MUNIYIELD
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1997
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. Statements and other information herein are as dated
and are subject to change.
<PAGE>
MuniYield Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield Fund, Inc.
DEAR SHAREHOLDER
For the six-month period ended April 30, 1997, the Common Stock of
MuniYield Fund, Inc. earned $0.516 per share income dividends, which
included earned and unpaid dividends of $0.081. This represents a
net annualized yield of 6.80%, based on a month-end per share net
asset value of $15.30. Over the same period, the total investment
return on the Fund's Common Stock was +2.38%, based on a change in
per share net asset value from $15.68 to $15.30, and assuming
reinvestment of $0.520 per share income dividends and $0.208 per
share capital gains distributions.
For the six-month period ended April 30, 1997, the Fund's Auction
Market Preferred Stock had an average yield as follows: Series A,
4.24%; Series B, 4.28%; Series C, 3.94%; Series D, 3.80%; and Series
E, 4.04%.
<PAGE>
The Municipal Market Environment
Long-term tax-exempt revenue bonds traded in a relatively narrow
range throughout much of the six-month period ended April 30, 1997.
By mid-January 1997, municipal bond yields rose to over 6% as in-
vestors reacted negatively to reports of progressively stronger
domestic economic growth. However, a continued lack of any material
inflationary pressures allowed bond yields to decline to their prior
levels by late February. Bond yields rose again as investors became
increasingly concerned that the US domestic economic strength seen
thus far in 1997 would continue, and that the increase in short-term
interest rates by the Federal Reserve Board (FRB) in late March
would be the first in a series of such moves designed to slow the US
economy before any dormant inflationary pressures were awakened.
Long-term tax-exempt bond yields rose approximately 15 basis points
(0.15%) to almost 6.15% by mid-April. Similarly, long-term US
Treasury bond yields rose over 35 basis points over the same period
to 7.16%. However, in late April economic indicators were released
showing that, despite considerable economic growth, any inflationary
pressures, particularly those associated with wage increases, were
well-contained and of no immediate concern. Fixed-income bond prices
staged a significant rally during the last week in April with long-
term US Treasury bond yields falling nearly 20 basis points to end
the month at 6.95%. Municipal bond yields, as measured by the Bond
Buyer Revenue Bond Index, declined nearly 15 basis points to stand
at 6.01% by April 30, 1997.
As in recent quarters, the relative stability of long-term tax-
exempt bond yields was supported by low levels of new municipal bond
issuance. During the six months ended April 30, 1997, approximately
$90 billion in long-term tax-exempt bonds was underwritten, a
decline of over 6% compared to the corresponding period a year
earlier. During the three months ended April 30, 1997, $41 billion
in new long-term municipal bonds was issued, also a 6% decline in
issuance compared to the three-month period ended April 30, 1996.
Overall investor demand remained strong, particularly from property
and casualty insurance companies and individual retail investors. In
recent years, investor demand increased whenever tax-exempt bond
yields approached or exceeded the 6% level as they have in the past
few months.
Additionally, in recent months much of the new bond issuance was
dominated by a number of larger issues. These included $710 million
in New York City water bonds, $600 million in state of California
bonds, $1 billion in New York City general obligation bonds, $435
million in Dade County, Florida water and sewer revenue bonds, $450
million in Puerto Rico Electric Authority issues and $930 million in
Port Authority of New York and New Jersey issues. These bonds have
typically been issued in states with relatively high state income
taxes and consequently were generally underwritten at yields that
were relatively unattractive to residents in other states. This has
exacerbated the general decline in overall issuance in recent years,
making the decrease in supply even more dramatic for general market
investors.
<PAGE>
The present economic situation remains nearly ideal. The domestic
economy continues to grow steadily with little, if any, sign of a
resurgence in inflation. Recent economic growth generated
considerable unexpected tax revenues for the Federal government.
Forecasts for the 1997 Federal fiscal deficit were reduced to under
$100 billion, a level not seen since the early 1980s. Such a reduced
Federal deficit enhances the prospect for a balanced Federal
budget. All these factors support a scenario of steady, or even
falling, interest rates in the coming years. Present annual
estimates of future municipal bond issuance remain centered around
$175 billion, indicating that the current relative scarcity of tax-
exempt bonds should continue for at least the remainder of the year.
Should interest rates begin to decline later this year, either as
the result of a balanced Federal budget or continued benign
inflation, investors are unlikely to be able to purchase long-term
municipal bonds at their currently attractive levels.
