MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1995
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 men-
tioned in the report. Past performance results shown in
this report should not be considered a representation
of future performance. The Fund has leveraged its
Common Shares by issuing Preferred Shares to provide
the Common Shareholders with a potentially higher
rate of return. Leverage creates risks for Common
Shareholders, including the likelihood of greater volatili-
ty 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 Shareholders.
<PAGE>
MuniYield
Florida Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Fund
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1995, the
Common Shares of MuniYield Florida Fund earned
$0.447 per share income dividends, which included
earned and unpaid dividends of $0.071. This represents
a net annualized yield of 6.28%, based on a month-end
per share net asset value of $14.35. Over the same
period, the total investment return on the Fund's
Common Shares was +7.49%, based on a change in per
share net asset value from $13.82 to $14.35, and
asssuming reinvestment of $0.454 per share income
dividends.
The average yield of the Fund's Auction Market Pre-
ferred Shares for the six months ended April 30, 1995
was 3.44%.
The Environment
During the six months ended April 30, 1995, the
perception that the US economy was overheating and
inflationary pressures were increasing gave way to a
more benign economic outlook. With more signs of
slowing growth, investors now appear to be fore-
casting a "soft landing" for the US economy. Although
gross domestic product was reported to have increased
at a revised 5.1% rate during the final quarter of 1994,
declines in other indicators such as new home sales
and durable goods orders registered thus far in 1995
have led investors to anticipate that the economy is
losing enough momentum to keep inflation under
control and preclude further significant monetary
policy tightening by the Federal Reserve Board. A
further indication of a slowing economy was the
reported decline in the Index of Leading Economic
Indicators for March.
<PAGE>
As US stock and bond markets have risen on more
positive economic news, the value of the US dollar has
reached new lows relative to the yen and the
Deutschemark. Persistent trade deficits and exports
of capital from the United States have kept the US
currency in a decade-long decline relative to the
Japanese and German currencies. Over the longer
term, since the United States has the highest produc-
tivity among industrialized nations and among the
lowest labor costs, demand for US dollar-denominated
assets may improve. However, a reduction of the still-
widening US trade deficit may be necessary before
the US dollar appreciates substantially relative to the
yen and the Deutschemark.
The first months of 1995 have been very positive for
the stock and bond markets. Continued signs of a
moderating expansion and well-contained inflationary
pressures would provide further assurance that the
peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further sig-
nificant monetary policy tightening by the Federal
Reserve Board would be a decided negative for the US
financial markets.
The Municipal Market
During the six-month period ended April 30, 1995, the
tax-exempt bond market gradually recouped much of
the losses sustained during 1994. Signs of a weakening
domestic economy and ongoing moderate inflationary
pressures have fostered an environment of declining
interest rates. Since October 31, 1994, A-rated, unin-
sured municipal revenue bond yields, as measured by
the Bond Buyer Revenue Bond Index, have declined
over 65 basis points (0.65%) to close the six-month
period ended April 30, 1995 at 6.29%. Tax-exempt
bond yields initially continued to climb in late 1994,
reaching a high of 7.37% in late November 1994. Muni-
cipal bond yields have since declined over 100 basis
points from their recent highs and are presently lower
than they were a year ago. US Treasury bond yields
have experienced similar declines over the last six
months to end the April period at 7.34%.
<PAGE>
Much of the recent improvement in the tax-exempt
bond market, however, has occurred over the last
three months. During this most recent quarter, munici-
pal bond yields have fallen approximately 50 basis
points, while US Treasury bond yields declined only
35 basis points. Tax-exempt bond yields declined more
than their taxable counterparts in recent months,
largely in response to the significant decline in new
bond issuance in recent quarters. Over the last six
months, less than $60 billion in new long-term
municipal securities were underwritten, a decline of
nearly 45% versus the comparable period a year
earlier. Issuance was particularly low this past
January and February, with monthly volume of less
than $8 billion. These levels are the lowest monthly
totals since the mid-1980s.
