MuniYield Florida Fund
Semi-Annual
Report
April 30, 1994
Officers and Trustees
Arthur Zeikel, President and Trustee
Kenneth S. Axelson, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
110 Washington Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MYF
<PAGE>
This report, including the financial information
herein, is transmitted to the shareholders of
MuniYield Florida Fund 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 re-
port. Past performance results shown in this
report should not be considered a representation
of future performance. The Fund has leveraged
its Common Shares by issuing Preferred Shares to
provide the Common Shareholders with a poten-
tially higher rate of return. Leverage creates
risks for Common Shareholders, including the
likelihood of greater volatility of net asset
value and market price of shares of the Common
Shares, and the risk that fluctuations in the
short-term dividend rates of the Preferred
Shares may affect the yield to Common Share-
holders.
MuniYield Florida Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Fund
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1994, the Common Shares
of MuniYield Florida Fund earned $0.584 per share income divi-
dends, which includes earned and unpaid dividends of $0.076.
This represents a net annualized yield of 8.08%, based on a
month-end per share net asset value of $14.59. Over the same
period, the total investment return on the Fund's Common Shares
was -7.66%, based on a change in per share net asset value from
$16.74 to $14.59, and assuming reinvestment of $0.592 per share
income dividends and $0.326 per share capital gains
distributions.
For the six-month period ended April 30, 1994, the Fund's Auc-
tion Market Preferred Shares had an average yield of 2.75%.
<PAGE>
The Environment
Inflationary expectations and investor sentiment changed for
the worse during the three-month period ended April 30, 1994.
Following stronger-than-expected economic results through year-
end 1993, the Federal Reserve Board broke with tradition on Feb-
ruary 4, 1994 and publicly announced a modest 25 basis point
(0.25%) increase in short-term interest rates. At the March 22
meeting of the Federal Open Market Committee, the Federal Re-
serve Board again raised the Federal Funds rate by 25 basis
points, followed by another 25 basis point increase on April 18.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income in-
vestors focused on Chairman Greenspan's implicit promise of fur-
ther tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second and third increases in the Federal Funds rate were less
of a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively
attempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product growth
rate for the first calendar quarter of 1994. Instead, investors
focused on the higher-than-expected (but still moderate) broad
inflation measures and became concerned that business activity
was beginning to stagnate as inflationary pressures were in-
creasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic de-
velopments, along with concerns of heightened global inflation-
ary pressures, led to a sell-off in most capital markets, es-
pecially the emerging markets that had appreciated strongly in
1993.
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds maturing in 30 years rose over 90 basis points to 6.42%
by the end of April. Yields on seasoned municipal revenue bonds
rose by over 100 basis points in sympathy with the equally drama-
tic increase in US Treasury bond yields. By the end of April,
yields of US Treasury securities rose by over 95 basis points
to approximately 7.30%.
<PAGE>
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid
economic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal
Reserve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate in-
creases. This fear led investors to withdraw from the tax-exempt
market. From early February to the end of March, total assets
of all tax-exempt bond funds declined by $14 billion to $247
billion. This decline in investor demand, coupled with fears
that the robust economic recovery seen during the fourth quar-
ter of 1993 would continue well into 1994, helped push municipal
bond yields higher in February and March. Attracted by tax-exempt
yields in excess of 6.25%, investor demand returned in April,
allowing yields to decline approximately 15 basis points to end
the April period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that exper-
ienced over the past six months has not been seen since 1987
when municipal bond rates rose 250 basis points between March
and October of that year. It is very important to note that the
recent municipal bond price declines were largely the result of
consistent and insistent selling pressures over the last two
months. In 1987, the tax-exempt bond market was much more vola-
tile and, at times, chaotic as investors sought to liquidate
positions without concern for fundamental value. For the most
part, the recent price deterioration has been orderly, and the
municipal bond market's liquidity and integrity have not been
challenged or jeopardized.
