MUNIYIELD
NEW YORK
INSURED
FUND, INC.
STRATEGIC
Performance
[GRAPHIC OMITTED]
Semi-Annual Report
April 30, 2000
<PAGE>
MUNIYIELD NEW YORK INSURED FUND, INC.
The Benefits and Risks of Leveraging
MuniYield New York Insured 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 strong,
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 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.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities.
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
TO OUR SHAREHOLDERS
For the six months ended April 30, 2000, the Common Stock of MuniYield New York
Insured Fund, Inc. earned $0.393 per share income dividends, which included
earned and unpaid dividends of $0.064. This represents a net annualized yield of
6.03%, based on a month-end per share net asset value of $13.08. Over the same
period, the total investment return on the Fund's Common Stock was +3.87%, based
on a change in per share net asset value from $13.02 to $13.08, and assuming
reinvestment of $0.400 per share income dividends.
The average yields for the Fund's Auction Market Preferred Stock for the six
months ended April 30, 2000 were: Series A, 3.41%; Series B, 3.63%; Series C,
4.04%; Series D, 3.44%; and Series E, 2.13%.
The Municipal Market Environment
Since October 1999 through mid-January 2000, fixed-income bond yields rose
steadily higher. US economic growth, in part intensified by Year 2000
preparations, grew at a 7.3% rate in the fourth quarter of 1999 and at a 4.2%
annual rate for all of 1999. Initial estimates for the first quarter of 2000
were reported at 5.4%. However, despite these significant growth rates, no price
measure indicator has shown any considerable signs of future price pressures at
the consumer level, despite the lowest unemployment rates since January 1970.
Given no signs of an economic slowdown, the Federal Reserve Board continued to
raise short-term interest rates in November 1999 and again in February and March
2000. In each instance, the Federal Reserve Board cited both the continued
growth of US employment and the impressive strength of the US equity markets as
reasons for attempting to moderate US economic growth before inflationary price
increases are realized. By mid-January 2000, US Treasury bond yields rose 60
basis points (0.60%) to 6.75%. Similarly, as measured by the Bond Buyer Revenue
Bond Index, long-term tax-exempt bond yields rose approximately 20 basis points
to 6.35%.
Since mid-January, fixed-income markets have largely ignored strong economic
fundamentals and concentrated on very positive technical supply factors.
Declining bond issuance, both current, and more importantly, expected future
issuance, helped push bond yields lower from mid-January to mid-April 2000. In
late January and early February 2000, the US Treasury announced its intention to
reduce the number of issues to be auctioned in the quarterly Treasury note and
bond auctions. Furthermore, budgetary surpluses would allow the US Treasury to
repurchase outstanding, higher-couponed Treasury issues, primarily in the
15-year and longer-term maturity sectors. Both these actions would result in a
significant reduction in the outstanding supply of long-term US Treasury debt.
Domestic and international investors quickly began to accumulate what was
expected to become a scarce commodity and bond prices quickly rose.
By mid-April 2000, US Treasury bond yields had declined over 100 basis points to
5.67%. However, bond yields rose somewhat during the last two weeks of the
period as economic statistics were released, indicating that the economic
strength seen in late 1999 was continuing into early 2000. The decline in
long-term US Treasury bond yields resulted in an inverted taxable yield curve as
short-term and intermediate-term interest rates have not fallen proportionately
since the Federal Reserve Board is expected to continue to raise short-term
interest rates. The current inversion has had much more to do with debt
reduction and Treasury buybacks than with investor expectations of slower
economic growth. Over the last six months, long-term US Treasury bond yields
have fallen almost 20 basis points to close the six-month period ended April 30,
2000 at 5.96%.
Tax-exempt bond yields have also declined in recent months. The decline has
largely been in response to the rally in US Treasury securities, as well as a
continued positive technical supply environment. States such as California and
Maryland have announced that their large current and anticipated future budget
surpluses will permit the cancellation or postponement of expected bond
issuance. Additionally, some issuers have also initiated tenders to repurchase
existing debt, reducing the supply of tax-exempt bonds in the secondary market
as well. Since their recent peak in January 2000, long-term municipal bond
yields declined over 25 basis points to finish the six-month period ended April
30, 2000 at 6.07%. During the last six months, municipal bond yields declined
just 10 basis points overall.
The relative underperformance of the municipal bond market in recent months has
been especially disappointing given the strong technical position the tax-exempt
bond market enjoyed. The issuance of long-term tax-exempt securities has
dramatically declined. Over the last year, $203 billion in new long-term
municipal securities was issued, a decline of almost 25% compared to the same
period a year earlier. For the six months ended April 30, 2000, approximately
$90 billion in new tax-exempt bonds was underwritten, a decline of more than 25%
compared to the same period in 1999. Although investors received over $30
billion in coupon payments, bond maturities, and the proceeds from early bond
redemptions, coupled with the highest municipal bond yields in three years,
overall investor demand has diminished. Long-term municipal bond mutual funds
have seen consistent outflows in recent months as the yields of individual
securities have risen faster than those of larger, more diverse mutual funds.
Over the last four months, tax-exempt mutual funds have had net redemptions of
more than $8 billion. Also, the demand from property and casualty insurance
companies has weakened as a result of the losses and anticipated losses incurred
from a series of damaging storms across much of the eastern United States.
Additionally, many institutional investors who have in recent years been
attracted to the municipal bond market by historically attractive tax-exempt
bond yield ratios of over 90% found other asset classes even more attractive.
Even with a favorable supply position, tax-exempt municipal bond yields have
underperformed their taxable counterparts.
