MUNIYIELD
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1995
Officers and Directors
Arthur Zeikel, President and 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
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
<PAGE>
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYD
This report, including the financial information herein, is
transmitted to the shareholders of MuniYield Fund, Inc. for their
information. It is not a prospectus, circular or representation
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 representation 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.
DEAR SHAREHOLDER
For the six months ended April 30, 1995, the Common Stock of
MuniYield Fund, Inc. earned $0.502 per share income dividends, which
included earned and unpaid dividends of $0.080. This represents a
net annualized yield of 6.86%, based on a month-end net asset value
of $14.76 per share. Over the same period, the total investment
return on the Fund's Common Stock was +8.66%, based on a change in
per share net asset value from $14.35 to $14.76, and assuming
reinvestment of $0.510 per share income dividends and $0.219 per
share capital gains distributions.
<PAGE>
For the six months ended April 30, 1995, the Fund's Auction Market
Preferred Stock had an average yield as follows: Series A, 4.56%;
Series B, 3.82%; Series C, 4.16%; Series D, 4.14%; and Series E,
3.66%.
The Environment
During the six months ended April 30, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
was reported to have increased at a revised 5.1% rate during the
final quarter of 1994, declines in other indicators such as new home
sales and durable goods orders registered thus far in 1995 have led
investors to anticipate that the economy is losing enough momentum
to keep inflation under control and preclude further significant
monetary policy tightening by the Federal Reserve Board. A further
indication of a slowing economy was the reported decline in the
Index of Leading Economic Indicators for March.
As US stock and bond markets have risen on more positive economic
news, the value of the US dollar has reached new lows relative to
the yen and the Deutschemark. Persistent trade deficits and exports
of capital from the United States have kept the US currency in a
decade-long decline relative to the Japanese and German currencies.
Over the longer term, since the United States has the highest
productivity among industrialized nations and among the lowest labor
costs, demand for US dollar-denominated assets may improve. However,
a reduction of the still-widening US trade deficit may be necessary
before the US dollar appreciates substantially relative to the yen
and the Deutschemark.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
The Municipal Market
During the six-month period ended April 30, 1995, the tax-exempt
bond market gradually recouped much of the losses sustained during
1994. Signs of a weakening domestic economy and ongoing moderate
inflationary pressures have fostered an environment of declining
interest rates. Since October 31, 1994, A-rated, uninsured municipal
revenue bond yields, as measured by the Bond Buyer Revenue Bond
Index, have declined over 65 basis points (0.65%) to close the six-
month period ended April 30, 1995 at 6.29%. Tax-exempt bond yields
initially continued to climb in late 1994, reaching a high of 7.37%
in late November 1994. Municipal bond yields have since declined
over 100 basis points from their recent highs and are presently
lower than they were a year ago. US Treasury bond yields have
experienced similar declines over the last six months to end the
April period at 7.34%.
<PAGE>
Much of the recent improvement in the tax-exempt bond market,
however, has occurred over the last three months. During this most
recent quarter, municipal bond yields have fallen approximately 50
basis points, while US Treasury bond yields declined only 35 basis
points. Tax-exempt bond yields declined more than their taxable
counterparts in recent months, largely in response to the
significant decline in new bond issuance in recent quarters. Over
the last six months, less than $60 billion in new long-term
municipal securities were underwritten, a decline of nearly 45%
versus the comparable period a year earlier. Issuance was
particularly low this past January and February, with monthly volume
of less than $8 billion. These levels are the lowest monthly totals
since the mid-1980s.
To compound the municipal market's already strong technical posture,
both institutional and individual investors have seen significant
cash inflows in recent months. These assets were derived from
regular coupon payments, bond maturities and the proceeds from early
bond calls and redemptions. It has been estimated that investors
received over $20 billion in principal redemptions and coupon income
in January 1995 alone. With monthly issuance in the $10 billion
range thus far this year, the current supply/demand imbalance has
dominated the municipal market and bond prices have risen
accordingly. The tax-exempt bond market's technical position is
likely to remain very strong throughout most of 1995. Investors are
expected to receive almost $40 billion in principal and coupon
payments on July 1, 1995. Investor proceeds from all sources have
been estimated to exceed $200 billion for all of 1995. Estimates of
total new bond issuance for 1995 have continued to be lowered with
most estimates now in the $125 billion range. Investors should find
it increasingly difficult to replace existing holdings as they
mature and to reinvest coupon income in such an environment.