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This rep-
resents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been dis-
cussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance. Just as higher
mortgage rates slow home mortgage refinancings, the recent rise
in bond yields will prevent bond refinancings from becoming the
driving force in bond issuance in 1994 as they were in 1993.
<PAGE>
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yielded
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing es-
timates of 1994 inflation at no more than 3%--4%, real after-
tax rates in excess of 6.50% easily compensate longer-term in-
vestors for much of the price volatility recently experienced.
Portfolio Strategy
Our interest rate forecast for the second half of 1994 is con-
structive because of the predicted slowing of the economy and
the reduction in the new-issue supply of municipal bonds. The
Fund's strategy during the volatile six-month period ended April
30, 1994 was to increase current yield as interest rates rose as
well as to purchase bonds that we expect to perform well when
interest rates rally.
We purchased discount bonds with maturities longer than 15 years
to seek to enable the Fund to take advantage of the slower eco-
nomy forecast for the rest of 1994. In addition, the Fund ex-
tended its Preferred Shares' maturity to February 1995 because
of the current Federal Reserve Board policy of raising short-term
interest rates to keep inflation in check. The new interest rate
set for the Fund's Preferred Shares is 3.07%, while interest
rates on securities maturing in 25 years are ranging from 6%--
6.50%.
We appreciate your ongoing interest in MuniYield Florida Fund,
and we look forward to serving your investment needs and
objectives in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
June 1, 1994
<PAGE>
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield Florida Fund utilizes leveraging to seek to enhance the
yield and net asset value of its Common Shares. However, these
objectives cannot be achieved in all interest rate environments.
To leverage, the Fund issues Preferred Shares, which pay divi-
dends 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 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 Shares.
However, in order to benefit Common 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
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 Share cap-
italization of $100 million and the issuance of Preferred Shares
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds.
If prevailing short-term interest rates are 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 Shares 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.
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental yield pick-up
on the Common Shares will be reduced. At the same time, the
market value of the fund's Common Shares (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 Shares'
net asset value will reflect the full decline in the price of the
portfolio's investments, since the value of the fund's Preferred
Shares do not fluctuate. In addition to the decline in net asset
value, the market value of the fund's Common Shares may also
decline.
<PAGE>
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Net Unrealized Dividends/Distributions
Investment Realized Gains Net Investment Income Capital Gains
For the Quarter Income Gains (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $.31 $.03 $ 1.26 $.30 $.07 -- --
August 1, 1992 to October 31, 1992 .31 .04 (1.17) .25 .06 -- --
November 1, 1992 to January 31, 1993 .30 .09 .82 .24 .05 $.04 $.01
February 1, 1993 to April 30, 1993 .29 .04 .67 .24 .06 -- --
May 1, 1993 to July 31, 1993 .29 .26 .11 .24 .05 -- --
August 1, 1993 to October 31, 1993 .29 .14 .53 .25 .04 -- --
November 1, 1993 to January 31, 1994 .30 .04 .17 .24 -- .43 .07
February 1, 1994 to April 30, 1994 .28 .03 (1.93) .24 .05 -- .01
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $15.44 $14.05 $16.375 $14.875 392