Portfolio Strategy
FRB Chairman Alan Greenspan's thinly veiled warning about irrational
exuberance in the equity markets late last year, combined with a
rebound in first quarter gross domestic product growth, set the
fixed-income markets on edge as investor concerns once again mounted
over the possibility of a more restrictive monetary policy. Long-
term interest rates rose erratically during the early part of 1997
and on March 25, 1997, the FRB raised the closely watched Federal
Funds rate by 25 basis points, thereby shifting investors' focus to
debating the extent and duration of the central bank's current
policy stance.
While the Fund benefited early in the April period from an
aggressive investment strategy as long-term interest rates declined
last fall, this same strategy left MuniYield Fund, Inc. somewhat
more susceptible to the subsequent market reversal. Therefore, our
market outlook became more circumspect in recognition of the risks
associated with recent developments. We shifted our investment
strategy to one of reducing market exposure during periods of
strength, and utilizing bouts of weakness as an opportunity to lock
in attractive yields. Until the future direction of interest rates
becomes more clear, this approach should work well with the current
high degree of uncertainty, allowing for incremental improvements in
the portfolio's overall rate of return. In managing the Fund, we
continue to seek to improve average call protection as well as
maintain an attractive stream of tax-exempt income.
<PAGE>
While the prospect of a more restrictive monetary policy suggests
some upward pressure on taxable, short-term interest rates, the
impact on tax-exempt, short-term interest rates should be less
pronounced. Nonetheless, the extent and duration of a possible
tighter monetary policy could have important implications for our
shareholders, since the benefits of leverage may be temporarily
abridged. (For a complete explanation of the benefits and risks of
leveraging, see page 3 of this report to shareholders.) Despite
these concerns, it is important to remember that over the long term,
leverage has demonstrated its effectiveness throughout a variety of
market scenarios.
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
Senior Vice President
(Theodore R. Jaeckel Jr.)
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
<PAGE>
May 30, 1997
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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends of 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 pickup on the
Common Stock will be reduced or eliminated completely. At the same
time, the market value of 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.
<PAGE>
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)
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
RITR Residual Interest Trust Receipts
S/F Single-Family
UPDATES Unit Priced Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<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 $ 9,462
Alaska--3.6% Valdez, Alaska, Marine Terminal Revenue Refunding Bonds:
NR* NR* 10,050 (Amerada Hess Pipeline Corporation), 6.10% due 2/01/2024 9,890
AA Aa2 8,000 (British Petroleum Pipeline), Series B, 7% due 12/01/2025 8,763
AA Aa3 9,635 (Sohio Pipeline--British Petroleum Oil), 7.125%
due 12/01/2025 10,670
Arizona--2.0% A1+ P1 7,200 Coconino County, Arizona, Pollution Control Corporation
(Public Service Navajo Project), VRDN, AMT, Series A, 4.15%
due 10/01/2029 (a) 7,200
BB+ Ba1 9,000 Maricopa County, Arizona, Pollution Control Corporation, PCR,
Refunding (Public Service Company of New Mexico Project),
Series A, 6.30% due 12/01/2026 8,866
<PAGE>
California AAA Aaa 9,195 Anaheim, California, Public Financing Authority, Lease Revenue
- --7.2% Bonds (Public Improvements Project), Sub-Series C, 5.73%**
due 9/01/2017 (i) 2,791
AAA Aaa 6,420 California Central Coast Water Authority, Revenue Refunding
Bonds (State Water Project Regional Facilities), Series A,
5% due 10/01/2016 (c) 5,889
California Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue Bonds, Senior Lien, Series A**:
BBB- Baa 10,000 6.25% due 1/01/2018 2,720
BBB- Baa 44,165 6.31% due 1/01/2020 10,473
BBB- Baa 30,245 6.24% due 1/01/2021 6,670
BBB- Baa 25,000 6.25% due 1/01/2022 5,172
A1+ NR* 900 California Pollution Control Financing Authority, PCR,
Refunding (Pacific Gas and Electric Company), VRDN, Series C,
4.15% due 11/01/2026 (a) 900
A1+ VMIG1++ 700 California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Bonds (Shell Oil Company--Martinez Project),
VRDN, AMT, Series A, 4.15% due 10/01/2024 (a) 700
California State Department of Water Resources, Water Systems
Revenue Bonds (Central Valley Project), Series O:
AA Aa 6,505 4.75% due 12/01/2018 5,663
AAA Aaa 9,000 4.75% due 12/01/2029 (e) 7,543
AAA Aaa 5,000 Metropolitan Water District, Southern California, Waterworks
Revenue Bonds, Series C, 5% due 7/01/2027 (e) 4,472
AAA NR* 5,000 Orange County, California, Community Facilities District,
Special Tax No. 88-1 (Aliso Viejo Project), Series A, 7.35% due
8/15/2002 (b) 5,682
Colorado-- Denver, Colorado, City and County Airport Revenue Bonds:
5.1% BBB Baa 8,000 AMT, Series D, 7.75% due 11/15/2013 9,493
BBB Baa 3,310 AMT, Series D, 7.75% due 11/15/2021 3,639
AAA NR* 4,900 Series A, 7.25% due 11/15/2002 (b) 5,538
AAA Baa 14,350 Series A, 7.25% due 11/15/2002 (b) 16,218
NR* NR* 5,000 Denver, Colorado, Urban Renewal Authority, Tax Increment
Revenue Bonds (Downtown Denver), AMT, Series A, 7.75%
due 9/01/2016 5,018
NR* NR* 1,650 Mountain Village, Colorado, Metropolitan District, Refunding
(San Miguel County), UT, 7.95% due 12/01/2003 1,808
Connecticut NR* B1 2,550 New Haven, Connecticut, Facilities Revenue Bonds (Hill
- --0.3% Health Corporation Project), 9.25% due 5/01/2017 2,752
</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>
District of A+ A3 $ 4,940 District of Columbia Revenue Bonds (Howard University),
Columbia--0.6% Series B, 6.75% due 10/01/2012 $ 5,204
Georgia--1.1% NR* NR* 5,620 Atlanta, Georgia, Urban Residential Finance Authority, College
Facilities Revenue Bonds (Morris Brown College Project),
9.50% due 12/01/2001 (b) 6,798
Burke County, Georgia, Development Authority, PCR (Georgia
Power Company--Plant Vogtle Project), VRDN (a):
A1 VMIG1++ 300 2nd Series, 4.35% due 4/01/2025 300
A1 NR* 1,500 Refunding, 4.35% due 9/01/2026 1,500
Hawaii--0.9% Hawaii State, Housing Finance and Development Corporation,
S/F Mortgage Purchase Revenue Bonds:
A Aa2 1,945 AMT, Series A, 7% due 7/01/2011 2,023
A Aa2 870 AMT, Series A, 7.10% due 7/01/2024 906
A Aa2 3,040 Series B, 6.90% due 7/01/2016 3,181
A Aa2 1,110 Series B, 7% due 7/01/2031 1,160
Idaho--0.5% AA NR* 3,860 Idaho Housing Agency, S/F Mortgage, AMT, Senior Series C-2,
7.15% due 7/01/2023 4,042
Illinois--3.6% NR* Aaa 5,000 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series B,
7.625% due 9/01/2027 (f)(g) 5,506
BBB Baa1 2,750 Illinois Development Finance Authority, PCR, Refunding
(Illinois Power Company Project), Series A, 7.375% due 7/01/2021 3,049
NR* NR* 2,500 Illinois Educational Facilities Authority Revenue Bonds
(Chicago Osteopathic Health Systems), 7.25% due 11/15/2019 (b) 2,953
Illinois Health Facilities Authority Revenue Bonds:
A A2 1,500 (Edward Hospital Association Project), 7% due 2/15/2022 1,588
BBB NR* 2,625 Refunding (Saint Elizabeth's Hospital--Chicago), 7.75%
due 7/01/2016 2,886
BBB- NR* 8,000 Metropolitan Pier and Exposition Authority, Illinois, Hospitality
Facilities Revenue Bonds (McCormick Place Convention),
7% due 7/01/2026 8,856
NR* NR* 3,000 Round Lake Beach, Illinois, Tax Increment Revenue Refunding
Bonds, 7.50% due 12/01/2013 3,125
AAA VMIG1++ 1,100 Southwestern Illinois Development Authority, Solid Waste
Disposal Revenue Bonds (Shell Oil Company--Wood River Project),
AMT, 4.10% due 8/01/2021 1,100
Indiana--1.4% NR* A2 1,150 Indiana Health Facilities Financing Authority, Hospital
Revenue Refunding Bonds (Saint Anthony Medical Center),
Series A, 7% due 10/01/2017 1,230
BBB- Baa3 3,930 Indiana State Development Finance Authority, Environmental
Revenue Refunding and Improvement Bonds (USX Corporation
Project), 6.25% due 7/15/2030 3,946
A+ NR* 6,000 Indianapolis, Indiana, Local Public Improvement Bond