To compound the municipal market's already strong
technical posture, both institutional and individual
investors have seen significant cash inflows in recent
months. These assets were derived from regular cou-
pon payments, bond maturities and the proceeds from
early bond calls and redemptions. It has been esti-
mated that investors received over $20 billion in prin-
cipal redemptions and coupon income in January
1995 alone. With monthly issuance in the $10 billion
range thus far this year, the current supply/demand
imbalance has dominated the municipal market and
bond prices have risen accordingly. The tax-exempt
bond market's technical position is likely to remain
very strong throughout most of 1995. Investors are
expected to receive almost $40 billion in principal
and coupon payments on July 1, 1995. Investor pro-
ceeds from all sources have been estimated to exceed
$200 billion for all of 1995. Estimates of total new
bond issuance for 1995 have continued to be lowered
with most estimates now in the $125 billion range.
Investors should find it increasingly difficult to replace
existing holdings as they mature and to reinvest cou-
pon income in such an environment.
The municipal bond market's outperformance thus far
this year caused the tax-exempt market to become
temporarily expensive relative to its taxable counter-
part in late April. Investor concerns regarding the
international currency situation and the future impact
of proposed revisions to US taxation policies upon the
tax advantage inherent to municipal bonds have com-
bined to cause tax-exempt bond yields to increase
marginally in recent weeks. Municipal bond yields
have risen approximately 15 basis points from their
lows in mid-April 1995. Long-term US Treasury bond
yields have remained essentially stable.
<PAGE>
Such an underperformance by the tax-exempt bond
market is likely to be limited in duration. The recent
increase in tax-exempt bond yields has already begun
to attract institutional investors since some munici-
pal bonds yielding in excess of 85% of US Treasury
bond yields are again available. Also, concerns regard-
ing the implication for municipal bonds' tax advantage
resulting from various proposed tax law changes (for
example, flat-tax, value-added tax or national sales
tax) are all likely to quickly recede as investors
realize that such, if any, changes are unlikely to be
enacted before late 1996 at the earliest. Long-term
investors will also recall 1986 when similar tax pro-
posals were made and tax-exempt bond yields ini-
tially rose and then quickly fell. Investors are likely
to view the current situation as an opportunity to
purchase very attractively priced tax-advantaged
products. This should cause municipal bond yields
to quickly return to their more historic relationship.
Portfolio Strategy
During the six months ended April 30, 1995, with the
continued decline of interest rates, we shifted the
Fund's portfolio strategy from a neutral posture on
interest rates to one that is more constructive. We
achieved this by extending the duration of the Fund
in order to seek to enhance any market appreciation.
New-issue volume in the Florida tax-exempt market
was just over $3.5 billion in bonds for the six-month
period ended April 30, 1995. This represents a decline
of approximately 35% versus the same period in 1994.
With the decline of new issuance in Florida and with
no significant increase on the horizon, we kept the
Fund's cash reserve position at approximately 1% of
net assets. Looking forward, our portfolio strategy
will continue to be to seek to enhance the total return
of the Fund as yields continue to decline.
Florida tax-exempt short-term interest rates traded in
the 3.50%--4.50% range throughout the six-month period
ended April 30, 1995. While short-term interest rates
rose significantly over the past year, it is important to
note that the municipal yield curve has remained
steeply positive. This has produced a material yield
advantage to the Common Shareholder. However,
should the yield spread between short-term and long-
term interest rates narrow, the benefits of the
leverage will decline and, as a result, reduce the yield
of the Common Shares. (For a complete explanation
of the benefits and risks of leveraging, see the
information provided below.)
<PAGE>
In Conclusion
We appreciate your ongoing interest in MuniYield
Florida Fund, and we look forward to serving your
investment needs in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 26, 1995
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 dividends at pre-
vailing short-term interest rates, and invests the
proceeds in long-term municipal bonds. The interest
earned on these investments is paid to Common Share-
holders 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 con-
ditions change, then the risks of leveraging will begin to
outweigh the benefits.
To illustrate these concepts, assume a fund's Common
Share capitalization 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. Of course, increases in short-
term interest rates would reduce (and even eliminate)
the dividends on the Common Shares.
<PAGE>
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 or eliminated com-
pletely. At the same time, the market value on the fund's
Common Shares (that is, its price as listed on the New
York Stock Exchange) may, as a result, decline. Further-
more, 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 does not fluctuate. In
addition to the decline in net asset value, the market
value of the fund's Common Shares may also decline.