August 1, 1992 to October 31, 1992 15.22 13.97 16.125 14.75 165
November 1, 1992 to January 31, 1993 14.99 14.14 15.875 14.75 415
February 1, 1993 to April 30, 1993 15.97 14.98 16.125 15.125 541
May 1, 1993 to July 31, 1993 16.30 15.59 16.625 15.125 722
August 1, 1993 to October 31, 1993 17.08 16.08 16.875 15.875 734
November 1, 1993 to January 31, 1994 16.69 16.09 17.00 15.25 547
February 1, 1994 to April 30, 1994 16.49 14.15 16.25 13.75 998
<FN>
*Calculations are based upon Common Shares outstanding at the
end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield Florida Fund'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)
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida--98.7%
<S> <S> <C> <S> <C>
Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River):
A+ A1 $13,700 Series A, 6.625% due 1/01/2027 $ 14,017
A+ A1 3,000 Series B, 6.35% due 2/01/2022 3,018
Dade County, Florida, Aviation Revenue Bonds:
AAA Aaa 1,000 AMT, Series B, 6.55% due 10/01/2013 (c) 1,032
AAA Aaa 5,000 AMT, Series B, 6.60% due 10/01/2022 (c) 5,136
A Aa 2,000 Refunding, Series Y, 5.50% due 10/01/2011 1,836
AAA Aaa 4,000 Dade County, Florida, Seaport Revenue Bonds, UT, 6.25% due 10/01/2021 (b) 4,011
A-1 VMIG1 100 Dade County, Florida, Solid Waste, IDR, VRDN (Montenay-Dade Ltd. Project), Series A,
3.70% due 12/01/2013 (a) 100
A1+ VMIG1 100 Dade County, Florida, Special Obligation Revenue Bonds (Capital Asset Acquisition),
VRDN, 3.25% due 10/01/2010 (a) 100
NR Aaa 2,500 Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series A, 6.90% due 4/01/2020 (f) 2,539
AAA Aaa 14,000 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project), 5.80% due
6/01/2023 (c) 13,071
<PAGE>
Florida Board of Education Revenue Bonds:
AA Aa 10,000 Series A, 6.75% due 6/01/2021 10,481
AA+ Aa 6,000 Series B, 6.70% due 6/01/2022 6,227
Florida State Division, Board of Finance, Department of General Services Revenue
Bonds (Department of Natural Resource Preservation) (b):
AAA Aaa 2,000 Series 2000-A, 6.75% due 7/01/2007 2,132
AAA Aaa 4,500 Series 2000-A, 6.75% due 7/01/2013 4,813
Florida State Municipal Power Agency Revenue Bonds (b):
AAA Aaa 2,000 (All Requirements Power Supply Project), 5.10% due 10/01/2014 1,747
AAA Aaa 2,500 Refunding (Stanton II Project), 4.50% due 10/01/2027 1,864
AAA Aaa 1,000 Florida State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A, 5%
due 7/01/2019 (d) 844
Gainesville, Florida, Utility Systems Revenue Bonds:
AA Aa 2,000 Series A, 6.50% due 10/01/2022 2,069
AA Aa 1,600 Series B, 6.50% due 10/01/2010 1,683
Greater Orlando Aviation Authority, Florida, Revenue Bonds (Orlando Airport
Facilities), AMT, Series A (d):
AAA Aaa 4,000 6.50% due 10/01/2012 4,060
AAA Aaa 1,855 6.375% due 10/01/2021 1,870
Hillsborough County, Florida, Capital Improvement Program Revenue Bonds:
A A 4,500 (County Center Project), Second Series, 6.75% due 7/01/2022 4,701
AAA NR 1,500 Series A, Sub-Series 2, 8.20% due 2/01/1996 (g) 1,624
AAA Aaa 1,500 Hillsborough County, Florida, Hospital Authority, Revenue Refunding Bonds (Tampa
General Hospital Project), 6.375% due 10/01/2013 (e) 1,528
A1+ VMIG1 2,100 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project),
VRDN, 3% due 5/15/2018 (a) 2,100
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegheny Health Systems), 6.375%
due 12/01/2012 (c) 1,017
AAA Aaa 1,500 Jacksonville Beach, Florida, Utility Revenue Bonds, 6.50% due 10/01/2001 (c)(g) 1,634
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (concluded)
<S> <S> <C> <S> <C>
Jacksonville, Florida, Electric Authority Revenue Bonds (Bulk Power Supply--
Scherer 4-1-A):
AA Aaa $ 3,000 6.75% due 10/01/2000 (g) $ 3,288
AA Aaa 2,750 6.75% due 10/01/2000 (g) 3,014
AA Aa1 1,500 Refunding, Series A, 5.25% due 10/01/2021 1,296
Jacksonville, Florida, Excise Tax Revenue Bonds, Series A (b):
AAA Aaa 1,200 6.50% due 10/01/2011 1,228
AAA Aaa 3,250 6.50% due 10/01/2016 3,297
AAA NR 4,500 Jacksonville, Florida, Hospital Revenue Bonds (University Medical Center, Inc.