Bank, Refunding, Series D, 6.75% due 2/01/2020 6,444
<PAGE>
Kansas--1.1% AAA Aaa 8,300 Burlington, Kansas, PCR, Refunding (Kansas Gas and
Electric Company Project), 7% due 6/01/2031 (e) 8,968
Kentucky-- Kenton County, Kentucky, Airport Board, Special Facilities
1.3% Airport Revenue Bonds (Delta Airlines Project), AMT, Series A:
BB+ Baa3 5,785 7.50% due 2/01/2020 6,210
BB+ Baa3 500 6.125% due 2/01/2022 487
NR* NR* 4,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds
(TJ International Project), AMT, 7% due 6/01/2024 4,138
</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>
Louisiana-- NR* Baa2 $35,000 Lake Charles, Louisiana, Harbor and Terminal District,
7.3% Port Facilities Revenue Refunding Bonds (Trunkline Long
Company Project), 7.75% due 8/15/2022 $ 39,544
BB NR* 20,000 Port New Orleans, Louisiana, IDR, Refunding (Continental
Grain Company Project), 6.50% due 1/01/2017 19,930
Maryland-- NR* NR* 3,000 Maryland State Energy Financing Administration, Limited
1.0% Obligation Revenue Bonds (Cogeneration--AES Warrior Run),
AMT, 7.40% due 9/01/2019 3,121
NR* Aaa 4,500 Prince Georges County, Maryland, Hospital Revenue Bonds
(Dimensions Health Corporation Issue), 7.25% due 7/01/2002 (b) 5,056
Massachusetts AAA Aaa 5,000 Massachusetts State, HFA, Residential Development Bonds,
- --2.3% Series C, 6.90% due 11/15/2021 (f) 5,238
A+ Aa 5,970 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT,
Series 38, 7.20% due 12/01/2026 6,349
A1+ VMIG1++ 5,300 Massachusetts State Health and Educational Facilities
Authority Revenue Bonds (Capital Asset Program), VRDN,
Series B, 4% due 7/01/2005 (a)(e) 5,300
AAA Aaa 2,500 Massachusetts State Water Resource Authority Revenue
Bonds, Series B, 4.75% due 12/01/2021 (e) 2,135
Michigan--0.5% Detroit, Michigan, GO, UT, Series A:
BBB Aaa 1,500 6.80% due 4/01/2005 (b) 1,684
BBB Baa 2,500 6.70% due 4/01/2010 2,644
<PAGE>
Minnesota-- A1+ Aa3 1,000 Hubbard County, Minnesota, Solid Waste Disposal Revenue Bonds
2.6% (Potlatch Corporation Project), VRDN, AMT, 4.70% due 8/01/2014 (a) 1,000
AA- A1 100 Minneapolis, Minnesota, Community Development Agency,
PCR (Northern State Power Company Project), VRDN,
4.60% due 3/01/2011 (a) 100
AA+ Aa2 10,000 Minnesota State, HFA, Housing Development, Series A, 6.95%
due 2/01/2014 10,475
AA+ Aa2 3,410 Minnesota State, HFA, S/F Mortgage, AMT, Series A, 7.05% due
due 7/01/2022 3,532
BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International
Corporation), 6.95% due 10/01/2012 6,058
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 19,741
Missouri-- BBB- NR* 2,800 Joplin, Missouri, IDA, Hospital Facilities Revenue
1.2% Refunding and Improvement Bonds (Tri-State Osteopathic),
8.25% due 12/15/2014 3,048
AAA NR* 6,300 Missouri State Housing Development Commission, S/F Mortgage
Revenue Bonds, AMT, Series B, 7.55% due 9/01/2027 (f)(g) 6,946
Nevada--0.2% NR* Aaa 2,000 Nevada Housing Division, S/F Mortgage, AMT, Series A-2,
6.15% due 4/01/2029 1,981
New Jersey-- BBB Baa2 6,130 New Jersey Health Care Facilities Financing Authority, Revenue
4.1% Refunding Bonds (Saint Elizabeth Hospital Obligation Group),
6% due 7/01/2027 6,048
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) 10,171
AAA Aaa 19,250 New Jersey State Transportation Trust Fund Authority
(Transportation System), Series A, 4.75% due 12/15/2016 (e) 17,126
</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 BB+ Ba1 $ 2,000 Farmington, New Mexico, PCR, Refunding (Public Service
- --0.2% Company, San Juan), Series A, 6.30% due 12/01/2016 $ 1,979
<PAGE>
New York-- AAA Aaa 5,500 Metropolitan Transportation Authority, New York Commuter
16.6% Facilities Revenue Bonds, RITR, Series 9, 7.34% due 7/01/2026 (j) 5,775
New York City, New York, GO, UT:
BBB+ Aaa 1,695 Series A, 7.75% due 8/15/2001 (b) 1,914
BBB+ Aaa 3,910 Series A, 7.75% due 8/15/2001 (b) 4,416
AAA Aaa 1,930 Series A, 7.75% due 8/15/2001 (b) 2,180
BBB+ Aaa 3,555 Series B, 7% due 6/01/2001 (b) 3,900
BBB+ Baa1 835 Series B, 7% due 6/01/2016 881
BBB+ Baa1 15,000 Series B, Fiscal 92, 7.75% due 2/01/2010 16,713