Any significantly lower municipal bond yields are still likely to require weaker
US employment growth and consumer spending. The actions taken in recent months
by the Federal Reserve Board should eventually slow US economic growth. The
recent declines in US home sales are perhaps the first sign that consumer
spending is being slowed by higher interest rates. Until further signs develop,
it is likely that the municipal bond market's current favorable technical
position will dampen significant tax-exempt interest rate volatility and provide
a stable environment for eventual improvement in municipal bond prices.
Portfolio Strategy
During the six-month period ended April 30, 2000, we managed the Fund with the
intent of sustaining an attractive level of tax-exempt income for the
shareholders. Our strategy for the Fund was to remain invested in the
highest-yielding bonds that could be purchased without relinquishing the credit
quality of the Fund as well as to maintain a neutral portfolio structure. We
accomplished this by purchasing higher coupon bonds in the 10-year - 15-year
maturity range and selling lower coupon bonds in the 20-year - 30-year maturity
range. These transactions were done with a minimal sacrifice in yield. This
strategy proved advantageous throughout the period because although the market
experienced interest rate volatility, we were able to increase the Fund's income
without being subjected to the intense volatility.
The Fund's cost of borrowing increased somewhat in recent months as short-term
tax-exempt interest rates rose along with the adjustment evident in the taxable
market. Long-term tax-exempt interest rates have actually declined modestly,
causing the municipal yield curve to flatten. While this flattening has reduced
the incremental yield enhancement resulting from leveraging the Fund's Common
Stock, it is important to note that in contrast to the inverted shape of the US
Treasury yield curve, the municipal yield curve remained positively sloped. (For
a complete explanation of the benefits and risks of leveraging, see page 1 of
this report to shareholders.)
2 & 3
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
Looking ahead, we believe that interest rates will remain volatile until
investors regain confidence that the Federal Reserve Board has inflation under
control. Within this environment, we anticipate that there will be investment
opportunities to purchase bonds at attractive levels that may enhance the Fund's
total return when interest rates return to lower levels. We plan to maintain our
neutral position and purchase longer duration bonds when interest rates rise to
levels that are not consistent with the current economic activity.
In Conclusion
We appreciate your ongoing interest in MuniYield New York Insured Fund, Inc.,
and we look forward to serving your investment needs in the months and years to
come.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Roberto Roffo
Roberto Roffo
Portfolio Manager
May 31, 2000
Effective March 6, 2000, Roberto Roffo became responsible for the day-to-day
management of MuniYield New York Insured Fund, Inc. Mr. Roffo has been employed
by Merrill Lynch Asset Management, L.P. since 1996 as Vice President and since
1992 as Portfolio Manager.
PROXY RESULTS
During the six-month period ended April 30, 2000, MuniYield New York Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April 27, 2000.
Proposal 3 was approved on January 20, 2000. The description of each proposal
and number of shares voted are as follows:
<TABLE>
<CAPTION>
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Shares Voted Shares Withheld
For From Voting
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<S> <C> <C> <C> <C>
1. To elect the Fund's Board of Directors: Terry K. Glenn 7,031,510 183,498
James H. Bodurtha 7,029,760 185,248
Herbert I. London 7,030,863 184,145
Roberta Cooper Ramo 7,030,131 184,877
Arthur Zeikel 7,031,288 183,720
<CAPTION>
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Shares Voted Shares Voted Shares Voted
For Against Abstain
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<S> <C> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche
LLP as the Fund's independent auditors for
the current fiscal year. 7,064,826 78,956 71,226
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3. To approve the Agreement and Plan of
Reorganization between the Fund and MuniYield
New York Insured Fund II, Inc. 6,488,949 328,773 327,139
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</TABLE>
During the six-month period ended April 30, 2000, MuniYield New York Insured
Fund, Inc.'s Preferred Stock shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April 27, 2000.
Proposal 3 was approved on January 20, 2000. The description of each proposal
and number of shares voted are as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. To elect the Fund's Board of Directors:
Terry K. Glenn, James H. Bodurtha,
Herbert I. London, Joseph L. May,
Andre F. Perold, Roberta Cooper Ramo and
Arthur Zeikel as follows:
Series A 1,080 0
Series B 838 0
<CAPTION>
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Shares Voted Shares Voted Shares Voted
For Against Abstain
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<S> <C> <C> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as
the Fund's independent auditors for the current
fiscal year as follows:
Series A 1,080 0 0
Series B 838 0 0
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3. To approve the Agreement and Plan of Reorganization
between the Fund and MuniYield New York Insured
Fund II, Inc. as follows:
Series A 1,687 0 13
Series B 1,546 60 94
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</TABLE>
4 & 5
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
STATE
New York--101.2%
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
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<S> <C> <C> <S> <C>
NR* Aaa $11,895 Albany County, New York, Airport Authority, Airport Revenue Bonds, RITR, AMT, Series RI-7,
6.37% due 12/15/2023 (d)(e) $ 11,833
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AAA Aaa 8,200 Buffalo and Fort Erie, New York, Public Bridge Authority, Toll Bridge System Revenue Bonds,
5.75% due 1/01/2025 (b) 8,009
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AAA Aaa 1,995 Buffalo, New York, Municipal Water Finance Authority, Water System Revenue Refunding Bonds,