Project), 6.60% due 2/01/2013 4,626
BBB- NR 1,000 Largo, Florida, Sun Coast Health System, Hospital Revenue Refunding Bonds, 6.20% due
3/01/2013 953
AAA Aaa 4,000 Lee County, Florida, Solid Waste Systems Revenue Bonds, Series A, AMT, 6.50% due
10/01/2013 (c) 4,096
AAA Aaa 1,250 Melbourne, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 5% due
10/01/2022 (d) 1,043
AAA Aaa 3,750 Orange County, Florida, Solid Waste Facilities Revenue Bonds, 6.375% due 10/01/2017
(d) 3,797
AAA Aaa 5,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series B, 6.50% due
10/01/2019 (b) 5,098
Orlando, Florida, Utilities Commission Water and Electric Revenue Bonds:
AA- Aaa 11,320 Series A, 6.50% due 10/01/2020 12,319
AA- Aa 500 Sub-Series A, 5% due 10/01/2012 435
NR VMIG1 300 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 2.95% due
10/01/2011 (a) 300
A-1 VMIG1 1,800 Pinellas County, Florida, Health Facility Authority, Revenue Refunding Bonds (Pooled
Hospital Loan Program), DATES, 2.95% due 12/01/2015 (a) 1,800
AAA Aaa 5,000 Reedy Creek, Florida, Improvement District Utility Revenue Bonds, Series 1991-1,
6.50% due 10/01/2001 (c)(g) 5,407
<PAGE>
AAA Aaa 2,000 Saint Petersburg, Florida, Excise Tax Revenue Refunding Bonds, 5% due 10/01/2016 (d) 1,713
Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds (c):
AAA Aaa 2,000 (Allegheny Health System), Series A, 7% due 12/01/2015 2,168
AAA Aaa 1,550 (Allegheny Health System--Saint Anthony's), 6.75% due 12/01/2021 1,601
AAA Aaa 2,000 Seacoast, Florida, Utility Authority, Water and Sewage Revenue Refunding Bonds, 5.50%
due 3/01/2010 (d) 1,908
A+ A1 7,500 South Broward, Florida, Hospital District, Revenue Refunding Bonds, 5.50% due
5/01/2028 6,414
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegheny Health Systems Saint Joseph), 6.75% due
12/01/2017 (c) 3,096
AAA Aaa 3,000 Vero Beach, Florida, Electric Revenue Bonds, Series A, 6.60% due 12/01/1999 (d)(g) 3,265
Total Investments (Cost--$164,702)--98.7% 167,416
Other Assets Less Liabilities--1.3% 2,219
--------
Net Assets--100.0% $169,635
========
<FN>
(a) The interest rate is subject to change periodically
based upon the prevailing market rate. The interest
rates shown are the rates in effect at April 30, 1994.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) FSA Insured.
(f) GNMA Collateralized.
