MuniYield Fund, Inc.
Semi-Annual
Report
April 30, 1994
Officers and Directors
Arthur Zeikel, President and Director
Kenneth S. Axelson, Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
110 Washington Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
<PAGE>
NYSE Symbol
MYD
This report, including the financial informa-
tion herein, is transmitted to the shareholders
of MuniYield Fund, Inc. for their information.
It is not a prospectus, circular or representa-
tion intended for use in the purchase of shares
of the Fund or any securities mentioned in
the report. Past performance results shown
in this report should not be considered a repre-
sentation of future performance. The Fund
has leveraged its Common Stock by issuing
Preferred Stock to provide the Common Stock
shareholders with a potentially higher rate of
return. Leverage creates risks for Common
Stock shareholders, including the likelihood
of greater volatility of net asset value and
market price of shares of the Common Stock,
and the risk that fluctuations in the short-term
dividend rates of the Preferred Stock may
affect the yield to Common Stock shareholders.
MuniYield Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield Fund, Inc.
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1994, the
Common Stock of MuniYield Fund, Inc. earned
$0.680 per share income dividends, which includes
earned and unpaid dividends of $0.085. This
represents a net annualized yield of 9.15%, based
on a month-end per share net asset value of $14.99.
Over the same period, the total investment return on
the Fund's Common Stock was -6.29%, based on
a change in per share net asset value from $16.80
to $14.99, and assuming reinvestment of $0.690
per share income dividends and $0.090 per share
capital gains distributions.
<PAGE>
For the six-month period ended April 30, 1994, the
Fund's Auction Market Preferred Stock had an average
yield as follows: Series A, 2.36%; Series B, 3.07%;
Series C, 2.65%; Series D, 2.41%; and Series E, 2.87%.
The Environment
Inflationary expectations and investor sentiment
changed for the worse during the three-month period
ended April 30, 1994. Following stronger-than-
expected economic results through year-end 1993,
the Federal Reserve Board broke with tradition on
February 4, 1994 and publicly announced a modest
25 basis point (0.25%) increase in short-term interest
rates. At the March 22, 1994 meeting of the Federal
Open Market Committee, the Federal Reserve Board
again raised the Federal Funds rate by 25 basis
points, followed by another 25 basis point increase on
April 18, 1994.
Rather than view the Federal Reserve Board's first
tightening move as a preemptive strike against
inflation, fixed-income investors focused on Chairman
Greenspan's implicit promise of further tightening
should the rate of inflation accelerate, and bond prices
declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While
the second and third increases in the Federal Funds
rate were less of a surprise, investors remained
concerned that interest rates would trend upward
sharply as the central bank aggressively attempted
to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors
were forced to liquidate positions in the face of
declining stock and bond prices. Investor confidence
was not restored with the announcement of the
surprisingly slow 2.6% gross domestic product growth
rate for the first calendar quarter of 1994. Instead,
investors focused on the higher-than-expected (but
still moderate) broad inflation measures, and became
concerned that business activity was beginning to
stagnate as inflationary pressures were increasing.
The volatility in the US capital markets was mirrored
in international markets during the period. Political
and economic developments, along with concerns of
heightened global inflationary pressures, led to a sell-
off in most capital markets, especially the emerging
markets that had appreciated strongly in 1993.
<PAGE>
The Municipal Market
During the six months ended April 30, 1994, tax-
exempt bond yields exhibited considerable volatility
as they rose to their highest level in the past two
years. As measured by the Bond Buyer Revenue Bond
Index, the yield on newly issued municipal bonds
maturing in 30 years rose over 90 basis points
to 6.42% by the end of April. Yields on seasoned
municipal revenue bonds rose by over 100 basis points
in sympathy with the equally dramatic increase in
long-term US Treasury bond yields. By the end of
April, yields on US Treasury securities rose by over
95 basis points to approximately 7.30%.
Long-term tax-exempt bond yields were essentially
unchanged from the end of October 1993 to the end of
January 1994. However, on a weekly basis, tax-exempt
bond yields fluctuated by as much as 15 basis points
as investors were unable to reconcile the rapid
economic growth seen late last year with continued
low inflation. Following the initial interest rate in-
crease by the Federal Reserve Board in early Febru-
ary, municipal bond prices began to erode in concert
with taxable bond prices as investors began to sell
securities in anticipation of further interest rate
increases. This fear led investors to withdraw from
the tax-exempt market. From early February to the
end of March, total assets of all tax-exempt bond
funds declined by $14 billion to $247 billion. This
decline in investor demand, coupled with fears
that the robust economic recovery seen during the
fourth quarter of 1993 would continue well into 1994,
helped push municipal bond yields higher in February
and March. Attracted by tax-exempt yields in excess
of 6.25%, investor demand returned in April, allowing
yields to decline approximately 15 basis points to
end the April period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of
that experienced over the past six months has not
been seen since 1987 when municipal bond rates rose
250 basis points between March and October of that
year. It is very important to note that the recent
municipal bond price declines were largely the result
of consistent and insistent selling pressures over the
last two months. In 1987, the tax-exempt bond market
was much more volatile and, at times, chaotic as
investors sought to liquidate positions without con-
cern for fundamental value. For the most part, the
recent price deterioration has been orderly, and the
municipal bond market's liquidity and integrity have
not been challenged or jeopardized.