Series B, 5% due 7/01/2026 (f) 1,724
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AAA Aaa 4,300 Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6% due 7/01/2013 (f) 4,570
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AAA Aaa 1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste System--
Forward), Series A, 5.40% due 1/01/2013 (b) 1,673
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Huntington, New York, GO, Refunding (a):
NR* Aaa 715 5.50% due 4/15/2010 729
NR* Aaa 485 5.50% due 4/15/2011 494
NR* Aaa 460 5.50% due 4/15/2012 467
NR* Aaa 455 5.50% due 4/15/2013 461
NR* Aaa 450 5.50% due 4/15/2014 454
NR* Aaa 450 5.50% due 4/15/2015 452
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Long Island Power Authority, New York, Electric System Revenue Refunding Bonds:
AAA Aaa 14,000 5.25% due 4/01/2010 (b) 13,946
AAA Aaa 10,950 Series A, 5.50% due 12/01/2010 (a) 11,134
AAA Aaa 4,675 Series A, 5% due 12/01/2015 (e) 4,317
AAA Aaa 10,000 Series A, 5.50% due 12/01/2023 (b) 9,421
AAA Aaa 5,000 Series A, 5.25% due 12/01/2026 (a) 4,492
AAA Aaa 10,175 Series A, 5.50% due 12/01/2029 (b) 9,474
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Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series A:
AAA Aaa 2,070 6.375% due 7/01/2004 (b)(g) 2,203
AAA NR* 7,945 5.50% due 7/01/2014 (f) 7,913
AAA Aaa 2,000 5.75% due 7/01/2021 (b) 1,973
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AAA Aaa 3,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A,
4.75% due 4/01/2028 (f) 2,473
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Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds:
AAA Aaa 2,400 Series A, 6.10% due 7/01/2006 (e)(g) 2,561
AAA Aaa 5,605 Series A, 5.75% due 7/01/2021 (b) 5,550
AAA Aaa 2,500 Series C-1, 5.50% due 7/01/2022 (f) 2,377
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Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds:
AAA Aaa 5,000 Series A, 4.75% due 7/01/2024 (b) 4,157
AAA Aaa 350 Series B, 4.75% due 7/01/2026 (f) 289
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Monroe County, New York, IDA, Revenue Bonds (Southview Towers Project), AMT:
NR* Aa1 1,400 6.125% due 2/01/2020 1,377
NR* Aa1 1,125 6.25% due 2/01/2031 1,107
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AA Aa2 5,000 Municipal Assistance Corporation for the City of New York, Revenue Refunding Bonds, Series L,
6% due 7/01/2007 5,252
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AAA Aaa 1,205 Nassau County, New York, GO, Series B, 5.25% due 6/01/2024 (a) 1,091
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AAA Aaa 4,700 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2029 (e) 4,570
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AAA Aaa 2,500 New York City, New York, City Health and Hospital Corporation, Health System Revenue Refunding
Bonds, Series A, 5% due 2/15/2020 (a) 2,191
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NR* Aaa 5,750 New York City, New York, City IDA, Civic Facility Revenue Bonds (USTA National Tennis Center),
RIB, Series 206, 7.36% due 11/15/2014 (d)(e) 6,310
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New York City, New York, City Municipal Water Finance Authority, Water and Sewer System
Revenue Bonds:
AAA Aaa 1,050 Series A, 5% due 6/15/2027 (f) 905
AAA Aaa 12,100 Series B, 5.75% due 6/15/2026 (b) 11,843
AAA Aaa 21,350 Series B, 5.50% due 6/15/2027 (b) 20,131
AAA Aaa 22,200 Series B, 5.75% due 6/15/2029 (b) 21,617
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New York City, New York, City Municipal Water Finance Authority, Water and Sewer System
Revenue Refunding Bonds:
AAA Aaa 5,000 Series A, 6% due 6/15/2010 (f) 5,283
AAA Aaa 3,210 Series B, 5.25% due 6/15/2011 (e) 3,178
AAA Aaa 1,750 Series D, 4.75% due 6/15/2025 (b) 1,448
AAA Aaa 1,000 Series D, 4.75% due 6/15/2025 (f) 828
A1+ VMIG1+ 3,000 VRDN, Series A, 6.10% due 6/15/2025 (c)(f) 3,000
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New York City, New York, City Transit Authority, Metropolitan Transportation Authority,
Triborough, COP, Series A (a):
AAA Aaa 4,260 5.625% due 1/01/2010 4,370
AAA Aaa 2,020 5.625% due 1/01/2012 2,053
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New York City, New York, City Transitional Finance Authority Revenue Bonds:
AAA Aaa 5,000 Future Tax Secured, Series C, 5.50% due 5/01/2025 (f) 4,746
NR* VMIG1+ 1,000 Future Tax Secured, VRDN, Series C, 5.85% due 5/01/2028 (c) 1,000
NR* Aa3 7,500 RIB, Series 304, 7.11% due 11/15/2017 (d) 8,303
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</TABLE>
Portfolio
Abbreviations
To simplify the listings of MuniYield New York Insured 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
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
VRDN Variable Rate Demand Notes
6 & 7
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
STATE
New York
(continued)
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <S> <C>
New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds,
Future Tax Secured, Series C:
AA Aa3 $ 7,000 5.875% due 11/01/2015 $ 7,167
AA Aa3 5,000 5.875% due 11/01/2016 5,097
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New York City, New York, GO, Refunding:
AAA Aaa 2,700 Series A, 5.30% due 8/01/2012 (f) 2,660
AAA NR* 380 Series B, 7% due 2/01/2002 (a)(g) 399
AAA Aaa 2,000 Series B, 7% due 2/01/2017 (a) 2,091
AAA NR* 1,620 Series B, 7% due 2/01/2018 (a) 1,694
AAA Aaa 5,000 Series H, 5.375% due 8/01/2027 (e) 4,592
A1+ VMIG1+ 4,300 VRDN, Sub-Series E-2, 6% due 8/01/2020 (c) 4,300
A1+ VMIG1+ 4,000 VRDN, Sub-Series E-3, 6% due 8/01/2023 (c) 4,000
A1+ VMIG1+ 800 VRDN, Sub-Series E-5, 6% due 8/01/2009 (c) 800
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New York City, New York, GO, VRDN (c):
A1+ VMIG1+ 3,600 Sub-Series A-4, 5.50% due 8/01/2021 3,600
A1+ VMIG1+ 1,500 Sub-Series A-10, 6.10% due 8/01/2017 1,500
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A A3 14,970 New York City, New York, IDA, Special Facilities Revenue Bonds (Terminal One Group Association
Project), AMT, 6.125% due 1/01/2024 14,904
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New York State Dormitory Authority, Hospital Revenue Refunding Bonds
(Montefiore Medical Center) (a)(h):
AAA Aaa 15,000 5.45% due 8/01/2029 13,821
AAA Aaa 9,660 5.50% due 8/01/2038 8,884
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New York State Dormitory Authority, Lease Revenue Bonds:
AAA Aaa 4,000 (Municipal Health Facilities Improvement Program), Series 1, 5% due 1/15/2023 (e) 3,471
AAA Aaa 1,900 (Municipal Health Facilities Improvement Program), Series 1, 4.75% due 1/15/2029 (e) 1,546
AAA Aaa 2,000 (Municipal Health Facilities Improvement Program), Series A, 4.75% due 5/15/2024 (a) 1,662
AAA NR* 4,350 (Westchester County Municipal Court Facilities), 5.25% due 8/01/2017 (b) 4,095
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New York State Dormitory Authority Revenue Bonds:
NR* Aaa 1,000 (Brooklyn Hospital Center), 5.10% due 2/01/2019 (a)(h) 897
AAA NR* 2,460 (Champlain Valley Physicians), 5% due 7/01/2017 (i) 2,218
AAA NR* 1,000 (City University System), Consolidated Third Generation, Series 1, 5.75% due 7/01/2013 (e) 1,021
AAA Aaa 3,000 (City University System), Third Resolution, Series 1, 6.25% due 7/01/2004 (a)(g) 3,192
AAA Aaa 6,290 (City University), Third Generation Reserves, Series 1, 6.30% due 7/01/2004 (a)(g) 6,681
AAA Aaa 4,250 (Eger Health Care and Rehabilitation Center), 6.10% due 8/01/2037 (h) 4,190
AAA Aaa 2,000 (Ithaca College), 5.25% due 7/01/2026 (a) 1,796
A A3 2,340 (Mental Health Services Facilities Improvement), Series B, 6% due 8/15/2016 2,416
AAA Aaa 4,350 (Mental Health Services Facilities Improvement), Series F, 4.50% due 8/15/2028 (a) 3,380
AAA Aaa 1,000 (Mental Health Services), Series B, 6.50% due 2/15/2011 (b) 1,102
A NR* 2,430 (Miriam Osborn Memorial Home), Series B, 6.875% due 7/01/2019 2,573
A NR* 6,110 (Miriam Osborn Memorial Home), Series B, 6.875% due 7/01/2025 6,477
AAA Aaa 4,000 (Mount Sinai School of Medicine), Series A, 5.15% due 7/01/2024 (b) 3,591
AAA Aaa 2,000 (New School Social Research), 5.75% due 7/01/2026 (b) 1,955
AAA Aaa 2,000 (State University Educational Facilities), Series B, 5.75% due 5/15/2004 (f)(g) 2,057
AAA Aaa 5,480 (State University Educational Facilities), Series B, 5.50% due 5/15/2016 (b) 5,400
AAA Aaa 2,000 (University Educational Facilities), Series C, 5.375% due 5/15/2013 (b) 1,973
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New York State Dormitory Authority, Revenue Refunding Bonds:
AAA Aaa 13,230 (City University System), Consolidated Second Generation, Series A, 6.125% due 7/01/2012 (a) 14,049
AAA Aaa 4,400 (City University System), Series C, 7.50% due 7/01/2010 (f) 5,032
AAA Aaa 1,375 (Consolidated City University System), Second Generation, Series A, 5.75% due 7/01/2018 (e) 1,406
AAA Aaa 2,875 (Hamilton College), 4.75% due 7/01/2018 (b) 2,478
AAA NR* 4,250 (Hospital Mortgage--United Health Services Hospitals), 5.375% due 8/01/2027 (a)(h) 3,897
BBB+ Baa1 15,000 (Mount Sinai Health), Series A, 6.625% due 7/01/2018 15,193
AAA Aaa 4,340 (New York and Presbyterian Hospitals), 4.75% due 8/01/2027 (a)(h) 3,553
AAA Aaa 4,000 (North Shore University Hospital), 5.25% due 11/01/2019 (b) 3,671
AAA Aaa 12,145 RITR, Class R, Series 2, 7.049% due 7/01/2011 (a)(d) 13,820
AAA Aaa 8,870 (Saint John's University), 5.25% due 7/01/2025 (b) 8,021
AAA Aaa 5,250 (Saint John's University), 4.75% due 7/01/2028 (b) 4,292
AAA Aaa 5,850 (Saint Joseph's Hospital Health Center), 5.25% due 7/01/2018 (b) 5,411
AAA Aaa 6,000 (Siena College), 5.75% due 7/01/2026 (b) 5,865
AAA Aaa 1,500 (State University Educational Facilities), Series A, 5% due 5/15/2018 (b) 1,348
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New York State Energy Research and Development Authority, Facilities Revenue Refunding Bonds:
AAA Aaa 4,155 (Consolidated Edison Co. of New York), Series A, 6.10% due 8/15/2020 (a) 4,223
NR* Aaa 4,200 RITR, Series 19, 6.67% due 8/15/2020 (a)(d) 4,338
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New York State Energy Research and Development Authority, Gas Facilities Revenue Bonds
(Brooklyn Union Gas Company Project) (b):
AAA Aaa 5,000 AMT, Series B, 6.75% due 2/01/2024 5,235
AAA Aaa 26,000 Series A, 5.50% due 1/01/2021 24,854
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New York State Energy Research and Development Authority, PCR (Niagara Mohawk Power
Corporation Project) (c):
A1+ NR* 600 DATES, Series A, 3.55% due 7/01/2015 600
A1+ NR* 18,700 VRDN, AMT, 3.60% due 12/01/2023 18,700
------------------------------------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority, PCR, Refunding:
AAA Aaa 3,500 (Central Hudson Gas and Electric), Series A, 5.45% due 8/01/2027 (a) 3,278
NR* P1 300 (Niagara Mohawk Power Corporation), VRDN, Series B, 6.10% due 12/01/2025 (c) 300
------------------------------------------------------------------------------------------------------------------------------------
NR* Aa1 5,000 New York State Environmental Facilities Corporation, PCR, Refunding, RITR, Series RI-1,
6.095% due 6/15/2014 (d) 5,192
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,500 New York State Environmental Facilities Corporation, Special Obligation Revenue Refunding Bonds
(Riverbank State Park), 6.25% due 4/01/2012 (a) 3,797
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,745 New York State, HFA, Revenue Refunding Bonds, Housing Mortgage Project, Series A,
6.10% due 11/01/2015 (e) 2,802
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 13,350 New York State Local Government Assistance Corporation Revenue Bonds, Series A,
6% due 4/01/2024 (a) 13,409
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8 & 9
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
STATE
New York
(continued)
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <S> <C>
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa $ 2,485 (Brookdale Hospital Medical Center), Series A, 6.85% due 2/15/2005 (g) $ 2,707
AAA Aaa 5,375 (Health Center Project--Second Mortgage), Series A, 6.375% due 11/15/2019 (a) 5,568
AAA Aaa 1,475 (Mental Health Services), Series A, 6% due 2/15/2005 (b)(g) 1,554
AAA Aaa 25 (Mental Health Services), Series A, 6% due 2/15/2025 (b) 25
AAA Aaa 2,945 (Mental Health Services), Series E, 6.50% due 8/15/2004 (e)(g) 3,158
AAA Aaa 55 (Mental Health Services), Series E, 6.50% due 8/15/2015 (e) 58
AAA Aaa 10,100 (New York Hospital Mortgage), Series A, 6.80% due 2/15/2005 (a)(g)(h) 10,998
------------------------------------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Revenue Refunding Bonds (Hospital
& Nursing Homes) (h):
AAA NR* 2,000 Series B, 6.25% due 2/15/2025 2,070
AAA Aaa 15,200 Series C, 6.375% due 8/15/2029 (b) 15,851
