1,747,963
Massachusetts State College Building Authority, RB,    
Series A, 5.50%, 5/01/39 1,000 1,155,650
    9,066,831

See Notes to Financial Statements. 

 

ANNUAL REPORTJULY 31, 201221
 

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

 

Municipal Bonds Par
(000)
Value
Michigan — 2.8%    
Lansing Board of Water & Light Utilities System, RB,    
Series A, 5.50%, 7/01/41 $   1,805 $ 2,138,636
Michigan State Building Authority, Refunding RB, Series I,    
6.00%, 10/15/38 1,250 1,445,500
Royal Oak Hospital Finance Authority Michigan,    
Refunding RB, William Beaumont Hospital, 8.25%,    
9/01/39 1,970 2,541,123
    6,125,259
Nevada — 3.3%    
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts    
Center, 6.00%, 4/01/34 2,850 3,357,357
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42 3,375 3,869,539
    7,226,896
New Jersey — 3.0%    
New Jersey EDA, Refunding RB, New Jersey American    
Water Co., Inc. Project, Series A, AMT,    
5.70%, 10/01/39 2,250 2,517,660
New Jersey Transportation Trust Fund Authority, RB,    
Transportation System:    
Series A, 5.88%, 12/15/38 2,670 3,108,761
Series B, 5.25%, 6/15/36 1,000 1,152,210
    6,778,631
New York — 5.7%    
Metropolitan Transportation Authority, RB, Series E,    
5.00%, 11/15/42 480 539,525
New York Liberty Development Corp., Refunding RB,    
Second Priority, Bank of America Tower at One Bryant    
Park Project, 6.38%, 7/15/49 1,200 1,368,780
New York State Dormitory Authority, RB, Series B:    
5.00%, 3/15/37 3,600 4,168,440
5.00%, 3/15/42 1,525 1,754,833
New York State Thruway Authority, RB, Series I,    
5.00%, 1/01/37 1,030 1,166,259
Triborough Bridge & Tunnel Authority, RB, General,    
Series A-2, 5.38%, 11/15/38 3,030 3,578,369
    12,576,206
North Carolina — 1.5%    
North Carolina Medical Care Commission, RB,    
Duke University Health System, Health Care Facilities,    
Series A, 5.00%, 6/01/32 2,010 2,316,746
North Carolina Medical Care Commission, Refunding RB,    
Wakemed, Health Care Facilities, Series A,    
5.00%, 10/01/31 840 953,123
    3,269,869
Pennsylvania — 3.9%    
Pennsylvania Economic Development Financing Authority,    
RB, American Water Co. Project, 6.20%, 4/01/39 1,075 1,260,137
Pennsylvania Turnpike Commission, RB, Sub-Series A:    
5.63%, 12/01/31 2,455 2,885,386
6.00%, 12/01/41 3,000 3,408,750
Philadelphia Hospitals & Higher Education Facilities    
Authority, Refunding RB, Children’s Hospital of    
Philadelphia, Series D, 5.00%, 7/01/32 1,030 1,188,352
    8,742,625
Puerto Rico — 0.5%    
Puerto Rico Sales Tax Financing Corp., RB,    
First Sub-Series A, 6.00%, 8/01/42 1,000 1,130,830
South Carolina — 0.7%    
City of North Charleston South Carolina, RB, Public    
Facilities Corp. Installment Purchase, 5.00%, 6/01/35 1,340 1,510,702

 

Municipal Bonds Par
(000)
Value
Texas — 10.5%    
Central Texas Regional Mobility Authority, Refunding RB,    
Senior Lien:    
5.75%, 1/01/31 $   1,000 $ 1,158,820
6.00%, 1/01/41 2,600 3,008,642
Conroe ISD Texas, GO, School Building, Series A,    
5.75%, 2/15/35 1,800 2,201,922
Harris County Health Facilities Development Corp.,    
Refunding RB, Memorial Hermann Healthcare System,    
Series B, 7.25%, 12/01/35 800 971,576
Katy ISD Texas, GO, Refunding, School Building, Series A,    
5.00%, 2/15/42 1,115 1,300,804
Lamar Texas Consolidated ISD, GO, Refunding, School    
House, Series A, 5.00%, 2/15/45 1,500 1,739,145
North Texas Tollway Authority, Refunding RB, System, First    
Tier, Series K-1 (AGC), 5.75%, 1/01/38 1,000 1,142,470
Tarrant County Cultural Education Facilities Finance Corp.,    
RB, Scott & White Healthcare, 6.00%, 8/15/45 3,795 4,483,868
Texas Private Activity Bond Surface Transportation Corp.,    
RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant    
Express Managed Lanes Project, 6.88%, 12/31/39 1,700 2,041,122
Texas State Turnpike Authority, RB, First Tier, Series A    
(AMBAC), 5.00%, 8/15/42 2,125 2,125,553
University of Texas System, Refunding RB, Financing    
System Series B, 5.00%, 8/15/43 2,680 3,149,241
    23,323,163
Virginia — 3.1%    
Virginia Public School Authority, RB, School Financing,    
6.50%, 12/01/35 1,500 1,870,275
Virginia Resources Authority, RB, Infrastructure,    
5.00%, 11/01/42 1,840 2,146,654
Virginia Small Business Financing Authority, RB, Senior    
Lien, Elizabeth River Crossing OPCO LLC Project, AMT,    
6.00%, 1/01/37 2,440 2,786,749
    6,803,678
Wisconsin — 2.7%    
Wisconsin Health & Educational Facilities Authority, RB,    
Ascension Health, Series D, 5.00%, 11/15/41 1,840 2,043,302
Wisconsin Health & Educational Facilities Authority,    
Refunding RB, Froedtert & Community Health,    
5.25%, 4/01/39 3,470 3,849,895
    5,893,197
Total Municipal Bonds — 85.6%   189,811,882
 
 
Municipal Bonds Transferred to    
Tender Option Bond Trusts (b)    
California — 20.1%    
Bay Area Toll Authority, Refunding RB, San Francisco Bay    
Area, Series F-1, 5.63%, 4/01/44 2,680 3,102,577
California Educational Facilities Authority, RB, University of    
Southern California, Series A, 5.25%, 10/01/39 4,200 4,916,310
Grossmont Union High School District, GO, Election of    
2008, Series B, 5.00%, 8/01/40 6,000 6,694,200
Los Angeles Community College District California, GO:    
Refunding, Series A, 6.00%, 8/01/33 7,697 9,372,490
Series C, 5.25%, 8/01/39 5,250 6,121,316
Los Angeles Unified School District California, GO, Series I,    
5.00%, 1/01/34 790 892,747
San Diego Public Facilities Financing Authority,    
Refunding RB, Series B, 5.50%, 8/01/39 8,412 9,852,874
University of California, RB, Series O, 5.75%, 5/15/34 3,000 3,607,390
    44,559,904

See Notes to Financial Statements. 