(g) Prerefunded.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1994
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$164,702,029) (Note 1a) $167,416,227
Cash 38,571
Interest receivable 2,397,270
Deferred organization expenses (Note 1e) 26,598
Prepaid expenses and other assets 127,641
------------
Total assets 170,006,307
------------
Liabilities: Payables:
Dividends to shareholders (Note 1g) 304,000
Investment adviser (Note 2) 67,364
------------
Total liabilities 371,364
------------
Net Assets: Net assets $169,634,943
============
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized)(Note 4):
Preferred Shares, par value $.10 per share (1,100 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 55,000,000
Common Shares, par value $.10 per share (7,858,776 shares issued
and outstanding) $ 785,878
Paid-in capital in excess of par 109,597,865
Undistributed investment income--net 1,005,491
Undistributed realized capital gains--net 531,511
Unrealized appreciation on investments--net 2,714,198
------------
Total--Equivalent to $14.59 net asset value per Common Share
(market price--$14.00) 114,634,943
------------
Total capital $169,634,943
============
<FN>
* Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended April 30, 1994
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,180,364
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 445,926
Commission fees (Note 4) 88,390
Professional fees 36,383
Accounting services (Note 2) 16,908
Transfer agent fees 16,342
Printing and shareholder reports 14,209
Trustees' fees and expenses 10,771
Listing fees 8,661
Custodian fees 6,028
Amortization of organization expenses (Note 1e) 3,721
Pricing fees 3,003
Other 13,187
------------
Total expenses 663,529
------------
Investment income--net 4,516,835
------------
Realized & Realized gain on investments--net 531,512
Unrealized Change in unrealized appreciation on investments--net (13,792,494)
Gain (Loss) on ------------
Investments--Net Net Decrease in Net Assets Resulting from Operations $ (8,744,147)
(Notes 1d & 3): ============
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1994 Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 4,516,835 $ 9,088,907
Realized gain on investments--net 531,512 4,018,658
Change in unrealized appreciation on investments--net (13,792,494) 16,471,373
------------ ------------
Net increase (decrease) in net assets resulting from operations (8,744,147) 29,578,938
------------ ------------
Dividends & Investment income--net:
Distributions Common Shares (3,795,762) (7,474,609)
To Shareholders Preferred Shares (359,998) (1,580,809)
(Note 1g): Realized gain on investments--net:
Common Shares (3,373,293) (274,178)
Preferred Shares (645,359) (67,859)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (8,174,412) (9,397,455)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment
Transactions of dividends 1,278,281 1,552,631
(Notes 1e & 4): ------------ ------------
Net increase in net assets derived from capital share transactions 1,278,281 1,552,631
------------ ------------
Net Assets: Total increase (decrease) in net assets (15,640,278) 21,734,114
Beginning of period 185,275,221 163,541,107
------------ ------------
End of period* $169,634,943 $185,275,221
============ ============
<FN>
* Undistributed investment income--net $ 1,005,491 $ 644,416
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
For the Six Period
The following per share data and ratios have been derived Months For the February 28,
from information provided in the financial statements. Ended Year Ended 1992++ to
April 30, October 31, October 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 16.74 $ 14.13 $ 14.18
Operating ---------- ---------- ----------
Performance: Investment income--net .58 1.17 .77
Realized and unrealized gain (loss) on investments--net (1.69) 2.66 .05
---------- ---------- ----------
Total from investment operations (1.11) 3.83 .82
---------- ---------- ----------
Less dividends and distributions to Common Shareholders:
Investment income--net (.48) (.97) (.55)
Realized gain on investments--net (.43) (.04) --
---------- ---------- ----------
Total dividends and distributions to Common Shareholders (.91) (1.01) (.55)
---------- ---------- ----------
Capital charge resulting from issuance of Common Shares -- -- (.03)
---------- ---------- ----------
Effect of Preferred Share activity:++++
Dividends and distributions to Preferred Shareholders:
Investment income--net (.05) (.20) (.14)
Realized gain on investments--net (.08) (.01) --
Capital charge resulting from issuance of Preferred
Shares -- -- (.15)
---------- ---------- ----------
Total effect of Preferred Share activity (.13) (.21) (.29)
---------- ---------- ----------
Net asset value, end of period $ 14.59 $ 16.74 $ 14.13
========== ========== ==========
Market price per share, end of period $ 14.00 $ 16.625 $ 14.75
========== ========== ==========
Total Investment Based on market price per share (10.78%)+++ 20.13% 2.05%+++
Return:** ========== ========== ==========
Based on net asset value per share (7.66%)+++ 26.27% 3.41%+++
========== ========== ==========
Ratios to Average Expenses, net of reimbursement .74%* .78% .58%*
Net Assets:*** ========== ========== ==========
Expenses .74%* .78% .76%*
========== ========== ==========
Investment income--net 5.05%* 5.16% 5.59%*
========== ========== ==========
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 114,635 $ 130,275 $ 108,541
========== ========== ==========
Preferred Shares outstanding, end of period (in thousands) $ 55,000 $ 55,000 $ 55,000
========== ========== ==========
Portfolio turnover 3.40% 32.84% 16.18%
========== ========== ==========
Dividends Per Share Investment income--net $ 327 $ 1,437 $ 934
On Preferred Shares
Outstanding:
<FN>
* Annualized.