<PAGE>
To a large extent, the municipal bond market has
continued to be supported by its strong technical
position. New-issue volume for the last six months
has been less than $105 billion. This represents a
decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has
been discussed in previous shareholder reports. This
reduced issuance has minimized potential selling
pressure in recent months since institutional inves-
tors have been wary of selling appreciable amounts of
securities that they may be unable to replace later
this year at any price level. We expect this decline in
issuance to continue since we anticipate recent yield
increases to significantly impact future municipal
bond issuance. Just as higher mortgage rates slow
home mortgage refinancings, the recent rise in bond
yields will prevent bond refinancings from becoming
the driving force in bond issuance in 1994 as they
were in 1993.
Despite recent price declines, tax-exempt securities
remain among the most attractive investment alterna-
tives available. After the recent yield increases, longer-
term municipal securities yielded approximately
90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial
after-tax yield advantages. To investors in the 39%
marginal Federal income tax bracket, the purchase of
a municipal bond yielding 6.50% represents an
after-tax equivalent of 10.65%. With prevailing esti-
mates of 1994 inflation at no more than 3%--4%, real
after-tax rates in excess of 6.50% easily compensate
longer-term investors for much of the price volatility
recently experienced.
Portfolio Strategy
During the six months ended April 30, 1994, our
portfolio strategy concentrated on modestly restruc-
turing the Fund to adopt a more defensive posture in
the marketplace. We sold deeply discounted securi-
ties that we had purchased during the prior year in
anticipation of lower interest rates, replacing them
with investment-grade tax-exempt bonds priced over
par. Such securities tend to exhibit less volatility and
can therefore be expected to perform relatively well
in an uncertain interest rate environment. Addition-
ally, the higher coupons associated with these
premium bonds generate a significant amount of
tax-exempt income for Common Stock shareholders.
<PAGE>
In spite of our more cautious market outlook, we have
been reluctant to increase cash reserves substantially
above 5% of net assets. Any significant effort to raise
the Fund's cash position through the liquidation of
the portfolio's long-term holdings would have an
adverse impact on the dividends to Common Stock
shareholders. In addition, the expectation of declin-
ing volume in the tax-exempt marketplace may make
it exceedingly difficult to reinvest the proceeds in the
months ahead. Volume for the quarter ended April 30,
1994 totaled $42.2 billion, representing a 40% de-
crease from levels one year ago. Furthermore, while
cautious, our outlook is not overly negative and does
in fact leave open the possibility for interest rates
to resume their downward trend, perhaps as early as
in the second half of 1994. For now we consider it
prudent to maintain a relatively unaggressive invest-
ment strategy, focusing our efforts on sustaining the
current level of tax-exempt income.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
June 2, 1994
<PAGE>
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield Fund, Inc. utilizes leveraging to seek to
enhance the yield and net asset value of its Common
Stock. However, these objectives cannot be achieved
in all interest rate environments. To leverage, the
Fund issues Preferred Stock, which pays dividends
at prevailing short-term interest rates, and invests the
proceeds in long-term municipal bonds. The interest
earned on these investments is paid to Common Stock
shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share
net asset value of the Fund's Common Stock. However,
in order to benefit Common Stock shareholders, the
yield curve must be positively sloped; that is, short-
term interest rates must be lower than long-term
interest rates. At the same time, a period of generally
declining interest rates will benefit Common Stock
shareholders. If either of these conditions change,
then the risks of leveraging will begin to outweigh
the benefits.
To illustrate these concepts, assume a fund's Common
Stock capitalization of $100 million and the issuance of
Preferred Stock for an additional $50 million, creating
a total value of $150 million available for investment
in long-term municipal bonds. If prevailing short-term
interest rates are approximately 3% and long-term
interest rates are approximately 6%, the yield curve
has a strongly positive slope. The fund pays dividends
on the $50 million of Preferred Stock based on the
lower short-term interest rates. At the same time, the
fund's total portfolio of $150 million earns the income
based on long-term interest rates.
<PAGE>
In this case, the dividends paid to Preferred Stock
shareholders are significantly lower than the income
earned on the fund's long-term investments, and
therefore the Common Stock shareholders are the
beneficiaries of the incremental yield. However, if
short-term interest rates rise, narrowing the
differential between short-term and long-term interest
rates, the incremental yield pick-up on the Common Stock
will be reduced. At the same time, the market value on
the fund's Common Stock (that is, its price as listed on
the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the
Common Stock's net asset value will reflect the full
decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not
fluctuate. In addition to the decline in net asset
value, the market value of the fund's Common Stock
may also decline.