 

22ANNUAL REPORTJULY 31, 2012
 

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

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)
Par
(000)
Value
Colorado — 1.1%    
Colorado Health Facilities Authority, Refunding RB,    
Catholic Healthcare, Series A, 5.50%, 7/01/34 $    2,149 $ 2,456,879
District of Columbia — 3.4%    
District of Columbia, RB, Series A, 5.50%, 12/01/30 2,805 3,505,895
District of Columbia Water & Sewer Authority,    
Refunding RB, Series A, 5.50%, 10/01/39 3,507 4,100,871
    7,606,766
Florida — 3.1%    
County of Miami-Dade Florida, RB, Transit System, Sales    
Surtax, 5.00%, 7/01/22 (a) 980 1,099,628
Hillsborough County Aviation Authority, RB, Series A, AMT    
(AGC), 5.50%, 10/01/38 3,869 4,207,352
Lee County Housing Finance Authority, RB, Multi-County    
Program, Series A-2, AMT (Ginnie Mae),    
6.00%, 9/01/40 1,395 1,487,084
    6,794,064
Illinois — 4.6%    
City of Chicago Illinois, Refunding RB, Water System,    
Second Lien, 5.00%, 11/01/42 1,559 1,775,099
Illinois Finance Authority, RB, University of Chicago,    
Series B, 6.25%, 7/01/38 5,300 6,537,603
Illinois State Toll Highway Authority, RB, Series B,    
5.50%, 1/01/33 1,750 1,939,186
    10,251,888
Massachusetts — 1.5%    
Massachusetts School Building Authority, RB, Sales Tax,    
Senior Series B, 5.00%, 10/15/41 2,950 3,408,548
Nevada — 9.1%    
Clark County Water Reclamation District, GO:    
Limited Tax, 6.00%, 7/01/38 5,000 6,167,200
Series B, 5.50%, 7/01/29 5,668 7,024,077
Las Vegas Valley Water District, GO,    
Refunding, 5.00%, 6/01/28 6,070 7,036,283
    20,227,560
New Hampshire — 1.2%    
New Hampshire Health & Education Facilities Authority,    
RB, Dartmouth College, 5.25%, 6/01/39 2,159 2,576,470
New Jersey — 3.2%    
New Jersey State Housing & Mortgage Finance Agency,    
RB, S/F Housing, Series CC, 5.25%, 10/01/29 2,251 2,485,667
New Jersey Transportation Trust Fund Authority, RB,    
Transportation System, Series A (AGM),    
5.00%, 12/15/32 4,000 4,573,200
    7,058,867
New York — 15.1%    
Hudson New York Yards Infrastructure Corp., Senior RB,    
Series A, 5.75%, 2/15/47 1,290 1,511,842
New York City Municipal Water Finance Authority,    
Refunding RB:    
Second General Resolution, Fiscal Year 2012,    
   Series BB, 5.25%, 6/15/44 4,408 5,177,707
Series FF, 5.00%, 6/15/45 3,859 4,425,025
Series FF-2, 5.50%, 6/15/40 2,504 2,950,070
New York City Transitional Finance Authority, RB:    
Fiscal 2009, Series S-3, 5.25%, 1/15/39 2,499 2,824,137
Subseries E-1, 5.00%, 2/01/42 1,720 1,985,221
New York Liberty Development Corp., RB, 1 World Trade    
Center Port Authority Construction, 5.25%, 12/15/43 4,365 5,034,809
New York Liberty Development Corp., Refunding RB, 4    
World Trade Center Project, 5.75%, 11/15/51 2,560 3,028,864
New York State Dormitory Authority, ERB, Series B,    
5.25%, 3/15/38 5,700 6,603,906
    33,541,581

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)
Par
(000)
Value
Ohio — 1.6%    
County of Allen Ohio, Refunding RB, Catholic Healthcare,    
Series A, 5.25%, 6/01/38 $   3,120 $ 3,448,349
Puerto Rico — 0.9%    
Puerto Rico Sales Tax Financing Corp., Refunding RB,    
Series C, 5.25%, 8/01/40 1,750 1,943,349
South Carolina — 1.7%    
South Carolina State Public Service Authority,    
Refunding RB, Santee Cooper, Series A,    
5.50%, 1/01/38 3,240 3,859,909
Texas — 8.4%    
City of San Antonio Texas, Refunding RB, Series A,    
5.25%, 2/01/31 3,989 4,651,273
Harris County Cultural Education Facilities Finance Corp.,    
RB, Hospital, Texas Children’s Hospital Project, 5.50%,    
10/01/39 5,400 6,403,050
North Texas Tollway Authority, RB, Special Projects,    
System, Series A, 5.50%, 9/01/41 3,480 4,133,649
Waco Educational Finance Corp., Refunding RB,    
Baylor University, 5.00%, 3/01/43 3,000 3,439,920
    18,627,892
Utah — 1.0%    
City of Riverton Utah Hospital, RB, IHC Health Services    
Inc., 5.00%, 8/15/41 1,995 2,179,704
Virginia — 0.9%    
Fairfax County IDA Virginia, Refunding RB, Health Care,    
Inova Health System, Series A, 5.50%, 5/15/35 1,749 1,998,178
Washington — 1.4%    
University of Washington, Refunding RB, Series A,    
5.00%, 7/01/41 2,744 3,199,371
Total Municipal Bonds Transferred to    
Tender Option Bond Trusts — 78.3%   173,739,279
Total Long-Term Investments    
(Cost — $323,537,953) — 163.9%   363,551,161
 
 
Short-Term Securities Shares  
FFI Institutional Tax-Exempt Fund, 0.01% (c)(d) 176,582 176,582
Total Short-Term Securities    
(Cost — $176,582) — 0.1%   176,582
Total Investments (Cost — $323,714,535) — 164.0%   363,727,743
Other Assets Less Liabilities — 1.8%   3,866,504
Liability for TOB Trust Certificates, Including Interest    
Expense and Fees Payable — (39.0)%   (86,416,678)
VRDP Shares, at Liquidation Value — (26.8)%   (59,400,000)
Net Assets Applicable to Common Shares — 100.0%   $ 221,777,569

 

(a) When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty Value Unrealized
Appreciation/
Depreciation
Barclays Bank Plc $999,204      $(2,211)
Lebenthal & Co., Inc. $156,456  $(342)
JPMorgan Chase & Co. $1,099,628  $10,241 

 

(b)Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements. 