** Total investment returns based on market value, which
can be significantly greater or lesser than the net
asset value, result in substantially different returns.
Total investment returns exclude the effects of sales
loads.
*** Do not reflect the effect of dividends to Preferred
Shareholders.
++ Commencement of Operations.
++++ The Fund's Preferred Shares were issued on April 10, 1992.
+++ Aggregate total investment returns.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Fund (the "Fund") is registered under the In-
vestment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund determines and makes
available for publication the net asset value of its Common
Shares on a weekly basis. The Fund's Common Shares are listed on
the New York Stock Exchange under the symbol MYF. The following
is a summary of significant accounting policies followed by the
Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded pri-
marily in the over-the-counter markets and are valued at the
most recent bid price or yield equivalent as obtained by the
Fund's pricing service from dealers that make markets in such
securities. Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the close
of such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Secur-
ities 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 Trustees of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures con-
tracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures con-
tracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon enter-
ing into a contract, the Fund deposits and maintains as collateral
such initial margin as required by the exchange on which the trans-
action 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 pay-
ments 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 be-
tween the value of the contract at the time it was opened and the
value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the re-
quirements 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 trans-
actions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the
accrual basis. Discounts and market premiums are amortized into
interest income. Realized gains and losses on security trans-
actions are determined on the identified cost basis.
(e) Deferred organization--Deferred organization expenses are
amortized on a straight-line basis over a five-year period.
<PAGE>
(f) Non-income producing investments--Written and purchased op-
tions are non-income producing investments.
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, 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 trustees of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term secur-
ities, for the six months ended April 30, 1994 were $5,912,730 and
$11,828,928, respectively.
<PAGE>
Net realized and unrealized gains as of April 30, 1994 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 531,512 $ 2,714,198
--------- -----------
Total $ 531,512 $ 2,714,198
========= ===========
As of April 30, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $2,714,198, of which $5,863,685
related to appreciated securities and $3,149,487 related to de-
preciated securities. The aggregate cost of investments at April
30, 1994 for Federal income tax purposes was $164,702,029.
4. Capital Share Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, including Preferred Shares, par value $.10
per share, all of which were initially classified as Common Shares.
The Board of Trustees is authorized, however, to reclassify any
unissued shares of beneficial interest without approval of the
holders of Common Shares.
Common Shares
For the six months ended April 30, 1994, shares outstanding in-
creased by 78,808 to 7,858,776 as a result of dividend reinvest-
ment. At April 30, 1994, total paid-in capital amounted to
$110,383,743.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of
the Fund that entitle their holders to receive cash dividends at
an annual rate that may vary for the successive dividend periods.
The yield in effect at April 30, 1994 was 3.07%.
<PAGE>
For the six months ended April 30, 1994, there were 1,100 AMPS
authorized, issued and outstanding with a liquidation preference
of $50,000 per share, plus accumulated and unpaid dividends of
$385,527.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated
on the proceeds of each auction. For the six months ended April
30, 1994, MLPF&S, an affiliate of MLIM, earned $51,996 as com-
missions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Trustees declared an ordinary
income dividend to holders of Common Shares in the amount of $.076051
per share, payable on May 27, 1994 to shareholders of record as of
May 17, 1994.