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we
have abbreviated the names of many of the securities
according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
State Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Alabama--1.1% BBB Baa1 $ 8,750 Courtland, Alabama, Industrial Development Board, Industrial
Development Revenue Refunding Bonds (Champion International
Corporation), Series A, 7.20% due 12/01/2013 $ 8,944
Alaska--3.9% A+ Aa 12,285 Alaska State, Housing Finance Corporation, GO, Series B,
7% due 12/01/2027 12,603
Valdez, Alaska, Marine Terminal Revenue Refunding Bonds:
AA- A1 8,000 (British Petroleum Pipeline), Series B, 7% due 12/01/2025 8,399
AA- A1 9,635 (Sohio Pipeline), 7.125% due 12/01/2025 10,158
Arizona--0.2% AA P1 1,800 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont
Mining Corp.), VRDN, 2.95% due 12/01/2009 (b) 1,800
California--4.6% AAA Aaa 9,975 California State, GO, 5.50% due 3/01/2020 (h) 8,927
Los Angeles, California, Department of Water and Power,
Revenue Refunding Bonds (Electric Plant):
AA Aa 5,750 6.375% due 2/01/2020 5,746
AA Aa 5,500 Second Issue, 4.75% due 11/15/2019 4,406
Los Angeles, California, Wastewater System Revenue
Refunding Bonds:
A A1 7,730 Series C, 7.10% due 6/01/2018 8,247
AAA Aaa 4,000 Series D, 4.70% due 11/01/2017 (i) 3,208
NR NR 7,000 Orange County, California, Community Facilities District,
Special Tax No. 88-1 Revenue Bonds (Aliso Viejo Project),
Series A, 7.35% due 8/15/2018 7,024
Colorado--2.7% BBB+ Baa1 4,000 Colorado Health Facilities Authority Revenue Bonds
(P/SL Healthcare System Project), Series A, 6.875%
due 2/15/2023 3,894
Denver, Colorado, City and County Airport Revenue Bonds:
BBB Baa1 5,000 Series A, 7.25% due 11/15/2025 4,933
BBB Baa1 8,000 Series D, AMT, 7.75% due 11/15/2013 8,236
BBB Baa1 3,310 Series D, AMT, 7.75% due 11/15/2021 3,330
NR NR 1,650 Mountain Village, Colorado, Metropolitan District, San Miguel
County Refunding Bonds, UT, 7.95% due 12/01/2003 1,796
Connecticut--0.7% NR Baa1 1,000 Connecticut State, Health and Educational Facilities Authority
Revenue Bonds (The Griffin Hospital), Series A, 5.75% due 7/01/2023 846
AA- A1 1,500 Connecticut State, Special Tax Obligation Revenue Refunding
Bonds (Transportation Infrastructure), Series A, 5.25%
due 9/01/2006 1,429
NR NR 2,720 New Haven, Connecticut, Facilities Revenue Bonds
(Hill Health Corporation Project), 9.25% due 5/01/2017 2,957
<PAGE>
District of BBB Baa1 1,890 District of Columbia, Hospital Revenue Refunding Bonds
Columbia--0.2% (Metlantic--Washington Hospital Center), Series A, 7.125%
due 8/15/2019 1,928
Florida--0.8% A1+ VMIG1 1,100 Hillsborough County, Florida, IDA, PCR, Refunding
(Tampa Electric Company Project), VRDN, 3% due 5/15/2018 (b) 1,100
A- NR 5,000 Palm Beach County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Good Samaritan Health System), 6.20%
due 10/01/2011 4,809
NR VMIG1 100 Palm Beach County, Florida, Water and Sewer Revenue Bonds,
VRDN, 2.95% due 10/01/2011 (b) 100
A-1 VMIG1 400 Pinellas County, Florida, Health Facilities Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 3.10%
due 12/01/2015 (b) 400
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
State Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Georgia--2.4% NR NR $ 5,850 Atlanta, Georgia, Urban Residential Finance Authority, College
Facilities Revenue Bonds (Morris Brown College Project), 9.50%
due 6/01/2011 $ 5,499
AAA Aaa 10,000 Cobb-Marietta, Georgia, Coliseum and Exhibit Hall Authority
Revenue Bonds, 6.75% due 10/01/2001 (a)(e) 11,041
BBB+ NR 3,000 Tri-City Hospital Authority, Georgia, Hospital Revenue Bonds
(South Fulton Medical Center), 6.375% due 7/01/2016 2,746
Hawaii--2.0% Hawaii State, Housing, Finance and Development Corporation,
S/F Mortgage Purchase Revenue Bonds:
A Aa 5,500 AMT, Series A, 7% due 7/01/2011 5,600
A Aa 2,500 AMT, Series A, 7.10% due 7/01/2024 2,540
A Aa 5,500 Series B, 6.90% due 7/01/2016 5,585
A Aa 2,000 Series B, 7% due 7/01/2031 2,036
Idaho--0.6% AA NR 4,480 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT,
Series C-2, 7.15% due 7/01/2023 4,641
<PAGE>
Illinois--1.5% BBB Baa2 2,750 Illinois Development Financing Authority, PCR, Refunding
(Illinois Power Company Project), Series A, 7.375% due 7/01/2021 2,911
BBB+ NR 2,500 Illinois Educational Facilities Authority Revenue Bonds
(Chicago Osteopathic Health Systems), 7.25% due 5/15/2022 2,537
Illinois Health Facilities Authority Revenue Bonds:
A A 1,500 (Edward Hospital Association Project), 7% due 2/15/2022 1,539
A+ A1 5,000 Refunding (OSF Healthcare Systems), 6% due 11/15/2023 4,528
Indiana--1.1% A+ A1 7,000 Fort Wayne, Indiana, Hospital Authority, Revenue Refunding
Bonds (Parkview Memorial Hospital Inc. Project), 6.40%
due 11/15/2022 6,830
NR A 2,500 Indiana Health Facilities Financing Authority, Hospital Revenue
Refunding Bonds (Saint Anthony Medical Center), Series A,
7% due 10/01/2017 2,548
Iowa--1.3% A1+ NR 10,400 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds
(Cedar River Paper Company Project), Series A, VRDN,
3.15% due 7/01/2023 (b) 10,400
Kansas--1.1% AAA Aaa 8,300 Burlington, Kansas, PCR, Refunding (Kansas Gas and Electric
Company Project), 7% due 6/01/2031 (e) 8,818
Kentucky--2.7% BBB Baa1 2,500 Ashland, Kentucky, Solid Waste Revenue Bonds (Ashland Oil
Incorporated Project), AMT, 7.20% due 10/01/2020 2,586
AA- Aa2 2,000 Carroll County, Kentucky, Solid Waste Disposal Facilities
Revenue Bonds (Kentucky Utility Company Project), Series A,
AMT, 5.75% due 12/01/2023 1,814
Kenton County, Kentucky, Airport Board, Airport Special Facilities
Revenue Bonds (Delta Airlines Project), AMT, Series A:
BB Ba1 10,575 7.125% due 2/01/2021 10,153
BB Ba1 3,000 6.125% due 2/01/2022 2,564
Trimble County, Kentucky, PCR (Louisville Gas and Electric
Company), AMT, Series A:
AA Aa2 750 7.625% due 11/01/2000 (a) 861
AA Aa2 3,775 7.625% due 11/01/2020 4,087
Louisiana--4.6% NR Ba1 35,000 Lake Charles, Louisiana, Harbor and Terminal District,
Port Facilities Revenue Refunding Bonds (Trunkline Company
Project), 7.75% due 8/15/2022 37,217
Maine--1.3% AA- Aa 10,460 Maine Housing Authority, S/F Mortgage Acquisition Bonds,
Series 1, 7.15% due 11/01/2021 10,706
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
State Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Maryland--2.4% AA+ Aa $ 600 Anne Arundel County, Maryland, Refunding Bonds
(Consolidated Water and Sewer), 5.30% due 4/15/2017 $ 540
A-1+ VMIG1 400 Howard County, Maryland, BAN, VRDN, 3.10% due 7/01/1995 (b) 400
NR VMIG1 900 Maryland State, Health and Higher Education Revenue Bonds
(Pooled Loan Program), Series A, VRDN, 3.10% due 4/01/2035 (b) 900
A+ A1 7,000 Montgomery County, Maryland, PCR, Refunding (Potomac
Electric Power Company), 5.375% due 2/15/2024 6,083
Prince Georges County, Maryland, Hospital Revenue Bonds:
NR Aaa 4,500 (Dimensions Health Corporation), 7.25% due 7/01/2017 (a) 5,092
NR Baa 2,865 (Greater Southeast Healthcare Systems), 6.20% due 1/01/2008 2,760
NR Baa 3,500 (Greater Southeast Healthcare Systems), 6.375% due 1/01/2023 3,255
Massachusetts--5.3% A+ Aaa 8,500 Massachusetts Bay Transportation Authority, Massachusetts,
General Transportation Systems Revenue Bonds, Series A,
7% due 3/01/2001 (a) 9,438
Massachusetts State, Health and Educational Facilities
Authorities Revenue Refunding Bonds:
A+ A1 3,850 (Boston College), Series K, 5.25% due 6/01/2023 3,280
A- NR 2,000 (Jordan Hospital), Series B, 6.875% due 10/01/2015 1,999
AAA Aaa 5,000 Massachusetts State, HFA, Residential Development Bonds,
Series C, 6.90% due 11/15/2021 (f) 5,109
BBB+ A 10,000 Massachusetts State, Municipal Wholesale Electric Company,
Power Supply System Revenue Bonds, Series D, 6.125% due 7/01/2019 9,537
A A 17,000 Massachusetts State, Water Reserve Authority, GO, Refunding,
Series B, 5% due 3/01/2022 13,773
Michigan--0.7% AA- A 5,575 Michigan State, Building Authority Revenue Refunding Bonds,
Series I, 6.75% due 10/01/2011 5,807
Minnesota--3.6% A+ A1 10,000 Minnesota State, HFA, Housing Development Bonds, Series A,
6.95% due 2/01/2014 10,212
AA+ Aa 3,495 Minnesota State, HFA, S/F Mortgage Bonds, AMT, Series A, 7.05%