------------------------------------------------------------------------------------------------------------------------------------
AAA NR* 20,000 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, AMT, Series 90,
6.35% due 10/01/2030 (b) 20,363
------------------------------------------------------------------------------------------------------------------------------------
NR* Aa1 22,430 New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 67,
5.80% due 10/01/2028 21,438
------------------------------------------------------------------------------------------------------------------------------------
NR* Aa1 4,750 New York State Mortgage Agency, Revenue Refunding Bonds, AMT, Series 82,
5.65% due 4/01/2030 4,397
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Bonds, Series A,
6.25% due 4/01/2011 (e) 2,151
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 8,840 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Refunding Bonds,
Series B, 5% due 4/01/2019 (f) 7,894
------------------------------------------------------------------------------------------------------------------------------------
AA- Aa3 19,000 New York State Thruway Authority Revenue Refunding Bonds, Series E, 5% due 1/01/2025 16,393
------------------------------------------------------------------------------------------------------------------------------------
New York State Thruway Authority, Service Contract Revenue Bonds (Local Highway and
Bridges Project) (b):
AAA Aaa 10,000 5.625% due 4/01/2012 10,159
AAA Aaa 10,000 Series A-2, 5.375% due 4/01/2010 10,057
AAA Aaa 2,000 Series A-2, 5.375% due 4/01/2016 1,939
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 New York State Thruway Authority, Service Contract Revenue Refunding Bonds (Local Highway
and Bridges Project), 6% due 4/01/2011 (b) 2,619
------------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corporation Revenue Bonds (Correctional Facilities
Service Contract) (a):
AAA Aaa 6,520 Series B, 4.75% due 1/01/2018 5,620
AAA Aaa 2,000 Series C, 5.875% due 1/01/2019 2,009
------------------------------------------------------------------------------------------------------------------------------------
New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional
Capital Facilities) (e):
AAA Aaa 2,000 5% due 1/01/2019 1,783
AAA Aaa 4,595 Series A, 6.50% due 1/01/2010 5,015
AAA Aaa 3,190 Series A, 6.50% due 1/01/2011 3,512
AAA Aaa 6,500 Series A, 5.25% due 1/01/2021 5,912
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25% due 11/01/2010 (b) 1,142
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara International
Airport), Series B, 5.50% due 4/01/2019 (b) 2,603
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,260 North Country, New York, Development Authority, Solid Waste Management System Revenue
Refunding Bonds, 6% due 5/15/2015 (e) 1,327
------------------------------------------------------------------------------------------------------------------------------------
North Hempstead, New York, GO, Refunding, Series B (f):
AAA Aaa 1,745 6.40% due 4/01/2013 1,924
AAA Aaa 555 6.40% due 4/01/2017 609
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,080 Oneida County, New York, GO, Refunding, 5.50% due 3/15/2009 (f) 1,098
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A,
5.20% due 2/01/2013 (e) 1,600
------------------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Consolidated Revenue Bonds (f):
AAA Aaa 6,200 116th Series, 4.50% due 10/01/2018 5,171
AAA Aaa 2,180 AMT, 97th Series, 6.50% due 7/15/2019 2,260
AAA Aaa 4,740 AMT, 117th Series, Second Installment, 4.75% due 11/15/2016 4,133
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, AMT,
119th Series, 5.50% due 9/15/2016 (f) 4,884
------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 4,000 Port Authority of New York and New Jersey, RITR, AMT, 108th Series, 6.285%
due 1/15/2017 (d)(e) 4,056
------------------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds (b):
NR* Aaa 1,000 (JFK International Air Terminal LLC), RIB, AMT, Series 157, 6.14% due 12/01/2022 (d) 946
AAA Aaa 3,500 (JFK International Air Terminal Project), AMT, Series 6, 5.75% due 12/01/2025 3,386
NR* Aaa 16,865 RIB, AMT, Series 243, 7.14% due 12/01/2010 (d) 19,593
------------------------------------------------------------------------------------------------------------------------------------
AAAr Aaa 12,085 Suffolk County, New York, IDA, Solid Waste Disposal Facility Revenue Refunding Bonds, RITR,
AMT, Class R, Series 1, 6.967% due 10/01/2010 (a)(d) 13,575
------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 2,850 Syracuse, New York, COP, Revenue Bonds, RIB, AMT, Series 207, 7.54% due 1/01/2017 (d)(f) 3,072
------------------------------------------------------------------------------------------------------------------------------------
A Baa1 4,000 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds (Convention
Center Project), Series E, 7.25% due 1/01/2010 4,412
------------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York, Special Obligation Revenue Refunding Bonds,
Series A (b):
AAA Aaa 2,265 5.125% due 1/01/2011 2,215
AAA Aaa 8,555 4.75% due 1/01/2024 7,127
------------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$786,834)--101.2% 784,098
Liabilities in Excess of Other Assets--(1.2%) (9,030)
--------
Net Assets--100.0% $775,068
========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AMBAC Insured.
(b) MBIA Insured.
(c) 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,
2000.
(d) 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, 2000.
(e) FSA Insured.
(f) FGIC Insured.
(g) Prerefunded.
(h) FHA Insured.
(i) Connie Lee Insured.
+Highest short-term rating by Moody's Investors Service, Inc.
*Not Rated.
See Notes to Financial Statements.
10 & 11
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<S> <C> <C> <C>
As of April 30, 2000
------------------------------------------------------------------------------------------------------------------------------------
Assets: Investments, at value (identified cost--$786,833,758)................... $784,097,541
Cash.................................................................... 10,273
Receivables:
Securities sold...................................................... $ 14,680,783
Interest............................................................. 12,003,163 26,683,946
------------