ANNUAL REPORTJULY 31, 201223
 
Schedule of Investments (concluded) BlackRock MuniYield Investment Fund (MYF)

(c)Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliate Shares Held
at July 31,
2011
Net
Activity
Shares Held
at July 31,
2012
Income
FFI Institutional        
Tax-Exempt Fund 2,085,565 (1,908,983) 176,582 $831

 

(d)Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1 $363,551,161 $363,551,161
Short-Term        
Securities $176,582 176,582
Total $176,582 $363,551,161 $363,727,743

 

1See above Schedule of Investments for values in each state or political subdivision.

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2012, such assets and liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Assets:        
Cash $641,630 $       641,630 
Liabilities:        
TOB trust        
certificates $  (86,373,943) (86,373,943)
VRDP Shares (59,400,000) (59,400,000)
Total $641,630 $(145,773,943) $(145,132,313)

There were no transfers between levels during the year ended July 31, 2012.

See Notes to Financial Statements. 

24ANNUAL REPORTJULY 31, 2012
 

Schedule of Investments July 31, 2012 BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)

 

Municipal Bonds Par
(000)
Value
 
New Jersey — 124.0%    
Corporate — 4.6%    
New Jersey EDA, Refunding RB, New Jersey American    
Water Co., Inc. Project, AMT:    
Series A, 5.70%, 10/01/39 $   2,925 $ 3,272,958
Series B, 5.60%, 11/01/34 2,430 2,766,555
Salem County Pollution Control Financing Authority,    
Refunding RB, Atlantic City Electric, Series A ,    
4.88%, 6/01/29 4,550 5,034,848
    11,074,361
County/City/Special District/School District — 15.6%    
City of Margate City New Jersey, GO,    
Refunding, Improvement, New Jersey:    
5.00%, 1/15/26 1,200 1,403,340
5.00%, 1/15/27 845 980,639
City of Perth Amboy New Jersey, GO, CAB,    
Refunding (AGM) (a):    
5.00%, 7/01/34 1,925 2,079,616
5.00%, 7/01/33 1,575 1,711,946
County of Hudson New Jersey, COP, Refunding (NPFGC),    
6.25%, 12/01/16 1,500 1,745,070
Essex County Improvement Authority, Refunding RB,    
Project Consolidation (NPFGC):    
5.50%, 10/01/28 2,700 3,551,391
5.50%, 10/01/29 5,085 6,723,997
Garden State Preservation Trust, RB, Capital Appreciation,    
Series B (AGM), 3.40%, 11/01/28 (b) 4,540 2,624,983
Gloucester County Improvement Authority, RB, County    
Guaranteed Loan—County Capital Program,    
5.00%, 4/01/38 1,000 1,098,000
Hudson County Improvement Authority, RB, Harrison    
Parking Facility Project, Series C (AGC),    
5.38%, 1/01/44 4,800 5,383,392
Middlesex County Improvement Authority, RB:    
Golf Course Projects, 5.25%, 6/01/22 1,455 1,572,724
Senior Heldrich Center Hotel, Series A,    
  5.00%, 1/01/20 655 415,584
Monmouth County Improvement Authority, Refunding RB,    
Government Loan (AMBAC):    
5.00%, 12/01/15 5 5,012
5.00%, 12/01/16 5 5,012
Newark Housing Authority, RB, South Ward Police Facility    
(AGC), 6.75%, 12/01/38 1,750 2,207,293
Newark Housing Authority, Refunding RB, Redevelopment    
Project (NPFGC), 4.38%, 1/01/37 2,875 2,704,225
Union County Improvement Authority, RB, Guaranteed    
Lease-Family Court Building Project, 5.00%, 5/01/42 2,835 3,233,885
    37,446,109
Education — 17.7%    
New Jersey EDA, RB, School Facilities Construction,    
Series CC-2:    
5.00%, 12/15/31 1,700 1,922,768
5.00%, 12/15/32 1,300 1,462,617
New Jersey EDA, Refunding RB,    
Series GG, 5.25%, 9/01/27 3,000 3,517,290
New Jersey Educational Facilities Authority, RB:    
Montclair State University, Series J, 5.25%, 7/01/38 1,140 1,256,633
Ramapo College, Series B, 5.00%, 7/01/37 155 174,612
Ramapo College, Series B, 5.00%, 7/01/42 340 381,504
New Jersey Educational Facilities Authority, Refunding RB:    
College of New Jersey, Series D, (AGM),    
  5.00%, 7/01/35 6,115 6,703,874
Georgian Court University, Series D, 5.25%, 7/01/37 1,000 1,060,750
Kean University, Series A, 5.50%, 9/01/36 4,500 5,087,295
New Jersey Institute of Technology, Series H,    
  5.00%, 7/01/31 1,250 1,398,800

 