BBB+ Baa1 1,555 Series B, Fiscal 92, 7.75% due 2/01/2013 1,729
BBB+ Baa1 95 Series B, Sub-Series B-1, 7% due 8/15/2004 (b) 107
BBB+ Baa1 6,305 Series B, Sub-Series B-1, 7% due 8/15/2016 6,717
BBB+ Aaa 1,835 Series C, Sub-Series C-1, 7.50% due 8/01/2002 (b) 2,084
BBB+ Baa1 3,165 Series C, Sub-Series C-1, 7.50% due 8/01/2021 3,474
BBB+ Baa1 2,000 Series G, 5.75% due 2/01/2020 1,891
A A 5,500 New York City, New York, IDA, Special Facilities Revenue
Bonds, RITR, AMT, Series RI-5, 6.95% due 1/01/2024 (j) 5,472
New York City, New York, Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds:
AAA Aaa 7,770 Refunding, Fiscal 1997-Series A, 5.375% due 6/15/2026 (i) 7,349
A1+ VMIG1++ 600 VRDN, Series C, 4.45% due 6/15/2023 (a)(h) 600
New York State Dormitory Authority Revenue Bonds:
AA NR* 3,000 (Hebrew Home for the Aged--Riverdale), 6.125% due
2/01/2037 (d) 3,028
BBB+ Baa1 6,375 (State University Educational Facilities), 5.50% due 5/15/2026 5,898
New York State Environmental Facilities Corporation, PCR:
A- Aa 17,170 RITR, Series RI-1, 6.745% due 6/15/2014 (j) 17,449
A Aa 24,400 (State Water Revolving Fund), Series E, 6.875% due 6/15/2010 26,319
New York State Local Government Assistance Corporation
Revenue Bonds:
A A3 2,000 Refunding, Series C, 5.50% due 4/01/2017 1,957
A A3 5,000 Refunding, Series E, 5% due 4/01/2021 4,486
A A3 6,000 Series A, 6.50% due 4/01/2020 6,365
BBB Baa1 5,000 New York State Urban Development Corporation Revenue Bonds
(Correctional Capital Facilities), Series 6, 5.375% due 1/01/2025 4,524
North Carolina North Carolina HFA, S/F Revenue Bonds:
- --3.7% AA Aa 5,300 AMT, Series T, 7.05% due 9/01/2020 5,550
AA Aa 14,830 Refunding, Series S, 6.95% due 3/01/2017 15,617
AA Aa3 10,015 North Carolina Medical Care Commission, Health Care
Facilities Revenue Bonds (Carolina Medicorp Project),
5.25% due 5/01/2026 9,142
North Dakota-- A+ Aa2 3,770 North Dakota State, HFA, S/F Mortgage Revenue Bonds, Series A,
0.5% 7% due 7/01/2023 3,941
Ohio--1.0% AAA Aaa 4,425 Cleveland, Ohio, Public Power System, Revenue Refunding
Bonds, First Mortgage, Series 1, 5% due 11/15/2020 (e) 4,032
NR* Baa3 3,600 Hilliard, Ohio, IDR, Refunding (Kroger Co.), 8.10% due 7/01/2012 4,104
<PAGE>
Oklahoma--1.0% BBB Baa 3,250 Holdenville, Oklahoma, Industrial Authority, Correctional
Facility Revenue Bonds, 6.70% due 7/01/2015 3,314
BB+ Baa2 5,050 Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding
Bonds (American Airlines Project), 6.25% due 6/01/2020 5,068
</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>
Oregon--0.5% AAA Aaa $15,000 Oregon Health Sciences University Revenue Bonds, Series A,
5.93%** due 7/01/2021 (e) $ 3,755
Pennsylvania BB Ba2 1,600 Beaver County, Pennsylvania, IDA, PCR, Refunding (Cleveland
- --3.8% Electric Company Project), 7.625% due 5/01/2025 1,730
NR* Baa3 1,950 McCandless, Pennsylvania, IDA, IDR, Refunding (Kroger Co.),
7.375% due 10/15/2007 2,163
Pennsylvania Convention Center Authority, Revenue Refunding
Bonds, Series A:
BBB Baa 9,675 6.70% due 9/01/2014 10,216
BBB Baa 5,000 6.75% due 9/01/2019 5,298
AA+ Aa 5,250 Pennsylvania HFA, S/F Mortgage, AMT, Series 42, 6.85%
due 4/01/2025 5,508
Philadelphia, Pennsylvania, Authority for IDR, Refunding
(Commercial Development):
NR* NR* 3,000 (Days Inn), Series B, 6.50% due 10/01/2027 2,944
NR* NR* 3,000 (Doubletree), Series A, 6.50% due 10/01/2027 2,944
South Carolina AA Aa1 3,000 Greenville, South Carolina, Waterworks Revenue Bonds, 5.50%
- --0.7% due 2/01/2022 2,878
A- A1 2,500 Richland County, South Carolina, PCR, Refunding (Union Camp
Corporation Project), Series C, 6.55% due 11/01/2020 2,649
South Dakota BBB Baa3 2,500 South Dakota State Health and Educational Facilities Authority,
- --0.3% Revenue Refunding Bonds (Prairie Lakes Health Care), 7.25%
due 4/01/2022 2,638
Tennessee NR* NR* 5,000 Hardeman County, Tennessee, Correctional Facilities Corporation
- --3.3% Revenue Bonds, 7.75% due 8/01/2017 5,089
NR* Aaa 1,475 Knox County, Tennessee, Health, Educational, and Housing
Facilities Board, Hospital Facilities Revenue Bonds (Baptist
Health Systems of East Tennessee), 8.50% due 4/15/1999 (b) 1,609