Prepaid expenses and other assets....................................... 23,121
------------
Total assets............................................................ 810,814,881
------------
------------------------------------------------------------------------------------------------------------------------------------
Liabilities: Payables:
Securities purchased................................................. 34,571,275
Dividends to shareholders............................................ 458,053
Reorganization costs................................................. 340,772
Investment adviser................................................... 300,656 35,670,756
------------
Accrued expenses and other liabilities.................................. 76,445
------------
Total liabilities....................................................... 35,747,201
------------
------------------------------------------------------------------------------------------------------------------------------------
Net Assets: Net assets.............................................................. $775,067,680
============
------------------------------------------------------------------------------------------------------------------------------------
Capital: Capital Stock (200,000,000 shares authorized):
Preferred Stock, par value $.05 per share (10,360 shares of AMPS*
issued and outstanding at $25,000 per share liquidation preference).. $259,000,000
Common Stock, par value $.10 per share (39,445,962 shares issued
and outstanding)..................................................... $ 3,944,596
Paid-in capital in excess of par........................................ 558,159,631
Undistributed investment income--net ................................... 4,062,721
Accumulated realized capital losses on investments--net................. (44,525,163)
Accumulated distributions in excess of realized capital gains on
investments--net........................................................ (2,837,888)
Unrealized depreciation on investments--net............................. (2,736,217)
------------
Total--Equivalent to $13.08 net asset value per share of Common Stock
(market price--$11.3125)................................................ 516,067,680
------------
Total capital........................................................... $775,067,680
============
------------------------------------------------------------------------------------------------------------------------------------
* Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<S> <C> <C> <C>
For the Six Months Ended April 30, 2000
------------------------------------------------------------------------------------------------------------------------------------
Investment
Income: Interest and amortization of premium and discount earned............. $ 11,776,322
------------------------------------------------------------------------------------------------------------------------------------
Expenses: Investment advisory fees................................................ $ 1,023,597
Reorganization expenses................................................. 419,909
Commission fees......................................................... 182,233
Transfer agent fees..................................................... 61,765
Accounting services..................................................... 33,105
Professional fees....................................................... 31,174
Custodian fees.......................................................... 16,239
Printing and shareholder reports........................................ 14,989
Listing fees............................................................ 10,656
Directors' fees and expenses............................................ 8,858
Pricing fees............................................................ 8,027
Other................................................................... 12,996
------------
Total expenses.......................................................... 1,823,548
------------
Investment income--net.................................................. 9,952,774
------------
------------------------------------------------------------------------------------------------------------------------------------
Realized & Realized loss on investments--net....................................... (12,392,249)
Unrealized Gain Change in unrealized depreciation on investments--net................... 18,862,094
(Loss) On ------------
Investments Net Increase in Net Assets Resulting from Operations.................... $ 16,422,619
--Net: ============
------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 2000 Oct. 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations: Investment income--net...................................................... $ 9,952,774 $ 13,036,798
Realized loss on investments--net........................................... (12,392,249) (833,436)
Change in unrealized appreciation/depreciation on investments--net.......... 18,862,094 (30,444,256)
------------ ------------
Net increase (decrease) in net assets resulting from operations............. 16,422,619 (18,240,894)
------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
Dividends & Investment income--net:
Distributions to Common Stock........................................................... (6,457,880) (11,176,190)
Shareholders: Preferred Stock........................................................ (2,361,661) (1,953,727)
Realized gain on investments--net:
Common Stock........................................................... -- (5,553,634)
Preferred Stock........................................................ -- (866,775)
In excess of realized gain on investments--net:
Common Stock........................................................... -- (2,454,828)
Preferred Stock........................................................ -- (383,133)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders............................................................. (8,819,541) (22,388,287)
------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
Capital Stock Proceeds from issuance of Common Stock resulting from reorganization........ 344,448,084 --
Transactions: Proceeds from issuance of Preferred Stock resulting from reorganization..... 174,000,000 --
Value of shares issued to Common Stock shareholders in reinvestment of