Municipal Bonds Par
(000)
Value
 
New Jersey (continued)    
Education (concluded)    
New Jersey Educational Facilities Authority,    
Refunding RB: (concluded)    
Rider University Series A, 5.00%, 7/01/32 $   1,000 $ 1,099,540
Rowan University, Series B (AGC), 5.00%, 7/01/24 1,800 2,030,724
University of Medicine & Dentistry, Series B,    
7.13%, 12/01/23 1,300 1,629,212
University of Medicine & Dentistry, Series B,    
7.50%, 12/01/32 1,625 2,035,995
New Jersey Higher Education Student Assistance Authority,    
Refunding RB:    
Series 1A, 5.00%, 12/01/25 1,035 1,139,732
Series 1A, 5.00%, 12/01/26 645 708,075
Series 1A, 5.25%, 12/01/32 900 995,526
Series A, AMT, 5.75%, 12/01/29 4,045 4,622,100
New Jersey Institute of Technology, GO, Series A,    
5.00%, 7/01/42 4,320 4,909,291
Rutgers-State University of New Jersey, Refunding RB,    
Series F, 5.00%, 5/01/39 500 556,795
    42,693,133
Health — 13.8%    
New Jersey EDA, RB, Masonic Charity Foundation of    
New Jersey:    
5.25%, 6/01/24 1,425 1,470,771
5.25%, 6/01/32 685 705,392
New Jersey EDA, Refunding RB, First Mortgage,    
Winchester, Series A:    
5.75%, 11/01/24 2,500 2,574,450
5.80%, 11/01/31 1,000 1,026,020
New Jersey Health Care Facilities Financing Authority, RB:    
Childrens Specialized Hospital, Series A,    
5.50%, 7/01/36 1,540 1,579,901
Hunterdon Medical Center, Series A, 5.13%, 7/01/35 1,950 2,023,008
Meridian Health, Series I (AGC), 5.00%, 7/01/38 970 1,038,560
Pascack Valley Hospital Association,    
6.63%, 7/01/36 (c)(d) 1,845 18
Virtua Health (AGC), 5.50%, 7/01/38 2,500 2,782,000
New Jersey Health Care Facilities Financing Authority,    
Refunding RB:    
AHS Hospital Corp., 6.00%, 7/01/41 2,435 2,930,839
Barnabas Health, Series A, 5.63%, 7/01/32 1,090 1,196,831
Barnabas Health, Series A, 5.63%, 7/01/37 3,030 3,296,549
Kennedy Health System, 5.00%, 7/01/31 750 821,168
Kennedy Health System, 5.00%, 7/01/37 415 449,744
Meridian Health System, 5.00%, 7/01/23 500 580,790
Meridian Health System, 5.00%, 7/01/25 1,000 1,135,060
Meridian Health System, 5.00%, 7/01/26 830 932,796
Meridian Health System, 5.00%, 7/01/27 1,000 1,128,760
Robert Wood Johnson, 5.00%, 7/01/31 1,000 1,099,950
South Jersey Hospital, 5.00%, 7/01/36 385 399,522
South Jersey Hospital, 5.00%, 7/01/46 1,650 1,705,523
St. Barnabas Health Care System, Series A,    
5.00%, 7/01/29 4,155 4,272,420
    33,150,072
Housing — 9.2%    
New Jersey State Housing & Mortgage Finance Agency, RB:    
M/F Housing, Series A, 4.55%, 11/01/43 2,880 2,947,565
S/F Housing, Series CC, 5.00%, 10/01/34 3,385 3,646,864
S/F Housing, Series U, AMT, 4.95%, 10/01/32 695 727,095
S/F Housing, Series U, AMT, 5.00%, 10/01/37 995 1,032,631
S/F Housing, Series X, AMT, 4.85%, 4/01/16 2,700 2,785,131
S/F Housing, Series X, AMT, 5.05%, 4/01/18 550 604,813
Series A, 4.75%, 11/01/29 2,305 2,494,102
Series A, 6.50%, 10/01/38 1,250 1,334,950
Series A, AMT (FGIC), 4.90%, 11/01/35 1,365 1,376,288

See Notes to Financial Statements. 

 

ANNUAL REPORTJULY 31, 201225
 

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

 

Municipal Bonds Par
(000)
Value
 
New Jersey (continued)    
Housing (concluded)    
New Jersey State Housing & Mortgage Finance Agency,    
Refunding RB, S/F Housing, Series T, AMT,    
4.65%, 10/01/32 $   4,945 $ 5,114,811
    22,064,250
State — 42.7%    
Garden State Preservation Trust, RB (AGM):    
CAB, Series B, 2.82%, 11/01/23 (b) 1,860 1,357,670
Election of 2005, Series A, 5.80%, 11/01/22 (e) 4,300 5,029,624
New Jersey EDA, RB:    
Motor Vehicle Surcharge, Series A (NPFGC),    
5.25%, 7/01/24 1,415 1,725,621
Motor Vehicle Surcharge, Series A (NPFGC),    
5.25%, 7/01/25 2,000 2,452,380
Motor Vehicle Surcharge, Series A (NPFGC),    
5.25%, 7/01/33 12,500 13,381,000
School Facilities Construction, Series L (AGM),    
5.00%, 3/01/30 5,800 6,202,520
School Facilities Construction, Series P,    
5.00%, 9/01/15 3,000 3,378,750
School Facilities Construction, Series P,    
5.25%, 9/01/16 2,710 3,063,872
School Facilities Construction, Series Z (AGC),    
5.50%, 12/15/34 3,665 4,204,158
Series Y, 5.00%, 9/01/33 880 968,440
New Jersey EDA, Refunding RB:    
5.00%, 6/15/26 440 488,928
5.00%, 6/15/28 720 793,030
5.00%, 6/15/29 1,760 1,929,400
School Facilities Construction, Series AA, 5.50%,    
12/15/29 3,000 3,517,410
School Facilities Construction, Series AA, 5.25%,    
12/15/33 1,000 1,130,140
School Facilities, Series GG, 5.25%, 9/01/26 7,000 8,265,180
New Jersey Health Care Facilities Financing Authority, RB,    
Hospital Asset Transformation Program,    
Series A , 5.25%, 10/01/38 2,300 2,505,436
New Jersey Transportation Trust Fund Authority, RB,    
Transportation System:    
CAB, Series A (AGC), 5.63%, 12/15/28 1,250 1,478,937
Series A, 6.00%, 6/15/35 6,030 7,435,050
Series A, 5.88%, 12/15/38 3,650 4,249,804
Series A, 6.00%, 12/15/38 1,950 2,289,417
Series A, 5.50%, 6/15/41 5,000 5,844,100
Series A (AGC), 5.50%, 12/15/38 1,000 1,137,770
Series B, 5.25%, 6/15/36 5,000 5,761,050
Series B, 5.00%, 6/15/42 7,340 8,220,727
State of New Jersey, COP, Equipment Lease Purchase,    
Series A:    
5.25%, 6/15/27 4,200 4,769,100
5.25%, 6/15/28 1,100 1,242,428
    102,821,942
Transportation — 15.0%    
Delaware River Port Authority, RB, Series D,    
5.00%, 1/01/40 1,535 1,687,379
New Jersey State Turnpike Authority, RB:    
Growth & Income Securities, Series B (AMBAC),    
0.00%, 1/01/15 (a) 4,870 4,545,561
Series A, 5.00%, 1/01/35 1,160 1,336,726
Series E, 5.25%, 1/01/40 2,525 2,840,196
New Jersey Transportation Trust Fund Authority, RB,    
Transportation System, CAB, Series C (AMBAC),    
4.77%, 12/15/35 (b) 4,140 1,375,018