<PAGE>
The municipal bond market's outperformance thus far this year caused
the tax-exempt market to become temporarily expensive relative to
its taxable counterpart in late April. Investor concerns regarding
the international currency situation and the future impact of
proposed revisions to US taxation policies upon the tax advantage
inherent to municipal bonds have combined to cause tax-exempt bond
yields to increase marginally in recent weeks. Municipal bond yields
have risen approximately 15 basis points from their lows in mid-
April 1995. Long-term US Treasury bond yields have remained
essentially stable. Such an underperformance by the tax-exempt bond
market is likely to be limited in duration. The recent increase in
tax-exempt bond yields has already begun to attract institutional
investors since some municipal bonds yielding in excess of 85% of US
Treasury bond yields are again available. Also, concerns regarding
the implication for municipal bonds' tax advantage resulting from
various proposed tax law changes (for example, flat-tax, value-added
tax or national sales tax) are all likely to quickly recede as
investors realize that such, if any, changes are unlikely to be
enacted before late 1996 at the earliest. Long-term investors will
also recall 1986 when similar tax proposals were made and tax-exempt
bond yields initially rose and then quickly fell. Investors are
likely to view the current situation as an opportunity to purchase
very attractively priced tax-advantaged products. This should cause
municipal bond yields to quickly return to their more historic
relationship.
Portfolio Strategy
During the six months ended April 30, 1995, MuniYield Fund, Inc.
fully participated in the fixed-income market rebound that began in
November 1994. Selective purchases of high-quality performance-
oriented securities enhanced the Fund's total return. However,
overall performance was dictated primarily by our portfolio strategy
which centered around maintaining an attractive and competitive
yield. Therefore, cash reserves were kept fairly low, averaging
close to 5% of net assets. Portfolio structure also figures
prominently in this income-oriented strategy. Issues bearing large
coupons provide not only an attractive current return but also some
protection from interest rate volatility. This insulating quality
becomes particularly valuable in the later stages of a rising
market. Given the Fund's potential for greater volatility as a
result of its use of leverage, we purchased these issues whenever
possible to seek to limit risk.
Leveraging continues to benefit Common Stock shareholders as the
municipal yield curve remains positively sloped. This allows the
Fund to generate an incrementally greater yield over what would
otherwise be available with conventional long-term tax-exempt
securities. However, should the spread between short-term and long-
term interest rates narrow, the benefits of leverage will diminish
and the yield on the Fund's Common Stock will be reduced. (For a
complete explanation of the benefits and risks of leveraging, see
the information provided below.)
<PAGE>
In terms of net assets, the Fund rose in value dramatically,
recouping much of what was lost in 1994 as well as demonstrating the
volatility inherent in this leveraged product. In terms of market
price, the change is even more notable as these positive returns
were accentuated by a marked narrowing in the discount to net asset
value.
Looking ahead, we have grown somewhat cautious regarding the
market's wholesale acceptance of the successfully engineered soft
landing for the economy. Signs of renewed economic momentum may be
forthcoming and, to the extent that the implications may prove
troublesome for fixed-income markets, a more defensive approach may
by warranted in the months ahead.
In Conclusion
We appreciate your ongoing interest in MuniYield Fund, Inc., and we
look forward to serving your investment needs and objectives in the
months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
June 1, 1995
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.
<PAGE>
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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Stock.