dividends and distributions................................................. 209,815 4,853,434
------------ ------------
Net increase in net assets derived from capital stock transactions.......... 518,657,899 4,853,434
------------ ------------
------------------------------------------------------------------------------------------------------------------------------------
Net Assets: Total increase (decrease) in net assets..................................... 526,260,977 (35,775,747)
Beginning of period......................................................... 248,806,703 284,582,450
------------ ------------
End of period*.............................................................. $775,067,680 $248,806,703
============ ============
------------------------------------------------------------------------------------------------------------------------------------
* Undistributed investment income--net................................... $ 4,062,721 $ 2,929,488
============ ============
------------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
12 & 13
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the Six
The following per share data and ratios have been derived Months Ended For the Year Ended October 31,
from information provided in the financial statements. April 30, -----------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period .......................... $ 13.02 $ 16.26 $ 15.89 $ 15.49 $ 15.64
Operating -------- -------- -------- -------- --------
Performance: Investment income--net ........................................ .38 1.03 1.12 1.15 1.15
Realized and unrealized gain (loss) on investments--net ....... .19 (2.47) .61 .48 (.03)
-------- -------- -------- -------- --------
Total from investment operations .............................. .57 (1.44) 1.73 1.63 1.12
-------- -------- -------- -------- --------
Less dividends and distributions to Common Stock shareholders:
Investment income--net ..................................... (.40) (.89) (.90) (.91) (.91)
Realized gain on investments--net .......................... -- (.45) (.19) (.07) --
In excess of realized gain on investments--net ............. -- (.20) -- -- (.10)
-------- -------- -------- -------- --------
Total dividends and distributions to Common Stock shareholders (.40) (1.54) (1.09) (.98) (1.01)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock shareholders:
Investment income--net ..................................... (.11) (.16) (.19) (.23) (.23)
Realized gain on investments--net .......................... -- (.07) (.08) (.02) --
In excess of realized gain on investments--net ............. -- (.03) -- -- (.03)
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity ...................... (.11) (.26) (.27) (.25) (.26)
-------- -------- -------- -------- --------
Net asset value, end of period ................................ $ 13.08 $ 13.02 $ 16.26 $ 15.89 $ 15.49
======== ======== ======== ======== ========
Market price per share, end of period ......................... $11.3125 $12.4375 $16.3125 $ 15.875 $ 14.875
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Total
Investment Based on market price per share ............................... (5.96%)++ (15.63%) 9.99% 13.79% 10.79%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share ............................ 3.87%++ (11.40%) 9.53% 9.37% 6.04%
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Ratios
Based on Total expenses, excluding reorganization expenses*** .......... 1.03%* 1.02% .98% 1.02% 1.02%
Average Net ======== ======== ======== ======== ========
Assets Total expenses*** ............................................. 1.14%* 1.02% .98% 1.02% 1.02%
Of Common ======== ======== ======== ======== ========
Stock: Total investment income--net*** ............................... 7.52%* 6.96% 7.07% 7.45% 7.46%
======== ======== ======== ======== ========
Amount of dividends to Preferred Stock shareholders ........... 1.74%* 1.04% 1.21% 1.51% 1.49%
======== ======== ======== ======== ========
Investment income--net, to Common Stock shareholders .......... 5.78%* 5.92% 5.86% 5.94% 5.97%
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Ratios
Based on Total expenses, excluding reorganization expenses ............. .68%* .71% .68% .70% .70%
Total ======== ======== ======== ======== ========
Average Net Total expenses ................................................ .75%* .71% .68% .70% .70%
Assets:***+ ======== ======== ======== ======== ========
Total investment income--net .................................. 4.99%* 4.79% 4.91% 5.09% 5.11%
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Ratios Dividends to Preferred Stock shareholders ..................... 3.42%* 2.30% 2.77% 3.33% 3.25%
Based on ======== ======== ======== ======== ========
Average Net
Assets Of
Preferred
Stock:
------------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) ................................................ $516,068 $163,807 $199,582 $192,107 $186,611
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period (in thousands) ..... $259,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000
======== ======== ======== ======== ========
Portfolio turnover ............................................ 108.81% 99.71% 89.76% 81.73% 80.59%
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Leverage: Asset coverage per $1,000 ..................................... $ 2,993 $ 2,927 $ 3,348 $ 3,260 $ 3,195
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
Dividends
Per Share Series A--Investment income--net .............................. $ 425 $ 566 $ 695 $ 826 $ 819
On Preferred ======== ======== ======== ======== ========
Stock Series B--Investment income--net .............................. $ 452 $ 583 $ 689 $ 837 $ 807
Outstanding: ======== ======== ======== ======== ========
Series C--Investment income--net .............................. $ 155 -- -- -- --
======== ======== ======== ======== ========
Series D--Investment income--net .............................. $ 132 -- -- -- --
======== ======== ======== ======== ========
Series E--Investment income--net .............................. $ 82 -- -- -- --
======== ======== ======== ======== ========
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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
charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Includes Common and Preferred Stock average net assets.