 

Municipal Bonds Par
(000)
Value
 
New Jersey (concluded)    
Transportation (concluded)    
Port Authority of New York & New Jersey, RB:    
Consolidated, 169th Series, AMT, 5.00%, 10/15/41 $       250 $ 275,597
Consolidated, 93rd Series, 6.13%, 6/01/94 5,000 6,262,450
JFK International Air Terminal, 6.00%, 12/01/42 2,700 3,057,831
Port Authority of New York & New Jersey, Refunding RB,    
AMT:    
Consolidated, 152nd Series, 5.75%, 11/01/30 3,300 3,941,190
Consolidated, 152nd Series, 5.25%, 11/01/35 240 265,375
Consolidated, 172nd Series, 5.00%, 10/01/34 1,500 1,694,940
South Jersey Port Corp., Refunding RB:    
4.75%, 1/01/18 4,280 4,329,734
4.85%, 1/01/19 2,485 2,513,130
5.00%, 1/01/20 2,000 2,021,620
    36,146,747
Utilities — 5.4%    
New Jersey EDA, Refunding RB, United Water of New    
Jersey Inc., Series B (AMBAC), 4.50%, 11/01/25 4,500 4,901,355
Rahway Valley Sewerage Authority, RB, CAB, Series A    
(NPFGC), 4.40%, 9/01/31 (b) 6,000 2,614,320
Union County Utilities Authority, Refunding RB:    
County Deficiency Agreement, Series A, 5.00%,    
  6/15/41 4,115 4,717,272
Covanta Union, Series A, AMT, 5.25%, 12/01/31 670 744,591
    12,977,538
Total Municipal Bonds in New Jersey   298,374,152
 
 
Puerto Rico — 6.5%    
State — 6.2%    
Puerto Rico Sales Tax Financing Corp., RB,    
First Sub-Series A:    
5.75%, 8/01/37 6,000 6,713,220
6.00%, 8/01/42 4,000 4,523,320
Puerto Rico Sales Tax Financing Corp., Refunding RB,    
First Sub-Series C, 6.00%, 8/01/39 3,320 3,807,476
    15,044,016
Transportation — 0.3%    
Puerto Rico Highway & Transportation Authority,    
Refunding RB, Series AA, 4.95%, 7/01/26 590 642,303
Total Municipal Bonds in Puerto Rico   15,686,319
Total Municipal Bonds — 130.5%   314,060,471
 
 
Municipal Bonds Transferred to    
Tender Option Bond Trusts (f)    
 
New Jersey — 20.5%    
Education — 2.7%    
New Jersey EDA, RB, School Facilities Construction,    
Series Z (AGC), 6.00%, 12/15/34 3,600 4,242,600
Rutgers State University of New Jersey, Refunding RB,    
Series F, 5.00%, 5/01/39 2,009 2,237,190
    6,479,790
State — 3.1%    
Garden State Preservation Trust, RB, Election of 2005,    
Series A (AGM), 5.75%, 11/01/28 5,460 7,347,031
Transportation — 8.8%    
New Jersey Transportation Trust Fund Authority, RB,    
Transportation System, Series A (AGM),    
5.00%, 12/15/32 4,100 4,687,530

See Notes to Financial Statements. 

 

26ANNUAL REPORTJULY 31, 2012
 

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

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
Par
(000)
Value
 
New Jersey (concluded)    
Transportation (concluded)    
Port Authority of New York & New Jersey, RB,    
Consolidated, 169th Series, AMT, 5.00%, 10/15/41 $11,250 $ 12,401,887
Port Authority of New York & New Jersey, Refunding RB,    
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35 3,764 4,161,624
    21,251,041
Utilities — 5.9%    
Union County Utilities Authority, Refunding RB,    
Covanta Union, Series A, AMT, 5.25%, 12/01/31 12,820 14,247,251
Total Municipal Bonds in New Jersey   49,325,113
 
 
Puerto Rico — 1.0%    
State — 1.0%    
Puerto Rico Sales Tax Financing Corp., Refunding RB,    
Series C, 5.25%, 8/01/40 2,220 2,465,277
Total Municipal Bonds Transferred to    
Tender Option Bond Trusts — 21.5%   51,790,390
Total Long-Term Investments    
(Cost — $333,677,128) — 152.0%   365,850,861
 
 
 
Short-Term Securities Shares  
BIF New Jersey Municipal Money Fund, 0.01% (g)(h) 1,495,608 1,495,608
Total Short-Term Securities    
(Cost — $1,495,608) — 0.6%   1,495,608
Total Investments (Cost — $335,172,736) — 152.6%   367,346,469
Other Assets Less Liabilities — 1.0%   2,437,215
Liability for TOB Trust Certificates, Including Interest    
Expense and Fees Payable — (11.2)%   (26,824,377)
VRDP Shares, at Liquidation Value — (42.4)%   (102,200,000)
Net Assets Applicable to Common Shares — 100.0%   $ 240,759,307

 

(a) Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(b)Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c)Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d)Non-income producing security.
(e)US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(f)Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(g)Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Affiliate Shares Held
at July 31,
2011
Net
Activity
Shares Held
at July 31,
2012
Income
BIF New Jersey Municipal        
Money Fund 13,176,800 (11,681,192) 1,495,608 $532

 

(h)Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1 $365,850,861 $365,850,861
Short-Term        
Securities $1,495,608 1,495,608
Total $1,495,608 $365,850,861 $367,346,469

 

1See above Schedule of Investments for values in each sector or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Liabilities:        
TOB trust        
certificates $ (26,812,696) $ (26,812,696)
VRDP Shares (102,200,000) (102,200,000)
Total $(129,012,696) $(129,012,696)

 

There were no transfers between levels during the year ended July 31, 2012.