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 or eliminated completely. 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)
COP Certificates of Participation
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
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--1.2% BBB Baa1 $ 8,750 Courtland, Alabama, IDB, IDR, Refunding (Champion
International Corporation), Series A, 7.20% due 12/01/2013 $ 9,228
Alaska--3.9% A+ Aa 12,285 Alaska State, Housing Finance Corporation, GO, Series B, 7%
due 12/01/2027 12,582
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 10,157
Arizona--0.9% BB Ba2 6,550 Maricopa County, Arizona, Pollution Control Corporation, PCR,
Refunding (Public Service Company--Palo Verde), Series A,
6.375% due 8/15/2023 5,951
A1+ VMIG1++ 1,500 Phoenix, Arizona, GO, UT, VRDN, Series 1, 5% due 6/01/2019 (a) 1,500
California--4.8% A A1 7,730 Los Angeles, California, Wastewater System Revenue Refunding
Bonds, Series C, 7.10% due 6/01/2018 8,196
AAA NR* 5,000 Orange County, California, Community Facilities District,
Special Tax No. 88-1 Revenue Bonds (Aliso Viejo Project),
Series A, 7.35% due 8/15/2002 (b) 5,739
SP1+ MIG1++ 8,000 Santa Clara County, California, TRAN, UT, 4.25% due
7/07/1995 7,991
University of California Revenue Bonds (Multiple Purpose
Projects):
AAA Aaa 8,000 Refunding, Series C, 5% due 9/01/2023 (c) 6,707
AAA Aaa 10,000 Series D, 6.375% due 9/01/2019 (e) 10,129
Colorado--4.7% BBB+ Baa1 4,000 Colorado Health Facilities Authority Revenue Bonds
(P/SL Healthcare System Project), Series A, 6.875%
due 2/15/2023 3,849
Denver, Colorado, City and County Airport Revenue Bonds:
BB Baa 8,000 AMT, Series D, 7.75% due 11/15/2013 8,740
BB Baa 3,310 AMT, Series D, 7.75% due 11/15/2021 3,454
BB Baa 19,250 Series A, 7.25% due 11/15/2025 19,768
NR* NR* 1,650 Mountain Village, Colorado, Metropolitan District, San Miguel
County Refunding Bonds, UT, 7.95% due 12/01/2003 1,809
Connecticut-- NR* NR* 2,685 New Haven, Connecticut, Facilities Revenue Bonds
0.4% (Hill Health Corporation Project), 9.25% due 5/01/2017 2,866
District of B- NR* 4,000 District of Columbia, COP, 7.30% due 1/01/2013 3,906
Columbia--2.4% A1+ VMIG1++ 15,000 District of Columbia, General Fund Recovery Revenue
Bonds, VRDN, UT, Series B, 5.20% due 6/01/2003 (a) 15,000
</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>
Florida--1.1% AA Aa1 $10,000 Orlando, Florida, Utilities Commission, Water and Electric
Revenue Bonds, 5.125% due 10/01/2019 $ 8,712
Georgia--1.3% NR* NR* 5,765 Atlanta, Georgia, Urban Residential Finance Authority,
College Facilities Revenue Bonds (Morris Brown College
Project), 9.50% due 6/01/2011 6,111
AAA Aaa 4,200 Georgia Municipal Electric Authority, Special Obligation
Bonds (Fifth Crossover Series--Project One), 6.40%
due 1/01/2013 (c) 4,428
Hawaii--0.9% Hawaii State, Housing Finance and Development Corporation,
S/F Mortgage Purchase Revenue Bonds:
A Aa 1,945 AMT, Series A, 7% due 7/01/2011 2,028
A Aa 870 AMT, Series A, 7.10% due 7/01/2024 891
A Aa 3,040 Series B, 6.90% due 7/01/2016 3,129
A Aa 1,110 Series B, 7% due 7/01/2031 1,139
Idaho--1.3% Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT:
AAA NR* 6,000 Senior Series A, 6.70% due 7/01/2027 6,004
AA NR* 4,215 Senior Series C-2, 7.15% due 7/01/2023 4,346
Illinois--1.7% BBB Baa2 2,750 Illinois Development Finance Authority, PCR, Refunding
(Illinois Power Company Project), Series A, 7.375%
due 7/01/2021 2,887
BBB+ NR* 2,500 Illinois Educational Facilities Authority Revenue Bonds
(Chicago Osteopathic Health Systems), 7.25% due 5/15/2022 2,511
Illinois Health Facilities Authority Revenue Bonds:
A A 1,500 (Edward Hospital Association Project), 7% due 2/15/2022 1,533
A+ A1 4,250 Refunding (OSF Healthcare Systems), 6% due 11/15/2023 3,919
BBB- NR* 2,625 Refunding (Saint Elizabeth's Hospital of Chicago),
7.75% due 7/01/2016 2,672