++ Aggregate total investment return.
++++ The Fund's Preferred Stock was issued on September 16, 1992 for Series A
and Series B and on March 6, 2000 for Series C, Series D and Series E.
See Notes to Financial Statements.
14 & 15
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New York Insured Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. The Fund's financial statements are prepared in accordance
with accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. 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 MYN. 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 prices as of the
close of such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price (options
written) or the last bid price (options purchased). Securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets 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
investment strategies to increase or decrease the level of risk to which the
Fund is exposed more quickly and efficiently than transactions in other types of
instruments. Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract.
o Financial futures contracts--The Fund may purchase or sell financial 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.
o 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.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates. Distributions in excess of realized capital gains are due
primarily to differing tax treatments for futures transactions and post-October
losses.
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 .50% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock.
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, 2000 were $524,521,333 and $410,134,686, respectively.
Net realized losses for the six months ended April 30, 2000 and net unrealized
losses as of April 30, 2000 were as follows:
--------------------------------------------------------------------------------
Realized Unrealized
Losses Losses
--------------------------------------------------------------------------------
Long-term investments $(10,692,150) $(2,736,217)
Financial futures contracts (1,700,099) --
------------ -----------
Total $(12,392,249) $(2,736,217)
============ ===========
--------------------------------------------------------------------------------
As of April 30, 2000, net unrealized depreciation for Federal income tax
purposes aggregated $2,736,217, of which $10,390,748 related to appreciated
securities and $13,126,965 related to depreciated securities. The aggregate cost
of investments at April 30, 2000 for Federal income tax purposes was
$786,833,758.
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
Shares issued and outstanding during the six months ended April 30, 2000
increased by 26,844,207 as a result of issuance of Common Stock from
reorganization and by 16,328 as a result of dividend reinvestment. Shares issued
and outstanding during the year ended October 31, 1999 increased by 311,133 as a
result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred Stock of the
Fund, with a par value of $.05 per share and a liquidation preference of $25,000
per share, that entitle their
16 & 17
<PAGE>
MuniYield New York Insured Fund, Inc., April 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
holders to receive cash dividends at an annual rate that may vary for the
successive dividend periods. The yields in effect at April 30, 2000 were as
follows: Series A, 3.85%; Series B, 4.15%; Series C, 4.20%; Series D, 4.30%; and
Series E, 3.85%.
Shares issued and outstanding during the six months ended April 30, 2000
increased by 6,960 as a result of issuance of Preferred Stock from
reorganization. Shares issued and outstanding during the year ended October 31,
1999 remained constant.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended April 30, 2000, Merrill Lynch, Pierce, Fenner
& Smith Incorporated, an affiliate of FAM, earned $87,691 as commissions.
5. Capital Loss Carryforward:
At October 31, 1999, the Fund had a net capital loss carryforward of
approximately $2,080,000, all of which expires in 2007. This amount will be
available to offset like amounts of any future taxable gains.
6. Reorganization Plan:
On March 6, 2000, the Fund acquired all of the net assets of MuniYield New York
Insured Fund II, Inc. pursuant to a plan of reorganization. The acquisition was
accomplished by a tax-free exchange of 26,668,886 Common Stock shares and 6,960
AMPS shares of MuniYield New York Insured Fund II, Inc. for 26,844,207 Common
Stock shares and 6,960 AMPS shares of the Fund. MuniYield New York Insured Fund
II, Inc.'s net assets on that date of $518,448,084, including $7,644,825 of
unrealized depreciation and $32,132,913 of accumulated net realized capital
losses, were combined with those of the Fund. The aggregate net assets of the
Fund immediately after the acquisition amounted to $765,145,772.
7. Subsequent Event:
On May 5, 2000, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.064266 per share,
payable on May 30, 2000 to shareholders of record as of May 16, 2000.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more consistent yield to the current trading price of shares
of Common Stock of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any month pay out such accumulated but undistributed income in addition to
net investment income earned in that month. As a result, the dividends paid by
the Fund for any particular month may be more or less than the amount of net
investment income earned by the Fund during such month. The Fund's current
accumulated but undistributed net investment income, if any, is disclosed in the
Statement of Assets, Liabilities and Capital, which comprises part of the
Financial Information included in this report.
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 2000 were as
follows:
-----------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
-----------------------------------------------------------------
AAA/Aaa........................................ 80.6%
AA/Aa.......................................... 9.8
A/A............................................ 4.0
BBB/Baa........................................ 1.9
Other*......................................... 4.9
-----------------------------------------------------------------
*Temporary investments in short-term municipal securities.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
James H. Bodurtha, Director
Herbert I. London, Director
Joseph L. May, Director
Andre F. Perold, Director
Roberta Cooper Ramo, Director
Arthur Zeikel, Director
Vincent R. Giordano, Senior Vice President
Kenneth A. Jacob, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
--------------------------------------------------------------------------------
Robert R. Martin, Director of MuniYield New York Insured Fund, Inc. has recently
retired. The Fund's Board of Directors wishes Mr. Martin well in his retirement.
--------------------------------------------------------------------------------
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
Preferred Stock:
The Bank of New York
100 Church Street
New York, NY 10286
NYSE Symbol
MYN
18 & 19
<PAGE>
MuniYield New York Insured Fund, Inc. seeks to provide shareholders with as high
a level of current income exempt from Federal, New York State and New York City
income taxes as is consistent with its investment policies and prudent
investment management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond counsel to
the issuer, is exempt from Federal, New York State and New York City income
taxes.
This report, including the financial information herein, is transmitted to
shareholders of MuniYield New York Insured Fund, Inc. for their information. It
is not a prospectus. 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.
MuniYield New York
Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16159--4/00
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