See Notes to Financial Statements. 

ANNUAL REPORTJULY 31, 201227
 

Statements of Assets and Liabilities

July 31, 2012 BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
BlackRock
MuniYield
California
Fund, Inc.
(MYC)
BlackRock
MuniYield
Investment
Fund
(MYF)
  BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Assets
Investments at value — unaffiliated1 $ 102,989,929   $ 107,696,606   $ 580,646,775   $ 363,551,161   $ 365,850,861  
Investments at value — affiliated 2   480,082     1,351,621     3,043,312     176,582     1,495,608  
Cash               641,630      
Interest receivable   942,605     757,311     7,937,554     4,344,429     3,425,579  
Investments sold receivable       99,962     7,961,325     6,245,957      
Deferred offering costs   179,904     225,460     245,484     207,549     257,983  
TOB trust receivable               490,000      
Prepaid expenses   1,434     1,609     8,000     4,939     5,173  
Total assets   104,593,954     110,132,569     599,842,450     375,662,247     371,035,204  
 
Accrued Liabilities
Investments purchased payable   1,264,060         13,688,224     6,783,788      
Income dividends payable — Common Shares   262,902     317,479     1,682,325     1,074,668     1,052,925  
Investment advisory fees payable   47,491     46,168     247,965     153,379     154,708  
Interest expense and fees payable   2,580     448     62,839     42,735     11,681  
Officer’s and Directors’ fees payable   1,455     1,474     7,201     4,363     5,099  
Other accrued expenses payable   48,307     66,040     57,302     51,802     38,788  
Total accrued liabilities   1,626,795     431,609     15,745,856     8,110,735     1,263,201  
 
Other Liabilities
TOB trust certificates   6,208,399     3,330,000     116,855,901     86,373,943     26,812,696  
VRDP Shares, at liquidation value of
    $100,000 per share 3,4,5
  29,600,000     37,300,000     105,900,000     59,400,000     102,200,000  
Total other liabilities   35,808,399     40,630,000     222,755,901     145,773,943     129,012,696  
Total liabilities   37,435,194     41,061,609     238,501,757     153,884,678     130,275,897  
Net Assets Applicable to Common Shareholders $ 67,158,760   $ 69,070,960   $ 361,340,693   $ 221,777,569   $ 240,759,307  
 
Net Assets Applicable to Common Shareholders Consist of
Paid-in capital 6,7 $ 59,587,002   $ 60,571,325   $ 301,361,083   $ 189,406,877   $ 204,647,230  
Undistributed net investment income   879,509     891,309     4,900,807     3,803,497     4,512,450  
Accumulated net realized loss   (2,010,408 )   (1,117,127 )   (2,181,004 )   (11,446,013 )   (574,106 )
Net unrealized appreciation/depreciation   8,702,657     8,725,453     57,259,807     40,013,208     32,173,733  
Net Assets Applicable to Common Shareholders $ 67,158,760   $ 69,070,960   $ 361,340,693   $ 221,777,569   $ 240,759,307  
Net asset value per Common Share $ 15.97   $ 15.12   $ 16.97   $ 16.30   $ 16.92  
1 Investments at cost — unaffiliated $ 94,287,272   $ 98,971,153   $ 523,386,968   $ 323,537,953   $ 333,677,128  
2 Investments at cost — affiliated $ 480,082   $ 1,351,621   $ 3,043,312   $ 176,582   $ 1,495,608  
3 VRDP Shares outstanding, par value
        $0.10 per share
  296     373     1,059         1,022  
4 VRDP Shares outstanding, par value
        $0.05 per share
              594      
5 Preferred Shares authorized   1,536     1,985     8,059     1 million     5,782  
6 Common Shares outstanding,
        $0.10 par value
  4,206,439     4,568,049     21,295,255     13,603,390     14,228,711  
7 Common Shares authorized   200 million     200 million     200 million     unlimited     200 million  

See Notes to Financial Statements.

 

28ANNUAL REPORTJULY 31, 2012
 

Statements of Operations

Year Ended July 31, 2012 BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
BlackRock
MuniYield
California
Fund, Inc.
(MYC)
BlackRock
MuniYield
Investment
Fund
(MYF)
BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Investment Income
Interest $ 4,271,740   $ 4,968,311   $ 25,498,741   $ 16,005,247   $ 15,925,847  
Income — affiliated   4             831     532  
Total income   4,271,744     4,968,311     25,498,741     16,006,078     15,926,379  
 
Expenses
Investment advisory   533,145     530,356     2,793,656     1,679,732     1,741,268  
Liquidity fees   215,054     256,972     729,520     409,193     704,032  
Professional   59,907     62,989     122,610     83,961     95,991  
Remarketing fees on Preferred Shares   34,178     33,570     95,310     53,460     91,980  
Accounting services   29,744     30,518     93,320     65,271     68,388  
Transfer agent   25,999     20,117     37,225     35,342     36,540  
Registration   13,099     1,963     9,185     9,140     9,188  
Custodian   10,381     7,778     23,193     14,236     17,269  
Officer and Directors   9,151     10,213     51,986     31,532     34,705  
Printing   8,954     8,450     3,515     9,472     10,034  
Miscellaneous   71,296     72,246     121,628     93,431     114,631  
Total expenses excluding interest
   expense, fees and amortization of
   offering costs
  1,010,908     1,035,172     4,081,148     2,484,770     2,924,026  
Interest expense, fees and amortization
   of offering costs 1
  152,027     249,689     1,424,781     905,405     722,937  
Total expenses   1,162,935     1,284,861     5,505,929     3,390,175     3,646,963  
Less fees waived by advisor   (3,187 )       (12,503 )   (2,746 )   (17,388 )
Total expenses after fees waived   1,159,748     1,284,861     5,493,426     3,387,429     3,629,575  
Net investment income   3,111,996     3,683,450     20,005,315     12,618,649     12,296,804  
 