due 7/01/2022 3,572
Saint Paul, Minnesota, Housing and Redevelopment Authority,
Hospital Revenue Bonds (Healtheast Project):
BBB- Baa 4,000 Refunding, Series A, 6.625% due 11/01/2017 3,780
BBB- Baa 6,000 Series B, 6.625% due 11/01/2017 5,670
BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International
Corporation), 6.95% due 10/01/2012 5,816
<PAGE>
Mississippi--2.6% A A2 17,750 Lowndes County, Mississippi, Solid Waste Disposal and
PCR, Refunding (Weyerhaeuser Company Project), Series A, 6.80%
due 4/01/2022 18,596
NR Baa 2,615 Mississippi Hospital Equipment and Facilities Authority Revenue
Bonds (Riley Memorial Hospital), Series B, 7.125% due 5/01/2022 2,627
Missouri--0.4% BBB- NR 3,000 Joplin, Missouri, IDA, Hospital Facilities Revenue Refunding and
Improvement Bonds (Tri-State Osteopathic), 8.25% due 12/15/2014 3,239
New Jersey--3.8% NR Baa 4,050 Atlantic County, New Jersey, Utilities Authority, Solid Waste
Revenue Bonds, 7.125% due 3/01/2016 4,091
Camden County, New Jersey, Pollution Control Financing
Authority, Solid Waste Resource Recovery Revenue Bonds, AMT:
BBB+ Baa1 2,500 Series A, 7.50% due 12/01/2010 2,556
BBB+ Baa1 7,000 Series B, 7.50% due 12/01/2009 7,158
AAA NR 9,500 New Jersey State, Housing and Mortgage Financing Agency,
M/F Housing Revenue Refunding Bonds (Presidential Plaza),
7% due 5/01/2030 (d) 9,874
AA- A1 8,000 Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, Ninety-First Series, 5.20% due 11/15/2016 6,965
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
State Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New Mexico--1.5% Farmington, New Mexico, PCR, Refunding, Series A:
BB Ba2 $ 5,000 (Public Service Company--San Juan Project), 6.40%
due 8/15/2023 $ 4,491
A+ Aa3 6,850 (Southern California Edison Company), 7.20% due 4/01/2021 7,261
<PAGE>
New York--15.4% BBB Aaa 7,000 Metropolitan Transportation Authority, New York, Service Contract
Bonds (Commuter Facilities), 7.125% due 7/01/2001 (a) 7,858
Metropolitan Transportation Authority, New York, Service Contract
Revenue Refunding Bonds, Series 5:
BBB Baa1 3,590 (Commuter Facilities), 6.90% due 7/01/2005 3,761
BBB Baa1 6,100 (Transit Facilities), 6.90% due 7/01/2005 6,390
New York City, New York, GO:
A- Baa1 2,000 Series A, UT, 7.75% due 8/15/2008 2,202
A- Baa1 4,600 Series A, UT, 7.75% due 8/15/2012 5,051
A- Baa1 5,000 Series A, UT, 7.75% due 8/15/2016 5,490
A- Baa1 15,000 Series B, UT, 7.75% due 2/01/2010 16,484
A- Baa1 1,555 Series B, UT, 7.75% due 2/01/2013 1,709
A- Baa1 5,000 Series C, Subseries C-1, 7.50% due 8/01/2021 5,436
NR NR 1,800 New York City, New York, Industrial Development Agency
Revenue Bonds, AMT, VRDN, 3.05% due 11/01/2015 (b) 1,800
SP-1 MIG1++ 3,000 New York City, New York, Municipal Water Finance Authority,
Water and Sewer System, BAN, Series A, 3.75% due 12/15/1994 3,009
New York State, Energy Research and Development Authority,
Electric Facilities Revenue Bonds (Con Edison Co.
of New York, Inc. Project), AMT:
A+ Aa3 5,000 Series A, 7.50% due 1/01/2026 5,337
A+ Aa3 7,000 Series C, 7.25% due 11/01/2024 7,434
A Aa 24,200 New York State, Environmental Facilities Corporation, PCR
(State Water Revolving Fund), Series E, 6.875% due 6/15/2010 25,409
New York State, Local Government Assistance Corporation Revenue
Bonds:
A A 14,360 Series B, 6.25% due 4/01/2021 14,084
AAA Aaa 5,000 Series C, 7% due 4/01/2001 (a) 5,590
NR Aaa 5,000 Series D, 7% due 4/01/2002 (a) 5,613
North Carolina--3.9% North Carolina HFA, S/F Revenue Bonds:
A+ Aa 15,520 Refunding, Series S, 6.95% due 3/01/2017 16,031
A+ Aa 5,385 Series T, AMT, 7.05% due 9/01/2020 5,522
A A 10,085 North Carolina Municipal Power Agency No. 1, Electric Revenue
Refunding Bonds (Catawba), 6.25% due 1/01/2017 9,892
North Dakota--0.5% A+ Aa 4,090 North Dakota State, HFA, S/F Mortgage Revenue Bonds, Series A,
7% due 7/01/2023 4,223
Ohio--0.3% BBB- Baa 2,000 Montgomery County, Ohio, Health Systems Revenue Bonds
(Franciscan Sisters of the Poor), Series B-1, 8.10% due 7/01/2018 2,167
Oregon--0.0% A-1 VMIG1 200 Medford, Oregon, Hospital Facilities Authority Revenue Bonds