AAA Aaa 5,055 Metropolitan Government, Nashville and Davidson Counties,
Tennesse, Sports Authority, Revenue Public Improvement
Bonds (Stadium Project), 5.875% due 7/01/2021 (c) 5,085
AA Aa 15,000 Metropolitan Government, Nashville and Davidson Counties,
Tennessee, UT, 6.15% due 5/15/2025 15,501
<PAGE>
Texas--8.8% Brazos River Authority, Texas, PCR (Texas Utilities Electric
Company), VRDN, AMT (a):
A1+ VMIG1++ 900 Refunding, Series C, 4.50% due 6/01/2030 900
A1+ VMIG1++ 600 Series A, 4.50% due 4/01/2030 600
NR* Aaa 3,800 Ector County, Texas, Hospital District, Hospital Revenue Bonds
(Medical Center Hospital), 7.30% due 4/15/2002 (b) 4,262
AA- Aa3 5,000 Guadalupe--Blanco River Authority, Texas, Sewage and Solid Waste
Disposal Facilities Revenue Bonds (du Pont (E.I.) de Nemours
and Company Project), AMT, 6.40% due 4/01/2026 5,193
A1+ NR* 700 Gulf Coast, Texas, Waste Disposal Authority, Pollution Control
and Solid Waste Disposal Revenue Refunding Bonds (Amoco Oil
Co. Project), VRDN, AMT, 4.50% due 5/01/2024 (a) 700
BBB Baa1 8,400 Gulf Coast, Texas, Waste Disposal Authority Revenue Bonds
(Champion International Corporation), AMT, 7.45% due 5/01/2026 9,010
Houston, Texas, Airport System Revenue Bonds, Special
Facilities, AMT:
AAA Aaa 3,435 (Automated People Mover), Series A, 5.50% due 7/15/2017 (i) 3,270
B+ Ba2 9,200 (Continental Airline Airport Improvement), Series C,
6.125% due 7/15/2027 8,731
B+ Ba2 5,250 (Continental Airline Terminal Improvement), Series B,
6.125% due 7/15/2017 5,074
</TABLE>
<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>
Texas AAA Aaa $ 4,050 Houston, Texas, Water and Sewer Systems Revenue Bonds,
(concluded) Junior Lien, Series A,, 6.375% due 12/01/2022 (e) $ 4,229
A1+ VMIG1++ 200 Matagorda County, Texas, Navigational District No. 1, Revenue
Refunding Bonds (Houston Light and Power Company Project),
VRDN, AMT, Series 1997, 4.45% due 11/01/2028 (a)(c) 200
BB Ba 5,000 Odessa, Texas, Junior College District, Revenue Refunding
Bonds, Series A, 8.125% due 12/01/2018 5,380
A+ A2 5,000 Red River Authority, Texas, PCR (Hoechst Celanese Corporation
Project), AMT, 6.875% due 4/01/2017 5,337
AAA Aa1 19,500 Texas Water Development Board, State Revolving Fund Revenue
Bonds, Senior-Lien, Series B, 5.125% due 7/15/2018 18,128
AAA NR* 880 Travis County, Texas, Housing Finance Corporation, Residential
Mortgage Revenue Refunding Bonds, Series A, 7% due
12/01/2011 (f)(g) 929
A1+ P1 100 West Side Calhoun County, Texas, Development Corporation,
PCR (Sohio Chemical Company Project), UPDATES, 4.40% due
12/01/2015 (a) 100
<PAGE>
Utah--0.7% BBB+ Baa2 3,300 Carbon County, Utah, Solid Waste Disposal Revenue Refunding
Bonds (Laidlaw Inc.--ECDC Project), AMT, Series A, 7.50%
due 2/01/2010 3,625
AA NR* 1,670 Utah State, HFA, S/F Mortgage, AMT, Senior Series E-2, 7.15% due
7/01/2024 1,741
Virginia--4.4% AA- Aa 13,605 Fairfax County, Virginia, Water Authority, Revenue Refunding
Bonds, 6% due 4/01/2022 13,836
NR* NR* 1,000 Pittsylvania County, Virginia, IDA, Revenue Bonds (Multi-Trade),
AMT, Series A, 7.55% due 1/01/2019 1,051
AAA Aaa 15,000 Upper Occoquan, Virginia, Sewage Authority, Regional Sewage
Revenue Bonds, Series A, 4.75% due 7/01/2029 (e) 12,811
AA+ Aa1 8,125 Virginia State, HDA, Commonwealth Mortgage, Series A,
7.10% due 1/01/2025 8,415
West Virginia BBB+ Baa1 7,500 Mason County, West Virginia, PCR, Refunding (Appalachian
- --1.4% Power Company Project), Series I, 6.85% due 6/01/2022 8,070
NR* NR* 3,000 Upshur County, West Virginia, Solid Waste Disposal Revenue
Bonds (TJ International Project), AMT, 7% due 7/15/2025 3,112
Wisconsin-- NR* A2 2,710 Wisconsin State Health and Educational Facilities Authority
0.3% Revenue Bonds (Mercy Hospital of Janesville Inc.),
6.60% due 8/15/2022 2,800
Total Investments (Cost--$772,084)--98.7% 806,305
Other Assets Less Liabilities--1.3% 10,745
--------
Net Assets--100.0% $817,050
========
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1997.
(b)Prerefunded.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
(h)FGIC Insured.
(i)FSA Insured.
(j)The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in effect
at April 30, 1997.