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:                              
Investments   433,743     1,110,108     7,618,828     4,795,574     2,125,131  
Financial futures contracts   (307,086 )   (331,756 )   (1,206,118 )   (1,428,904 )   (1,315,828 )
    126,657     778,352     6,412,710     3,366,670     809,303  
Net change in unrealized
   appreciation/depreciation on:
                             
Investments   6,018,338     7,175,639     48,830,780     31,738,215     28,896,246  
Financial futures contracts   61,601     92,401         277,202     197,122  
    6,079,939     7,268,040     48,830,780     32,015,417     29,093,368  
Total realized and unrealized gain   6,206,596     8,046,392     55,243,490     35,382,087     29,902,671  
 
Dividends to AMPS Shareholders From
Net investment income   (68,450 )                
Net Increase in Net Assets Applicable
   to Common Shareholders Resulting
   from Operations
$ 9,250,142   $ 11,729,842   $ 75,248,805   $ 48,000,736   $ 42,199,475  
 
1 Related to TOBs and/or VRDP Shares.                              

See Notes to Financial Statements.

 

ANNUAL REPORTJULY 31, 201229
 

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

 

  Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders: 2012 2011
Operations
Net investment income $ 3,111,996   $ 3,676,228  
Net realized gain (loss)   126,657     (73,064 )
Net change in unrealized appreciation/depreciation   6,079,939     (101,981 )
Dividends to AMPS Shareholders from net investment income   (68,450 )   (425,018 )
Net increase in net assets applicable to Common Shareholders
   resulting from operations
  9,250,142     3,076,165  
 
Dividends to Common Shareholders From
Net investment income   (3,110,662 )   (3,066,494 )
 
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders   6,139,480     9,671  
Beginning of year   61,019,280     61,009,609  
End of year $ 67,158,760   $ 61,019,280  
Undistributed net investment income $ 879,509   $ 1,091,301  
 
 
BlackRock MuniYield Arizona Fund, Inc. (MZA)
 
  Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders: 2012 2011
Operations  
Net investment income $ 3,683,450   $ 3,991,047  
Net realized gain (loss)   778,352     (545,784 )
Net change in unrealized appreciation/depreciation   7,268,040     (1,005,616 )
Dividends to AMPS Shareholders from net investment income       (220,331 )
Net increase in net assets applicable to Common Shareholders
   resulting from operations
  11,729,842     2,219,316  
 
Dividends to Common Shareholders From
Net investment income   (3,806,859 )   (3,805,878 )
 
Capital Share Transactions
Reinvestment of common dividends   61,778     54,635  
 
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders   7,984,761     (1,531,927 )
Beginning of year   61,086,199     62,618,126  
End of year $ 69,070,960   $ 61,086,199  
Undistributed net investment income $ 891,309   $ 891,154  

See Notes to Financial Statements.

 

30ANNUAL REPORTJULY 31, 2012
 

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

 

  Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders: 2012 2011
Operations
Net investment income $ 20,005,315   $ 20,314,878  
Net realized gain (loss)   6,412,710     (2,026,046 )
Net change in unrealized appreciation/depreciation   48,830,780     (5,929,821 )
Dividends to AMPS Shareholders from net investment income       (558,419 )
Net increase in net assets applicable to Common Shareholders
   resulting from operations
  75,248,805     11,800,592  
 
Dividends to Common Shareholders From
Net investment income   (20,187,902 )   (19,847,178 )
 
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders   55,060,903     (8,046,586 )
Beginning of year   306,279,790     314,326,376  
End of year $ 361,340,693   $ 306,279,790  
Undistributed net investment income $ 4,900,807   $ 4,864,285  
 
 
BlackRock MuniYield Investment Fund (MYF)
 
  Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders: 2012 2011
Operations
Net investment income $ 12,618,649   $ 13,231,449  
Net realized gain (loss)   3,366,670     (707,747 )
Net change in unrealized appreciation/depreciation   32,015,417     (7,175,483 )
Dividends to AMPS Shareholders from net investment income       (276,033 )
Net increase in net assets applicable to Common Shareholders
   resulting from operations
  48,000,736     5,072,186  
 
Dividends to Common Shareholders From
Net investment income   (12,738,803 )   (12,484,922 )
 
Capital Share Transactions
Reinvestment of common dividends   388,311     269,741  
 
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders   35,650,244     (7,142,995 )
Beginning of year   186,127,325     193,270,320  
End of year $ 221,777,569   $ 186,127,325  
Undistributed net investment income $ 3,803,497   $ 3,810,971  

See Notes to Financial Statements.

 

ANNUAL REPORTJULY 31, 201231
 

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

 

  Year Ended July 31,
Increase (Decrease) in Net Assets Applicable to Common Shareholders: 2012 2011
Operations
Net investment income $ 12,296,804   $ 13,022,724  
Net realized gain   809,303     1,150,860  
Net change in unrealized appreciation/depreciation   29,093,368     (6,891,568 )
Dividends to AMPS Shareholders from net investment income       (489,633 )
Net increase in net assets applicable to Common Shareholders
   resulting from operations
  42,199,475     6,792,383  
 
Dividends to Common Shareholders From
Net investment income   (12,674,633 )   (12,386,553 )
 
Capital Share Transactions
Reinvestment of common dividends   113,352     281,803  
 
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders   29,638,194     (5,312,367 )
Beginning of year   211,121,113     216,433,480  
End of year $ 240,759,307   $ 211,121,113  
Undistributed net investment income $ 4,512,450   $ 4,779,505  

See Notes to Financial Statements.