Indiana--1.6% NR* A 1,150 Indiana Health Facilities Financing Authority, Hospital,
Revenue Refunding Bonds (Saint Anthony Medical Center),
Series A, 7% due 10/01/2017 1,176
A+ NR* 11,775 Indianapolis, Indiana, Local Public Improvement Bond Bank,
Revenue Refunding Bonds, Series D, 6.75% due 2/01/2020 12,069
<PAGE>
Kansas--1.1% AAA Aaa 8,300 Burlington, Kansas, PCR, Refunding (Kansas Gas and Electric
Company Project), 7% due 6/01/2031 (e) 8,917
Kentucky--2.4% BBB Baa1 2,500 Ashland, Kentucky, Solid Waste Revenue Bonds (Ashland
Oil Incorporated Project), AMT, 7.20% due 10/01/2020 2,558
A1+ VMIG1++ 6,300 Daviess County, Kentucky, Solid Waste Disposal Facilities
Revenue Bonds (Scott Paper Co. Project), VRDN, AMT, Series A,
5.05% due 12/01/2023 (a) 6,300
BB Ba1 5,300 Kenton County, Kentucky, Airport Board, Special Facilities
Revenue Bonds (Delta Airlines Project), AMT, Series A,
7.50% due 2/01/2020 5,411
Trimble County, Kentucky, PCR (Louisville Gas and Electric
Company), AMT, Series A:
AA Aaa 750 7.625% due 11/01/2000 (b) 855
AA Aa2 3,675 7.625% due 11/01/2020 4,012
Louisiana--4.7% NR* Baa3 35,000 Lake Charles, Louisiana, Harbor and Terminal District,
Port Facilities Revenue Refunding Bonds (Trunkline Company
Project), 7.75% due 8/15/2022 37,670
Maine--1.4% AA- Aa 10,460 Maine Housing Authority, S/F Mortgage Acquisition Bonds,
Series 1, 7.15% due 11/01/2021 10,878
</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>
Maryland--0.6% NR* Aaa $ 4,500 Prince Georges County, Maryland, Hospital Revenue Bonds
(Dimensions Health Corporation), 7.25% due 7/01/2002 (b) $ 5,135
Massachusetts A+ Aaa 8,500 Massachusetts Bay Transportation Authority Revenue Bonds
- --2.6% (Massachusetts General Transportation Systems), Series A, 7%
due 3/01/2001 (b) 9,451
NR* Aa 3,000 Massachusetts State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Daughters of Charity),
Series D, 6% due 7/01/2009 2,958
A+ Aa 2,915 Massachusetts State, HFA, Housing Revenue Bonds, AMT,
Series 29, 6.75% due 6/01/2026 2,935
AAA Aaa 5,000 Massachusetts State, HFA, Residential Development Bonds,
Series C, 6.90% due 11/15/2021 (f) 5,173
<PAGE>
Michigan--1.1% AA- A 5,575 Michigan State, Building Authority Revenue Refunding Bonds,
Series I, 6.75% due 10/01/2011 5,893
NR* P1 2,800 Monroe County, Michigan, Economic Development Corporation,
Limited Obligation Revenue Refunding Bonds (Detroit Edison
Co.), VRDN, Series CC, 4.90% due 10/01/2024 (a) 2,800
Minnesota--2.6% AA- A1 1,000 Minneapolis, Minnesota, Community Development Agency, PCR
(Northern States Power Co. Project), VRDN, 4.70% due
3/01/2011 (a) 1,000
A+ A1 10,000 Minnesota State, HFA, Housing Development Bonds, Series A,
6.95% due 2/01/2014 10,449
AA+ Aa 3,410 Minnesota State, HFA, S/F Mortgage Bonds, AMT, Series A, 7.05%
due 7/01/2022 3,511
BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International
Corporation), 6.95% due 10/01/2012 5,895
Mississippi-- A A2 17,750 Lowndes County, Mississippi, Solid Waste Disposal and PCR,
2.4% Refunding (Weyerhaeuser Company Project), Series A, 6.80%
due 4/01/2022 18,892
NR* P1 400 Perry County, Mississippi, PCR, Refunding (Leaf River
Forest Project), VRDN, 4.85% due 3/01/2002 (a) 400
Missouri--0.4% BBB- NR* 2,935 Joplin, Missouri, IDA, Hospital Facilities Revenue Refunding and
Improvement Bonds Tri-State Osteopathic, 8.25% due 12/15/2014 2,952
New Jersey--2.9% NR* Ba 4,050 Atlantic County, New Jersey, Utilities Authority, Solid Waste
Revenue Bonds, 7.125% due 3/01/2016 3,886
Camden County, New Jersey, Pollution Control Financing
Authority, Solid Waste Resource Recovery Revenue Bonds, AMT:
BBB+ Ba 2,500 Series A, 7.50% due 12/01/2010 2,416
BBB+ Ba 7,000 Series B, 7.50% due 12/01/2009 6,783
AAA NR* 9,500 New Jersey State Housing and Mortgage Finance Agency, M/F
Housing Revenue Refunding Bonds (Presidential Plaza),
7% due 5/01/2030 (d) 9,813
New Mexico--2.0% A1+ P1 2,400 Farmington, New Mexico, PCR (Arizona Public Service Co.),
VRDN, AMT, Series C, 5.05% due 9/01/2024 (a) 2,400
Farmington, New Mexico, PCR, Refunding, Series A:
BB Ba2 8,000 (Public Service Company--San Juan Project), 6.40%
due 8/15/2023 7,212
A+ Aa3 5,850 (Southern California Edison Company), 7.20% due 4/01/2021 6,204
New York--14.1% BBB Baa1 6,100 Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds (Transit Facilities), Series 5,
6.90% due 7/01/2005 6,366
</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>
New York New York City, New York, GO, UT:
(concluded) A- Baa1 $ 2,000 Series A, 7.75% due 8/15/2008 $ 2,165
A- Baa1 4,600 Series A, 7.75% due 8/15/2012 4,978
A- Baa1 5,000 Series A, 7.75% due 8/15/2016 5,411
A- Baa1 15,000 Series B, 7.75% due 2/01/2010 16,207
A- Baa1 1,555 Series B, 7.75% due 2/01/2013 1,680
A1+ VMIG1++ 700 Series B, Sub-Series B10, VRDN, 4.625% due 8/15/2024 (a) 700
A- Baa1 5,000 Series C, Sub-Series C-1, 7.50% due 8/01/2021 5,314
BBB+ Baa1 5,000 New York State Dormitory Authority Revenue Bonds (State
University Educational Facilities), Series B, 5.75% due 5/15/2024 4,531
New York State Energy Research and Development Authority,
Electric Facilities Revenue Bonds (Con Edison Co. of
New York, Inc. Project), AMT:
A+ A1 5,000 Series A, 7.50% due 1/01/2026 5,333
A+ A1 7,000 Series C, 7.25% due 11/01/2024 7,357
New York State Energy Research and Development Authority,
PCR, VRDN, AMT (Niagara-Mohawk Power Co. Project) (a):
A1+ A2 700 Series A, 5.40% due 12/01/2023 700
A1+ NR* 4,200 Series B, 5.40% due 7/01/2027 4,200
A Aa 24,200 New York State Environmental Facilities Corporation, PCR
(State Water-Revolving Fund), Series E, 6.875% due 6/15/2010 26,033
New York State Local Government Assistance Corporation
Revenue Bonds:
A A 5,000 Series A, 6.50% due 4/01/2020 5,092
AAA Aaa 5,000 Series D, 7% due 4/01/2002 (b) 5,619
A+ Aa 12,000 Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds (General Purpose), Series A, 5% due 1/01/2015 10,461
North Carolina NR* Aa2 600 Halifax County, North Carolina, Industrial Facilities and
- --2.8% Pollution Control Financing Authority Revenue Bonds (Exempt
Facilities-Westmoreland), VRDN, 5.25% due 12/01/2019 (a) 600
North Carolina HFA, S/F Revenue Bonds:
A+ Aa 5,385 AMT, Series T, 7.05% due 9/01/2020 5,552
A+ Aa 15,520 Refunding, Series S, 6.95% due 3/01/2017 16,173
North Dakota A+ Aa 4,090 North Dakota State, HFA, S/F Mortgage Revenue Bonds,
- --0.5% Series A, 7% due 7/01/2023 4,204
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 2,108
<PAGE>
Pennsylvania Pennsylvania Convention Center Authority, Revenue
- --5.6% Refunding Bonds, Series A:
BBB- Baa 9,675 6.70% due 9/01/2014 9,697
BBB- Baa 7,325 6.75% due 9/01/2019 7,341
NR* NR* 10,500 Pennsylvania Economic Development Financing Authority,
Recycling Revenue Bonds (Ponderosa Fibres Project), AMT,
Series A, 9.25% due 1/01/2022 10,549
AA- A1 10,000 Pennsylvania State University, Revenue Refunding Bonds,
Second Series, 5.50% due 8/15/2016 9,357
Philadelphia, Pennsylvania, Hospitals and Higher Education
Facilities Authority, Hospital Revenue Bonds:
A1+ VMIG1++ 200 (Children's Hospital of Philadelphia Project), VRDN, 4.75%
due 3/01/2027 (a) 200
A- Baa1 7,500 Refunding (Temple University Hospital), Series A, 6.625%
due 11/15/2023 7,317
</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>
South Carolina A1+ VMIG1++ $ 2,300 Berkeley County, South Carolina, Pollution Control Facilities,
- --2.0% Revenue Refunding Bonds (Amoco Chemical Co. Project),
VRDN, 4.90% due 7/01/2012 (a) $ 2,300
A- A1 2,500 Richland County, South Carolina, PCR, Refunding (Union Camp
Corporation Project), Series C, 6.55% due 11/01/2020 2,519
AAA Aaa 10,125 South Carolina State, Public Service Authority, Revenue
Refunding Bonds (Santee Cooper), Series B, 7.10%
due 7/01/2001 (b) 11,356
South Dakota-- BBB Baa 2,500 South Dakota State, Health and Educational Facilities
0.3% Authority, Revenue Refunding Bonds (Prairie Lakes
Health Care), 7.25% due 4/01/2022 2,482
Tennessee--0.2% NR* NR* 1,765 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 1,894
<PAGE>
Texas--14.7% BBB Baa2 5,000 Brazos River Authority, Texas, PCR (Texas Utilities Electric
Company Project), AMT, Series A, 7.875% due 3/01/2021 5,423
BBB A 3,800 Ector County, Texas, Hospital District Revenue Bonds (Medical
Center Hospital), 7.30% due 4/15/2012 3,959
BBB Baa1 8,400 Gulf Coast, Texas, Waste Disposal Authority Revenue Bonds
(Champion International Corporation), AMT, 7.45%
due 5/01/2026 8,825
Harris County, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds, VRDN (a):
A1+ NR* 1,800 (Methodist Hospital), 4.90% due 12/01/2025 1,800
A1+ NR* 11,700 (Saint Luke's Episcopal Hospital), Series D,
4.90% due 2/15/2016 11,700
AA+ Aa 10,000 Harris County, Texas, Toll Road Sub-Lien, Revenue Refunding
Bonds, UT, 6.75% due 8/01/2014 10,649
A A2 7,000 Matagorda County, Texas, Navigational District No. 1, PCR
(Central Power and Light Company Project), 7.50%
due 12/15/2014 7,644
Port Corpus Christi Authority, Texas, Nueces County, PCR
(Hoechst Celanese Corporation Project):
AA- A2 10,000 AMT, 6.875% due 4/01/2017 10,230
AA- A2 9,600 Refunding, 7.50% due 8/01/2012 10,333
AA- A2 5,000 Red River Authority, Texas, PCR (Hoechst Celanese
Corporation Project), AMT, 6.875% due 4/01/2017 5,115
AA Aa1 2,500 San Antonio, Texas, Electric and Gas Revenue Refunding
Bonds, Series B, 6.50% due 2/01/2012 2,564
NR* VMIG1++ 5,500 Southwest Texas, Higher Education Authority Incorporated,
Revenue Refunding Bonds (Southern Methodist University),
Crossover Series, VRDN, 4.90% due 7/01/2015 (a) 5,500
Texas National Research Laboratory Commission Financing
Corporation, Lease Revenue Bonds (Superconducting Super
Collider Project):
A- A 10,000 6.95% due 12/01/2012 10,150
A- A 16,900 7.10% due 12/01/2021 17,154
SP1+ MIG1++ 1,800 Texas State, TRAN, UT, 5% due 8/31/1995 1,804
Travis County, Texas, Housing Finance Corporation,
Residential Mortgage Revenue Refunding Bonds, Series A (f)(g):
AAA NR* 1,020 7% due 12/01/2011 1,069
AAA NR* 2,805 7.05% due 12/01/2025 2,920
</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>
Utah--0.3% AA NR* $ 2,180 Utah State, HFA, S/F Mortgage Revenue Bonds, AMT,
Series E-2, 7.15% due 7/01/2024 $ 2,238
Virginia--1.1% AA+ Aa1 8,125 Virginia State, Housing Development Authority, Commonwealth
Mortgage Revenue Bonds, Series A, 7.10% due 1/01/2025 8,487
Washington--3.1% Washington State, Public Power Supply System, Revenue
Refunding Bonds:
AA Aa 9,235 (Nuclear Project No. 1), Series A, 7% due 7/01/2011 9,613
AA Aa 5,000 (Nuclear Project No. 1), Series A, 6.875% due 7/01/2017 5,162
AA Aa 5,000 (Nuclear Project No. 2), Series A, 6.30% due 7/01/2012 4,961
AA Aa 5,000 (Nuclear Project No. 2), Series B, 7% due 7/01/2012 5,205
West Virginia BBB+ A3 7,500 Mason County, West Virginia, PCR, Refunding (Appalachian
- --1.7% Power Company Project), Series I, 6.85% due 6/01/2022 7,724
BBB+ Baa1 5,500 Randolph County, West Virginia, Building Commission Hospital
Revenue Refunding and Improvement Bonds (Davis Memorial
Hospital Project), Series A, 7.65% due 11/01/2021 5,666
Wisconsin--0.3% NR* A 2,710 Wisconsin State Health and Educational Facilities Authority
Revenue Bonds (Mercy Hospital of Janesville Incorporated),
6.60% due 8/15/2022 2,728
Puerto Rico--0.9% A Baa 6,500 Puerto Rico Commonwealth, Aqueduct and Sewer Authority
Revenue Bonds, Series A, 7.875% due 7/01/2017 7,147
Total Investments (Cost--$753,831)--98.3% 783,851
Other Assets Less Liabilities--1.7% 13,255
--------
Net Assets--100.0% $797,106
========
<FN>
(a)The interest rate is subject to change periodically based upon
the prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1995.