(Gross-Rogue Health Services), VRDN, 3.05% due 10/01/2016 (b) 200
Pennsylvania--1.1% AA- A1 10,000 Pennsylvania State University, Revenue Refunding Bonds,
Second Series, 5.50% due 8/15/2016 9,026
South Carolina--3.7% A- A1 7,000 Richland County, South Carolina, PCR, Refunding (Union Camp
Corporation Project), Series C, 6.55% due 11/01/2020 7,047
A+ Aaa 20,125 South Carolina State, Public Service Authority, Revenue Refunding
Bonds (Santee Cooper), Series B, 7.10% due 7/01/2001 (a) 22,563
South Dakota--0.3% BBB Baa 2,500 South Dakota State, Health and Educational Facilities Authority,
Revenue Refunding Bonds (Prairie Lakes Health Care),
7.25% due 4/01/2022 2,532
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
State Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Tennessee--0.3% NR NR $ 1,885 Knox County, Tennessee, Health, Educational, and Housing
Facilities Board, Hospital Facilities Revenue Bonds (Baptist Health
Systems of East Tennessee), 8.50% due 4/15/2004 $ 2,018
Texas--11.8% BBB Baa2 5,000 Brazos River Authority, Texas, PCR (Texas Utilities Electric
Company Project), Series A, AMT, 7.875% due 3/01/2021 5,375
BBB A 3,900 Ector County, Texas, Hospital District Revenue Bonds (Medical
Center Hospital), 7.30% due 4/15/2012 3,991
BBB Baa1 8,400 Gulf Coast, Texas, Waste Disposal Authority Revenue Bonds
(Champion International Corporation), AMT, 7.45% due 5/01/2026 8,710
A A2 7,000 Matagorda County, Texas, Navigational District No. 1, PCR
(Central Power and Light Company Project), 7.50% due 12/15/2014 7,530
AAA VMIG1 7,800 North Texas, Higher Education Authority Incorporated, Student Loan
Revenue Bonds, Series C, AMT, VRDN, 3.35% due 4/01/2020 (b)(c) 7,800
Port Corpus Christi Authority, Texas, Nueces County, PCR
(Hoechst Celanese Corporation Project):
AA- A2 10,000 AMT, 6.875% due 4/01/2017 10,248
AA- A2 9,600 Refunding, 7.50% due 8/01/2012 10,424
AA- A2 5,000 Red River Authority, Texas, PCR (Hoechst Celanese Corporation
Project), AMT, 6.875% due 4/01/2017 5,124
Texas National Research Laboratory, Community Financing
Corporation, Lease Revenue Bonds (Superconducting Super
Collider Project):
A- A 10,000 6.95% due 12/01/2012 10,250
A- A 16,900 7.10% due 12/01/2021 17,323
Travis County, Texas, Housing Finance Corporation, Residential
Mortgage Revenue Refunding Bonds, Series A (f)(g):
AAA NR 1,965 7% due 12/01/2011 2,018
AAA NR 5,070 7.05% due 12/01/2025 5,214
Utah--0.3% AA NR 2,440 Utah State, HFA, S/F Mortgage Revenue Bonds, AMT, Series E-2,
7.15% due 7/01/2024 2,513
Virginia--1.0% AA+ Aa 8,125 Virginia State, Housing Development Authority, Commonwealth
Mortgage Revenue Bonds, Series A, 7.10% due 1/01/2025 8,405
Washington--4.9% Washington State, Public Power Supply Systems Revenue
Refunding Bonds:
AA Aa 9,235 (Nuclear Project No. 1), Series A, 7% due 7/01/2011 9,636
AA Aa 19,775 (Nuclear Project No. 1), Series A, 6.875% due 7/01/2017 20,210
AA Aa 5,000 (Nuclear Project No. 2), Series A, 6.30% due 7/01/2012 4,920
AA Aa 5,000 (Nuclear Project No. 2), Series B, 7% due 7/01/2012 5,165
<PAGE>
West Virginia--1.6% BBB+ A3 7,500 Mason County, West Virginia, PCR, Refunding (Appalachian
Power Company Project), Series I, 6.85% due 6/01/2022 7,526
BBB+ Baa1 5,500 Randolph County, West Virginia, Building Community Hospital
Revenue Refunding and Improvement Bonds (Davis Memorial
Hospital Project), Series A, 7.65% due 11/01/2021 5,772
Wisconsin--0.8% NR A 6,960 Wisconsin State, Health and Educational Facilities Authority
Revenue Bonds (Mercy Hospital of Janesville
Incorporated), 6.60% due 8/15/2022 6,743
Total Investments (Cost--$781,102)--99.0% 797,663
Other Assets Less Liabilities--1.0% 7,849
--------
Net Assets--100.0% $805,512
========
<FN>
(a) Prerefunded.
(b) The interest rate is subject to change periodically based
upon the prevailing market rate. The interest rates shown
are the rates in effect at April 30, 1994.
(c) AMBAC Insured.
(d) FHA Insured.
(e) MBIA Insured.
(f) FNMA Collateralized.
(g) GNMA Collateralized.
(h) FSA Insured.
(i) FGIC Insured.
++ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$781,102,373) (Note 1a) $797,662,913
Cash 38,014
Receivables:
Interest $ 15,615,922
Securities sold 2,799,550 18,415,472
------------
Deferred organization expenses (Note 1e) 33,322
Prepaid expenses and other assets 394,259
------------
Total assets 816,543,980
------------
Liabilities: Payables:
Securities purchased 8,839,474
Dividends to shareholders (Note 1g) 1,842,814
Investment adviser (Note 2) 319,540 11,001,828
------------
Accrued expenses 30,500
------------
Total liabilities 11,032,328
------------
Net Assets: Net assets $805,511,652
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (5,000 shares of AMPS* issued and
outstanding at $50,000 per share liquidation preference) $250,000,000
Common Stock, par value $.10 per share (37,061,414 shares issued
and outstanding) $ 3,706,141
Paid-in capital in excess of par 518,979,369
Undistributed investment income--net 5,503,638
Undistributed realized capital gains--net 10,761,964
Unrealized appreciation on investments--net 16,560,540
------------
Total--Equivalent to $14.99 net asset value per share of Common Stock
(market price--$14.00) 555,511,652
------------
Total capital $805,511,652
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1994
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 26,437,070
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 2,108,151
Commission fees (Note 4) 359,634
Transfer agent fees 61,616
Professional fees 41,057
Accounting services (Note 2) 32,174
Custodian fees 29,442
Printing and shareholder reports 26,274
Directors' fees and expenses 21,429
Listing fees 16,833
Pricing fees 7,826
Amortization of organization expenses (Note 1e) 5,093
Other 19,752
------------
Total expenses 2,729,281
------------
Investment income--net 23,707,789
------------
Realized & Realized gain on investments--net 10,762,014
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net (68,820,719)
(Loss)on ------------
Investments--Net Net Decrease in Net Assets Resulting from Operations $(34,350,916)
(Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1994 Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 23,707,789 $ 47,354,528
Realized gain on investments--net 10,762,014 9,699,758
Change in unrealized appreciation/depreciation on investments--net (68,820,719) 72,689,721
------------ ------------
Net increase (decrease) in net assets resulting from operations (34,350,916) 129,744,007
------------ ------------
Dividends & Investment income--net:
Distributions Common Stock (20,155,717) (40,472,606)
to Shareholders Preferred Stock (2,884,932) (5,537,729)
(Note 1g): Realized gain on investments--net:
Common Stock (8,671,336) (5,767,714)
Preferred Stock (1,008,475) (1,226,622)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (32,720,460) (53,004,671)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in reinvestment of
Transactions dividends and distributions 2,807,655 16,748,873
(Note 4): ------------ ------------
Net increase in net assets derived from capital stock transactions 2,807,655 16,748,873
------------ ------------
Net Assets: Total increase (decrease) in net assets (64,263,721) 93,488,209
Beginning of period 869,775,373 776,287,164
------------ ------------
End of period* $805,511,652 $869,775,373
============ ============
<FN>
*Undistributed investment income--net $ 5,503,638 $ 4,836,498
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six For the For the Period
Months Ended Year Ended Nov. 29, 1991++
Increase (Decrease) in Net Asset Value: April 30, 1994 Oct. 31, 1993 to Oct. 31, 1992
<S> <S> <C> <C> <C>
Per Share Operating Net asset value, beginning of period $ 16.80 $ 14.69 $ 14.18
Performance: ------------ ------------ ------------
Investment income--net .64 1.31 1.18
Realized and unrealized gain (loss) on investments--net (1.55) 2.27 .57
------------ ------------ ------------
Total from investment operations (.91) 3.58 1.75
------------ ------------ ------------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.54) (1.11) (.89)
Realized gain on investments--net (.24) (.16) --
------------ ------------ ------------
Total dividends and distributions to
Common Stock shareholders (.78) (1.27) (.89)
------------ ------------ ------------
Capital charge resulting from issuance of Common Stock -- -- (.02)
------------ ------------ ------------
Effect of Preferred Stock activity++++:
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.09) (.17) (.19)
Realized gain on investments--net (.03) (.03) --
Capital charge resulting from issuance of
Preferred Stock -- -- (.14)
------------ ------------ ------------
Total effect of Preferred Stock activity (.12) (.20) (.33)
------------ ------------ ------------
Net asset value, end of period $ 14.99 $ 16.80 $ 14.69
============ ============ ============
Market price per share, end of period $ 14.00 $ 16.75 $ 15.125
============ ============ ============
Total Investment Based on market price per share (12.22%)+++ 19.91% 7.06%+++
Return:** ============ ============ ============
Based on net asset value per share (6.29%)+++ 23.83% 9.99%+++
============ ============ ============
<PAGE>
Ratios to Average Expenses, net of reimbursement .65%* .64% .58%*
Net Assets:*** ============ ============ ============
Expenses .65%* .64% .65%*
============ ============ ============
Investment income--net 5.67%* 5.72% 6.08%*
============ ============ ============
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) $ 555,512 $ 619,775 $ 526,287
============ ============ ============
Preferred Stock outstanding, end of period
(in thousands) $ 250,000 $ 250,000 $ 250,000
============ ============ ============
Portfolio turnover 19.92% 25.58% 66.45%
============ ============ ============
Dividends Per Share Series A--Investment income--net $ 512 $ 1,119 $ 1,360
On Preferred Stock Series B--Investment income--net 680 1,108 1,379
Outstanding: Series C--Investment income--net 535 1,131 1,369
Series D--Investment income--net 519 1,111 1,375
Series E--Investment income--net 618 1,083 1,376
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly greater
or lesser than the net asset value, result in substantially different returns. Total
investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
+++Aggregate total investment return.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on December 23, 1991.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 as a non-
diversified, closed-end management investment
company. The Fund determines and makes available
for publication the net asset value of its Common Stock
on a weekly basis. The Fund's Common Stock is listed
on the New York Stock Exchange under the symbol
MYD. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Municipal bonds are
traded primarily in the over-the-counter markets
and are valued at the most recent bid price or yield
equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities.
Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the
close of such exchanges. Options, which are traded on
exchanges, are valued at their last sale price as of the
close of such exchanges or, lacking any sales, at the
last available bid price. Short-term investments with
remaining maturities of sixty days or less are valued
at amortized cost, which approximates market. Securi-
ties for which market quotations are not readily avail-
able are valued at their fair value as determined
in good faith by or under the direction of the Board
of Directors of the Fund.
(b) Financial futures contracts--The Fund may
purchase or sell interest rate futures contracts and
options on such futures contracts for the purpose of
hedging the market risk on existing securities or the
intended purchase of securities. Futures contracts are
contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and
maintains as collateral such initial margin as required
by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive
from or pay to the broker an amount of cash equal to
the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records
a realized gain or loss equal to the difference between
the value of the contract at the time it was opened
and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply
with the requirements of the Internal Revenue Code
applicable to regulated investment companies and
to distribute substantially all of its taxable income to
its shareholders. Therefore, no Federal income tax
provision is required.
<PAGE>
(d) Security transactions and investment income--
Security transactions are recorded on the dates the
transactions are entered into (the trade dates). Interest
income is recognized on the accrual basis. Discounts
and market premiums are amortized into interest
income. Realized gains and losses on security trans-
actions are determined on the identified cost basis.
(e) Deferred organization expenses and offering
expenses--Deferred organization expenses are amor-
tized on a straight-line basis over a five-year period.
(f) Non-income producing investments--Written
and purchased options are non-income producing
investments.
(g) Dividends and distributions--Dividends from net
investment income are declared and paid monthly.
Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory
Agreement with Fund Asset Management, L.P. ("FAM").
Effective January 1, 1994, the investment advisory
business of FAM was reorganized from a corporation
to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested
with Merrill Lynch & Co., Inc. ("ML & Co."). The
general partner of FAM is Princeton Services, Inc., an
indirect wholly-owned subsidiary of ML & Co. The
limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also
an indirect wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's
portfolio and provides the necessary personnel, facil-
ities, equipment and certain other services necessary
to the operations of the Fund. For such services, the
Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM
at cost.
Certain officers and/or directors of the Fund are officers
and/or directors of FAM, MLIM, Merrill Lynch, Pierce,
Fenner & Smith Inc. ("MLPF&S"), and/or ML & Co.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding
short-term securities, for the six months ended April
30, 1994 were $169,829,764 and $162,282,339,
respectively.
Net realized and unrealized gains (losses) as of
April 30, 1994 were as follows:
Realized Unrealized
Gains Gains (Losses)
Long-term investments $ 8,210,727 $ 16,568,496
Short-term investments -- (7,956)
Financial futures contracts 2,551,287 --
----------- ------------
Total $10,762,014 $ 16,560,540
=========== ============
As of April 30, 1994, net unrealized appreciation for
Federal income tax purposes aggregated $16,560,540,
of which $28,370,830 related to appreciated securities
and $11,810,290 related to depreciated securities. The
aggregate cost of investments at April 30, 1994 for
Federal income tax purposes was $781,102,373.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares
of capital stock, including Preferred Stock, par value
$.10 per share, all of which were initially classified as
Common Stock. The Board of Directors is authorized,
however, to reclassify any unissued shares of capital
stock without approval of the holders of Common Stock.
Common Stock
For the six months ended April 30, 1994, shares issued
and outstanding increased by 169,647 to 37,061,414 as
a result of dividend reinvestment. At April 30, 1994,
total paid-in capital amounted to $522,685,510.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of
Preferred Stock of the Fund that entitle their holders
to receive cash dividends at an annual rate that may
vary for the successive dividend periods. The yields
in effect at April 30, 1994 were as follows: Series A,
2.90%; Series B, 3.14%; Series C, 3.03%; Series D,
2.68%; and Series E, 3.20%.
<PAGE>
For the six months ended April 30, 1994, there were 5,000
AMPS shares authorized, issued and outstanding with a
liquidation preference of $50,000 per share, plus accumu-
lated and unpaid dividends of $639,675.
The Fund pays commissions to certain broker-dealers
at the end of each auction at the annual rate of
one-quarter of 1% calculated on the proceeds of each
auction. For the six months ended April 30, 1994,
MLPF&S, an affiliate of MLIM, earned $418,783
as commissions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Directors de-
clared an ordinary income dividend to Common Stock
shareholders in the amount of $0.084517 per share,
payable on May 27, 1994 to shareholders of record as
of May 17, 1994.
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Net Unrealized Dividends/Distributions
Investment Realized Gains Net Investment Income Capital Gains
For the Quarter Income Gains (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $.33 $ .09 $ 1.21 $.27 $.06 -- --
August 1, 1992 to October 31, 1992 .33 -- (1.07) .28 .05 -- --
November 1, 1992 to January 31, 1993 .34 .05 .69 .28 .05 $.16 $.03
February 1, 1993 to April 30, 1993 .33 .11 .55 .27 .04 -- --
May 1, 1993 to July 31, 1993 .32 .04 .32 .28 .04 -- --
August 1, 1993 to October 31, 1993 .32 .07 .44 .28 .04 -- --
November 29, 1993 to January 31, 1994 .33 .20 (.06) .27 .05 .24 .03
February 1, 1994 to April 30, 1994 .31 .10 (1.79) .27 .04 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $15.91 $14.48 $15.75 $14.75 2,248
August 1, 1992 to October 31, 1992 15.69 14.58 16.125 14.75 2,759
November 1, 1992 to January 31, 1993 15.31 14.71 15.875 14.75 2,406
February 1, 1993 to April 30, 1993 16.32 15.24 16.375 15.50 3,060
May 1, 1993 to July 31, 1993 16.45 15.85 16.75 15.625 3,166
August 1, 1993 to October 31, 1993 16.99 16.28 16.875 16.25 3,357
November 29, 1993 to January 31, 1994 16.82 16.35 16.75 15.125 3,287
February 1, 1994 to April 30, 1994 16.65 14.63 16.50 13.50 3,670
<FN>
*Calculations are based upon shares of Common Stock outstanding at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