*Not Rated.
**Represents a zero coupon bond: the interest rate shown is the effective
yield at the time of purchase by the Fund.
++Highest short-term rating by Moody's Investors Service, Inc.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1997
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$772,084,021) (Note 1a) $806,304,888
Cash 5,361,204
Receivables:
Interest $ 14,477,895
Securities sold 545,001 15,022,896
------------
Deferred organization expenses (Note 1e) 886
Prepaid expenses and other assets 58,542
------------
Total assets 826,748,416
------------
Liabilities: Payables:
Securities purchased 8,313,596
Dividends to shareholders (Note 1f) 942,632
Investment adviser (Note 2) 333,278 9,589,506
------------
Accrued expenses and other liabilities 109,310
------------
Total liabilities 9,698,816
------------
Net Assets: Net assets $817,049,600
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 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 7,936,615
Undistributed realized gains on investments--net 2,176,108
Unrealized appreciation on investments--net 34,220,867
------------
Total--Equivalent to $15.30 net asset value per share of Common
Stock (market price--$15.00) 567,049,600
------------
Total capital $817,049,600
============
<PAGE>
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1997
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 25,334,098
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 2,045,827
Commission fees (Note 4) 314,053
Transfer agent fees 53,131
Accounting services (Note 2) 50,952
Professional fees 40,132
Custodian fees 29,214
Printing and shareholder reports 24,488
Directors' fees and expenses 22,305
Listing fees 15,884
Pricing fees 10,293
Amortization of organization expenses (Note 1e) 435
Other 17,527
------------
Total expenses 2,624,241
------------
Investment income--net 22,709,857
------------
Realized & Realized gain on investments--net 9,684,796
Unrealized Gain Change in unrealized appreciation on investments--net (14,464,647)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 17,930,006
(Notes 1b, 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <S> <C> <C>
Operations: Investment income--net $ 22,709,857 $ 46,616,111
Realized gain on investments--net 9,684,796 12,497,013
Change in unrealized appreciation on investments--net (14,464,647) (3,902,288)
------------ ------------
Net increase in net assets resulting from operations 17,930,006 55,210,836
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Common Stock (18,600,420) (38,420,345)
Shareholders Preferred Stock (3,010,790) (9,067,052)
(Note 1f): Realized gain on investments--net:
Common Stock (8,371,691) --
Preferred Stock (2,021,046) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (32,003,947) (47,487,397)
------------ ------------
Net Assets: Total increase (decrease) in net assets (14,073,941) 7,723,439
Beginning of period 831,123,541 823,400,102
------------ ------------
End of period* $817,049,600 $831,123,541
============ ============
<FN>
*Undistributed investment income--net $ 7,936,615 $ 6,837,968
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.68 $ 15.47 $ 14.35 $ 16.80 $ 14.69
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .61 1.26 1.27 1.29 1.31
Realized and unrealized gain (loss) on
investments--net (.13) .23 1.34 (2.23) 2.27
-------- -------- -------- -------- --------
Total from investment operations .48 1.49 2.61 (.94) 3.58
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.50) (1.04) (1.00) (1.07) (1.11)
Realized gain on investments--net (.23) -- (.22) (.23) (.16)
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.73) (1.04) (1.22) (1.30) (1.27)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net (.08) (.24) (.23) (.18) (.17)
Realized gain on investments--net (.05) -- (.04) (.03) (.03)
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.13) (.24) (.27) (.21) (.20)
-------- -------- -------- -------- --------
Net asset value, end of period $ 15.30 $ 15.68 $ 15.47 $ 14.35 $ 16.80
======== ======== ======== ======== ========
Market price per share, end of period $ 15.00 $ 14.875 $ 14.375 $ 12.125 $ 16.75