(b)Prerefunded.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$753,831,040)
(Note 1a) $783,850,692
Interest receivable 14,730,478
Deferred organization expenses (Note 1e) 22,480
Prepaid expenses and other assets 404,120
------------
Total assets 799,007,770
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $ 1,277,489
Investment adviser (Note 2) 308,274 1,585,763
------------
Accrued expenses and other liabilities 315,830
------------
Total liabilities 1,901,593
------------
Net Assets: Net assets $797,106,177
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (10,000 shares
of AMPS* issued and outstanding at $25,000 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 519,009,869
Undistributed investment income--net 6,882,835
Accumulated realized capital losses on investments--net (12,512,320)
Unrealized appreciation on investments--net 30,019,652
------------
Total--Equivalent to $14.76 net asset value per share of
Common Stock (market price--$13.50) 547,106,177
------------
Total capital $797,106,177
============
<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, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 25,773,704
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 1,911,423
Commission fees (Note 4) 338,234
Transfer agent fees 63,132
Accounting services (Note 2) 47,566
Professional fees 41,240
Printing and shareholder reports 30,202
Custodian fees 28,341
Directors' fees and expenses 22,388
Listing fees 16,496
Pricing fees 8,620
Amortization of organization expenses (Note 1e) 5,333
Other 18,604
------------
Total expenses 2,531,579
------------
Investment income--net 23,242,125
------------
Realized & Realized loss on investments--net (12,514,279)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 36,684,593
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 47,412,439
(Notes 1b, ============
1d & 3):
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 23,242,125 $ 47,624,907
Realized gain (loss) on investments--net (12,514,279) 9,469,638
Change in unrealized appreciation/depreciation on investments
--net 36,684,593 (92,046,200)
------------ ------------
Net increase (decrease) in net assets resulting from
operations 47,412,439 (34,951,655)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (18,894,094) (39,600,729)
Shareholders Preferred Stock (3,601,961) (6,723,911)
(Note 1f): Realized gain on investments--net:
Common Stock (8,130,977) (8,671,336)
Preferred Stock (1,336,651) (1,008,475)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (31,963,683) (56,004,451)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in
Transactions reinvestment of dividends and distributions -- 2,807,654
(Notes 1e & 4): Offering costs resulting from the issuance of Preferred Stock -- 30,500
------------ ------------
Net increase in net assets derived from capital stock
transactions -- 2,838,154
------------ ------------
Net Assets: Total increase (decrease) in net assets 15,448,756 (88,117,952)
Beginning of period 781,657,421 869,775,373
------------ ------------
End of period* $797,106,177 $781,657,421
============ ============
<FN>
*Undistributed investment income--net $ 6,882,835 $ 6,136,765
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (CONCLUDED)
<TABLE>
Financial Highlights
<CAPTION>
For the
For the Period
The following per share data and ratios have been derived Six Months Nov. 29,
from information provided in the financial statements. Ended For the Year Ended 1991++ to
April 30, October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.35 $ 16.80 $ 14.69 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .63 1.29 1.31 1.18
Realized and unrealized gain (loss) on investments--net .65 (2.23) 2.27 .57
-------- -------- -------- --------
Total from investment operations 1.28 (.94) 3.58 1.75
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.51) (1.07) (1.11) (.89)
Realized gain on investments--net (.22) (.23) (.16) --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.73) (1.30) (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 (.10) (.18) (.17) (.19)
Realized gain on investments--net (.04) (.03) (.03) --
Capital charge resulting from issuance of
Preferred Stock -- -- -- (.14)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.14) (.21) (.20) (.33)
-------- -------- -------- --------
Net asset value, end of period $ 14.76 $ 14.35 $ 16.80 $ 14.69
======== ======== ======== ========
Market price per share, end of period $ 13.50 $ 12.125 $ 16.75 $ 15.125
======== ======== ======== ========
Total Based on market price per share 17.62%+++ (20.94%) 19.91% 7.06%+++
Investment ======== ======== ======== ========
Return:** Based on net asset value per share 8.66%+++ (6.71%) 23.83% 9.99%+++
======== ======== ======== ========
<PAGE>
Ratios to Expenses, net of reimbursement .66%* .66% .64% .58%*
Average ======== ======== ======== ========
Net Assets:*** Expenses .66%* .66% .64% .65%*
======== ======== ======== ========
Investment income--net 6.09%* 5.76% 5.72% 6.08%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $547,106 $531,657 $619,775 $526,287
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $250,000 $250,000 $250,000 $250,000
======== ======== ======== ========
Portfolio turnover 14.66% 44.27% 25.58% 66.45%
======== ======== ======== ========
Dividends Per Series A--Investment income--net $ 440 $ 598 $ 560 $ 680
Share on Series B--Investment income--net 323 733 554 690
Preferred Stock Series C--Investment income--net 381 647 566 685
Outstanding:++++++ Series D--Investment income--net 377 659 556 688
Series E--Investment income--net 309 707 542 688
<FN>
*Annualized.
**Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on December 23, 1991.
++++++Dividends per share have been adjusted to reflect a two-for-
one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a nondiversified, closed-end management
investment company. These unaudited financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. 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.
<PAGE>
(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 and options thereon, which are traded on
exchanges, are valued at their closing price 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. Securities with
remaining maturities of sixty days or less are valued at amortized
cost, which approximates market value. Securities for which market
quotations are not readily available 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) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--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.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
<PAGE>
Written and purchased options are non-income producing investments.
(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.
(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 transactions are
determined on the identified cost basis.
NOTES TO FINANCIAL STATEMENTS (concluded)
(e) Deferred organization expenses and offering expenses--Deferred
organization expenses are amortized on a straight-line basis over a
five-year period. Direct expenses relating to the public offering of
the Common and Preferred Stock were charged to capital at the time
of issuance.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, 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, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $107,250,455 and
$176,698,421, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Losses Gains (Losses)
Long-term investments $ (4,019,489) $30,034,133
Short-term investments -- (14,481)
Financial futures contracts (8,494,790) --
------------ -----------
Total $(12,514,279) $30,019,652
============ ===========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $30,019,652, of which $31,706,941 related to
appreciated securities and $1,687,289 related to depreciated
securities. The aggregate cost of investments at April 30, 1995 for
Federal income tax purposes was $753,831,040.
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, 1995, shares issued and
outstanding remained constant at 37,061,414. At April 30, 1995,
total paid-in capital amounted to $522,716,010.
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, 1995 were as
follows: Series A, 4.14%; Series B, 4.03%; Series C, 4.115%; Series
D, 4.20%; and Series E, 3.20%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 10,000 AMPS shares authorized, issued
and outstanding with a liquidation preference of $25,000 per share,
plus accumulated and unpaid dividends of $1,058,323.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%
calculated on the proceeds of each auction. For the six months ended
April 30, 1995, MLPF&S, an affiliate of FAM, earned $133,217 as
commissions.
<PAGE>
5. Subsequent Event:
On May 9, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.079849 per share, payable on May 30, 1995 to shareholders of
record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share Quarterly Financial Data*
<CAPTION>
Dividends/Distributions
Net Realized Unrealized
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
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 1, 1993 to January 31, 1994 .33 .20 (.07) .27 .05 $.23 $.03
February 1, 1994 to April 30, 1994 .31 .10 (1.79) .27 .03 -- --
May 1, 1994 to July 31, 1994 .32 -- .20 .26 .05 -- --
August 1, 1994 to October 31, 1994 .33 (.04) (.83) .27 .05 -- --
November 1, 1994 to January 31, 1995 .33 (.19) .38 .26 .04 .22 .04
February 1, 1995 to April 30, 1995 .30 (.15) .61 .25 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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 1, 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
May 1, 1994 to July 31, 1994 15.52 14.68 14.375 13.625 3,341
August 1, 1994 to October 31, 1994 15.23 14.35 14.625 11.875 5,570
November 1, 1994 to January 31, 1995 14.31 13.39 13.625 11.25 7,793
February 1, 1995 to April 30, 1995 14.99 14.33 13.75 13.25 2,612
<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>