 

32ANNUAL REPORTJULY 31, 2012
 

Statements of Cash Flows

Year Ended July 31, 2012 BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
  BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
  BlackRock
MuniYield
California
Fund, Inc.
(MYC)
  BlackRock
MuniYield
Investment
Fund
(MYF)
  BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Cash Provided by (Used for) Operating Activities
Net increase in net assets resulting from
   operations, excluding dividends to AMPS
   Shareholders
$ 9,318,592   $ 11,729,842   $ 75,248,805   $ 48,000,736   $ 42,199,475  
Adjustments to reconcile net increase in net
   assets resulting from operations to net cash
   provided by (used for) operating activities:
                             
(Increase) decrease in interest receivable   1,905     (12,949 )   (61,097 )   (30,234 )   (396,834 )
Decrease in cash pledged as collateral for
        financial futures contracts
  26,400     39,600         118,800     85,000  
Decrease in prepaid expenses   4,632     7,087     20,354     17,740     20,713  
Decrease in other assets               2,356      
Increase in investment advisory fees payable   4,805     3,240     27,689     23,354     20,205  
Increase (decrease) in interest expense and
        fees payable
  1,927     (10,683 )   (38,844 )   (16,507 )   6,601  
Increase in other accrued expenses payable   17,750     64,634     15,827     51,802     24,616  
Decrease in variation margin payable   (23,750 )   (35,625 )       (106,875 )   (76,000 )
Increase in Officer’s and Directors’ fees
         payable
  1,245     1,204     5,637     3,602     3,613  
Net realized and unrealized gain on investments   (6,452,081 )   (8,285,747 )   (56,449,608 )   (36,533,789 )   (31,021,377 )
Amortization of premium and accretion of
   discount on investments
  190,459     99,321     861,269     656,741     (186,646 )
Amortization of deferred offering costs   43,110     83,369     219,109     125,384     192,635  
Proceeds from sales of long-term investments   25,461,973     28,514,123     254,413,577     107,562,605     76,803,519  
Purchases of long-term investments   (30,532,998 )   (30,283,682 )   (263,970,360 )   (132,910,857 )   (104,774,182 )
Net proceeds from sales (purchases) of
   short-term securities
  280,602     1,608,909     1,998,118     1,908,983     11,681,192  
Cash provided by (used for) operating activities   (1,655,429 )   3,522,643     12,290,476     (11,126,159 )   (5,417,470 )
 
 
Cash Provided by (Used for) Financing Activities
Cash receipts from TOB trust certificates   5,083,399     330,000     17,761,255     27,284,255     18,158,995  
Cash payments for TOB trust certificates           (9,782,857 )   (3,034,299 )    
Cash payments on redemption of AMPS   (29,625,000 )                
Cash receipts from issuance of VRDP Shares   29,600,000                  
Cash payments for offering costs   (223,014 )   (153,161 )   (143,199 )   (121,210 )   (113,796 )
Cash dividends paid to Common Shareholders   (3,104,353 )   (3,744,792 )   (20,187,904 )   (12,315,333 )   (12,539,439 )
Cash dividends paid to AMPS Shareholders   (75,603 )                
Decrease in bank overdraft               (45,624 )   (88,290 )
Cash provided for (used for) financing activities   1,655,429     (3,567,953 )   (12,352,705 )   11,767,789     5,417,470  
 
 
Cash
Net increase (decrease) in cash.     $ (45,310 ) $ (62,229 ) $ 641,630      
Cash at beginning of year       45,310     62,229          
Cash at end of year             $ 641,630      
 
 
Cash Flow Information
Cash paid during the year for interest and fees $ 150,100   $ 260,372   $ 1,463,625   $ 921,912   $ 716,336  
 
 
Non-cash Financing Activities
Capital shares issued in reinvestment of
   dividends paid to
                             
   Common Shareholders     $ 61,778       $ 388,311   $ 113,352  

 

A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the year, based on the average borrowings outstanding in relation to average total assets.

See Notes to Financial Statements.

ANNUAL REPORTJULY 31, 201233
 

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

 

               Period
June 1,
2008
to July 31,
2008
  Year Ended
May 31,
2008
 
                     
   Year Ended July 31,         
   2012  2011  2010  2009        
Per Share Operating Performance
Net asset value, beginning of period  $14.51   $14.50   $12.99   $13.51   $14.05   $14.91 
Net investment income 1   0.74    0.87    0.88    0.87    0.14    0.91 
Net realized and unrealized gain (loss)   1.48    (0.03)   1.40    (0.55)   (0.53)   (0.86)
Dividends to AMPS Shareholders from net
   investment income
   (0.02)   (0.10)   (0.10)   (0.20)   (0.04)   (0.27)
Net increase (decrease) from investment
   operations
   2.20    0.74    2.18    0.12    (0.43)   (0.22)
Dividends to Common Shareholders from
   net investment income
   (0.74)   (0.73)   (0.67)   (0.64)   (0.11)   (0.64)
Net asset value, end of period  $15.97   $14.51   $14.50   $12.99   $13.51   $14.05 
Market price, end of period  $15.80   $12.98   $13.54   $11.60   $12.12   $12.81 
                               
Total Investment Return Applicable to Common Shareholders 2
Based on net asset value   15.73%    5.71%    17.67%    2.26%    (3.01)%3   (1.10)%
Based on market price   28.00%    1.26%    23.05%    1.79%    (4.56)%3   (3.48)%
                               
Ratio to Average Net Assets Applicable to Common Shareholders
Total expenses 4   1.82%    1.23%    1.20%    1.33%    1.39%5    1.28% 
Total expenses after fees waived and
   paid indirectly4
   1.81%    1.22%    1.12%    1.15%    1.15%5    1.04% 
Total expenses after fees waived and
   paid indirectly and excluding
                              
Total expenses after fees waived and
   paid indirectly and excluding interest
   expense, fees and amortization of
   offering costs4,6
   1.57%7    1.21%    1.12%    1.11%    1.11%5    1.04% 
Net investment income4   4.86%    6.16%    6.30%    7.01%    6.36%5    6.31% 
Dividends to AMPS Shareholders   0.11%    0.71%    0.75%    1.59%    1.84%5    1.89% 
Net investment income to Common Shareholders   4.75%    5.45%    5.55%    5.42%    4.52%5    4.42% 
                               
Supplemental Data
Net assets applicable to Common Shareholders,                              
end of period (000)  $67,159   $61,019   $61,010   $54,642   $56,830   $59,101 
AMPS outstanding at $25,000 liquidation                              
preference, end of period (000)      $29,632   $29,625   $29,625   $29,625   $31,000 
VRDP Shares outstanding at $100,000                              
liquidation value, end of period (000)  $29,600                     
Portfolio turnover   27%    23%    27%    32%    2%    21% 
Asset coverage per AMPS at $25,000 liquidation                              
preference, end of period      $76,499   $76,492