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 5.80%+++ 10.88% 29.76% (20.94%) 19.91%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 2.38%+++ 8.61% 18.00% (6.71%) 23.83%
======== ======== ======== ======== ========
Ratios to Average Expenses .64%* .64% .66% .66% .64%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 5.55%* 5.64% 5.91% 5.76% 5.72%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $567,050 $581,124 $573,400 $531,657 $619,775
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $250,000 $250,000 $250,000 $250,000 $250,000
======== ======== ======== ======== ========
Portfolio turnover 67.65% 96.74% 52.99% 44.27% 25.58%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,268 $ 3,324 $ 3,294 $ 3,127 $ 3,479
======== ======== ======== ======== ========
Dividends Series A--Investment income--net $ 327 $ 894 $ 887 $ 598 $ 560
Per Share on ======== ======== ======== ======== ========
Preferred Stock Series B--Investment income--net $ 331 $ 897 $ 850 $ 733 $ 554
Outstanding:++ ======== ======== ======== ======== ========
Series C--Investment income--net $ 272 $ 998 $ 827 $ 647 $ 566
======== ======== ======== ======== ========
Series D--Investment income--net $ 273 $ 888 $ 897 $ 659 $ 556
======== ======== ======== ======== ========
Series E--Investment income--net $ 302 $ 875 $ 759 $ 707 $ 542
======== ======== ======== ======== ========
<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.
++Dividends per share have been adjusted to reflect a two-for-one
stock split that occurred on December 1, 1994.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
<PAGE>
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. 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.
(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, including valuations furnished by a
pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its
valuations are reviewed by the officers of the Fund under the
general supervision of the Board of Directors.
(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.
<PAGE>
* 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).
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--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
(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.
<PAGE>
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1997 were $549,331,844 and
$578,628,003, respectively.
Net realized and unrealized gains as of April 30, 1997 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $9,684,796 $34,220,867
---------- -----------
Total $9,684,796 $34,220,867
========== ===========
As of April 30, 1997, net unrealized appreciation for Federal income
tax purposes aggregated $34,220,867, of which $37,890,162 related to
appreciated securities and $3,669,295 related to depreciated
securities. The aggregate cost of investments at April 30, 1997 for
Federal income tax purposes was $772,084,021.
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
As of April 30, 1997, shares issued and outstanding remained
constant at 37,061,414. At April 30, 1997, total paid-in capital
amounted to $522,716,010.
<PAGE>
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, 1997 were as
follows: Series A, 3.619%; Series B, 3.67%; Series C, 3.60%, Series
D, 3.60%; and Series E, 4.10%.
For the six months ended April 30, 1997, there were 10,000 AMPS
shares authorized, issued and outstanding with a liquidation
preference of $25,000 per share.
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, 1997, Merrill Lynch, Pierce, Fenner & Smith Inc., an
affiliate of FAM, earned $144,310 as commissions.
5. Subsequent Event:
On May 9, 1997, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$.081347 per share, payable on May 29, 1997 to shareholders of
record as of May 19, 1997.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
James H. Bodurtha, Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Theodore R. Jaeckel Jr., Vice President
Gerald M. Richard, Treasurer
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
<PAGE>
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYD