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 Agency
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
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida--97.3%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Brevard County, Florida, IDR (Nui Corporation Project), AMT, 6.40% due 10/01/2024 (b) $ 2,031
AAA Aaa 4,000 Brevard County, Florida, Utility Revenue Refunding Bonds, 5.25% due 3/01/2014 (b) 3,672
Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River):
A+ A1 13,700 Series A, 6.625% due 1/01/2027 14,085
A+ A1 3,000 Series B, 6.35% due 2/01/2022 3,029
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) 5,141
A Aa 2,000 Refunding, Series Y, 5.50% due 10/01/2011 1,943
AAA Aaa 2,500 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due 10/01/2026 (b) 2,587
NR* Aaa 2,000 Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series A,
7.40% due 10/01/2023 (f) 2,092
Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT (f):
AAA Aaa 2,805 Refunding, 7% due 4/01/2028 (e) 2,891
NR* Aaa 2,500 Series A, 6.90% due 4/01/2020 2,558
BBB Baa1 2,000 Escambia County, Florida, PCR (Champion International Corporation Project), AMT,
6.90% due 8/01/2022 2,036
NR* Aaa 1,925 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022 (f) 2,051
AAA Aaa 2,500 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 5.25% due
9/01/2021 (b) 2,226
Florida State Board of Education, Capital Outlay Public Education Revenue Bonds:
AA Aa 11,800 Series A, 6.75% due 6/01/2021 12,429
AA Aa 4,500 Series B, 6.70% due 6/01/2022 4,700
Florida State Division, Board of Finance, Department of General Services Revenue Bonds
(Department of Natural Resource Preservation), Series 2000-A (b):
AAA Aaa 2,000 6.75% due 7/01/2007 2,158
AAA Aaa 4,500 6.75% due 7/01/2013 4,772
AAA Aaa 2,000 Florida State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A,
5% due 7/01/2016 (d) 1,753
<PAGE>
AAA Aaa 2,500 Fort Pierce, Florida, Utilities Authority, Revenue Refunding Bonds,
5.25% due 10/01/2016 (b) 2,270
Gainesville, Florida, Utilities Systems Revenue Bonds:
AA Aa 5,000 Series A, 6.50% due 10/01/2022 5,170
AA Aa 1,600 Series B, 6.50% due 10/01/2010 1,710
AAA Aaa 4,000 Greater Orlando Aviation Authority, Florida, Revenue Bonds (Orlando Airport Facilities),
AMT, Series A, 6.50% due 10/01/2012 (d) 4,154
</TABLE>
<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>
A A $ 6,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2022 $ 6,236
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegheny Health Systems--
J. Knox Village), 6.375% due 12/01/2012 (c) 1,031
Hillsborough County, Florida, Utilities Revenue Refunding Bonds:
BBB+ Baa1 1,245 Series A, 7% due 8/01/2014 1,302
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (g) 2,077
Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds (Saint John's
River), Issue 2:
AA Aa1 4,000 Series 9, 5.25% due 10/01/2021 3,518
AA Aa1 4,150 Series 10, 5.50% due 10/01/2013 3,894
AAA Aaa 3,250 Jacksonville, Florida, Excise Tax Revenue Bonds, Series A, 6.50% due 10/01/2016 (b) 3,363
AAA Aaa 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT, Series A, 6.50% due
10/01/2013 (c) 4,144
AAA Aaa 5,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series B,
6.50% due 10/01/2019 (b) 5,181
AAA Aaa 6,000 Orlando and Orange County, Florida Expressway Authority, Expressway Revenue
Refunding Bonds (Senior Lien), 5.25% due 7/01/2014 (b) 5,491
Orlando, Florida, Utilities Commission Water and Electric Revenue Bonds:
AA- Aa 6,000 Refunding, Sub-Series D, 6.75% due 10/01/2017 6,582
AA- Aa 6,000 Series B, 5.25% due 10/01/2023 5,257
<PAGE>
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds,
7.20% due 6/01/2015 (d) 1,737
NR* Aaa 3,000 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series A,
6.80% due 10/01/2027 (e) (f) 3,045
NR* VMIG1++ 1,700 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 5.15% due
10/01/2011 (a) 1,700
A1 VMIG1++ 400 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 5% due 12/01/2015 (a) 400
AAA Aaa 6,635 Reedy Creek, Florida, Improvement District, Utilities Revenue Refunding Bonds,
Series 1, 5% due 10/01/2019 (c) 5,706
AAA Aaa 4,495 Saint Lucie County, Florida, Sales Tax Revenue Refunding Bonds, 5% due 10/01/2019 (d) 3,866
Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds
(Allegheny Health System) (c):
AAA Aaa 1,550 (Saint Anthony's), 6.75% due 12/01/2021 1,629
AAA Aaa 2,000 Series A, 7% due 12/01/2015 2,150
A+ A1 4,500 South Broward, Florida, Hospital District Revenue Refunding Bonds, 5.50% due 5/01/2028 3,946
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegheny Health System--Saint Joseph),
6.75% due 12/01/2017 (c) 3,174
AAA Aaa 1,500 Vero Beach, Florida, Electric Revenue Refunding Bonds, Series A, 5.375% due
12/01/2021 (c) 1,358
Total Investments (Cost--$159,380)--97.3% 163,277
Other Assets Less Liabilities--2.7% 4,520
--------
Net Assets--100.0% $167,797
========
<FN>
(a)The interest rate is subject to change periodically based
upon the prevailing market rates. The interest rate shown
is the rate in effect at April 30, 1995.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)FSA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$159,380,120) (Note 1a) $163,277,349
Cash 38,890
Receivables:
Securities sold $ 3,875,038
Interest 2,194,529 6,069,567
------------
Deferred organization expenses (Note 1e) 18,594
Prepaid expenses and other assets 73,725
------------
Total assets 169,478,125
------------
Liabilities: Payables:
Securities purchased 1,432,284
Dividends to shareholders (Note 1f) 124,389
Investment adviser (Note 2) 65,385 1,622,058
------------
Accrued expenses and other liabilities 58,905
------------
Total liabilities 1,680,963
------------
Net Assets: Net assets $167,797,162
============
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized) (Note 4):
Preferred Shares, par value $.10 per share (2,200 shares of AMPS* issued
and outstanding at $25,000 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 109,597,864
Undistributed investment income--net 1,028,089
Accumulated realized capital losses on investments--net (Note 5) (2,511,898)
Unrealized appreciation on investments--net 3,897,229
------------
Total--Equivalent to $14.35 net asset value per Common Share
(market price--$13.375) 112,797,162
------------
Total capital $167,797,162
============
<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, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,084,890
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 404,974
Commission fees (Note 4) 73,871
Professional fees 37,788
Accounting services (Note 2) 25,207
Transfer agent fees 18,574
Printing and shareholder reports 15,951
Trustees' fees and expenses 10,876
Listing fees 7,869
Custodian fees 7,144
Amortization of organization expenses (Note 1e) 3,775
Pricing fees 3,071
Other 9,127
------------
Total expenses 618,227
------------
Investment income--net 4,466,663
------------
Realized & Realized loss on investments--net (1,967,973)
Unrealized Change in unrealized appreciation/depreciation on investments--net 6,204,705
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 8,703,395
(Notes 1b, ============
1d & 3):
</TABLE>
<PAGE>
<TABLE>
Statments of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 4,466,663 $ 9,040,474
Realized loss on investments--net (1,967,973) (543,924)
Change in unrealized appreciation/depreciation on investments--net 6,204,705 (18,814,168)
------------ ------------
Net increase (decrease) in net assets resulting from operations 8,703,395 (10,317,618)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,570,509) (7,419,538)
Shareholders Preferred Shares (926,860) (1,206,557)
(Note 1f): Realized gain on investments--net:
Common Shares -- (3,373,293)
Preferred Shares -- (645,359)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (4,497,369) (12,644,747)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment of
Transactions dividends and distributions -- 1,278,280
(Note 4): ------------ ------------
Net increase in net assets derived from capital share transactions -- 1,278,280
------------ ------------
Net Assets: Total increase (decrease) in net assets 4,206,026 (21,684,085)
Beginning of period 163,591,136 185,275,221
------------ ------------
End of period* $167,797,162 $163,591,136
============ ============
<FN>
*Undistributed investment income--net $ 1,028,089 $ 1,058,795
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
For the Period
The following per share data and ratios have been derived Six Months Feb. 28,
from information provided in the financial statements. Ended For the Year Ended 1992++ to
April 30, October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.82 $ 16.74 $ 14.13 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .57 1.15 1.17 .77
Realized and unrealized gain (loss) on investments--net .53 (2.46) 2.66 .05
-------- -------- -------- --------
Total from investment operations 1.10 (1.31) 3.83 .82
-------- -------- -------- --------
Less dividends and distributions to Common Shareholders:
Investment income--net (.45) (.95) (.97) (.55)
Realized gain on investments--net -- (.43) (.04) --
-------- -------- -------- --------
Total dividends and distributions to Common Shareholders (.45) (1.38) (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 (.12) (.15) (.20) (.14)
Realized gain on investments--net -- (.08) (.01) --
Capital charge resulting from issuance of Preferred
Shares -- -- -- (.15)
-------- -------- -------- --------
Total effect of Preferred Share activity (.12) (.23) (.21) (.29)
-------- -------- -------- --------
Net asset value, end of period $ 14.35 $ 13.82 $ 16.74 $ 14.13
======== ======== ======== ========
Market price per share, end of period $ 13.375 $ 11.375 $ 16.625 $ 14.75
======== ======== ======== ========
Total Investment Based on market price per share 21.72%+++ (24.94%) 20.13% 2.05%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 7.49%+++ (9.43%) 26.27% 3.41%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .76%* .76% .78% .58%*
Net Assets:*** ======== ======== ======== ========
Expenses .76%* .76% .78% .76%*
======== ======== ======== ========
Investment income--net 5.52%* 5.15% 5.16% 5.59%*
======== ======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $112,797 $108,591 $130,275 $108,541
======== ======== ======== ========
Preferred Shares outstanding, end of period (in thousands) $ 55,000 $ 55,000 $ 55,000 $ 55,000
======== ======== ======== ========
Portfolio turnover 43.49% 18.31% 32.84% 16.18%
======== ======== ======== ========
Dividends Per Investment income--net $ 421 $ 549 $ 719 $ 467
Share 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, may 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.
++++++Dividends per share have been adjusted to reflect a two-for-one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Fund (the "Fund") is registered
under the Investment Company Act of 1940 as a non-
diversified, closed-end management investment
company. These unaudited financial statements reflect
all adjustments which are, in the opinion of manage-
ment, 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 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 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,
which are traded on exchanges, are valued at their last
sale price as of the close of such exchanges or, lacking
any sales, at the last available bid price. Securities
with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily
available are valued at their fair value as determined
in good faith by or under the direction of the Board
of Trustees of the Fund.
(b) Derivative financial instruments--The Fund may
engage in various portfolio strategies to seek to increase
its return by hedging its portfolio against adverse
movements in the debt markets. Losses may arise due
to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase
or sell interest rate futures contracts and options on
such futures contracts for the purpose of hedging the
market risk on existing securities or the intended
purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future
date and at a specific price or yield. Upon entering
into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the ex-
change on which the transaction is effected. Pursuant
to the contract, the Fund agrees to receive from or
pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records
a realized gain or loss equal to the difference between
the value of the contract at the time it was opened
and the value at the time it was closed.
<PAGE>
* Options--The Fund is authorized to write covered
call options and purchase put options. When the Fund
writes an option, an amount equal to the premium
received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current
market value of the option written.
When a security is purchased or sold through an
exercise of an option, the related premium paid (or
received) is added to (or deducted from) the basis of
the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction),
the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or
loss to the extent the cost of the closing transaction
exceeds the premium paid or received).
Written and purchased options are non-income
producing investments.
(c) Income taxes--It is the Fund's policy to comply
with the requirements of the Internal Revenue Code
applicable to regulated investment companies and
to distribute substantially all of its taxable income to
its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--
Security transactions are recorded on the dates the
transactions are entered into (the trade dates). Interest
income is recognized on the accrual basis. Discounts
and market premiums are amortized into interest
income. Realized gains and losses on security trans-
actions are determined on the identified cost basis.
(e) Deferred organization expenses--Deferred organization
expenses are amortized on a straight-line basis over
a five-year period.
(f) Dividends and distributions--Dividends from net
investment income are declared and paid monthly.
Distributions of capital gains are recorded on the
ex-dividend dates.
NOTES TO FINANCIAL STATEMENTS (concluded)
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.
<PAGE>
FAM is responsible for the management of the Fund's
portfolio and provides the necessary personnel, facil-
ities, equipment and certain other services necessary
to the operations of the Fund. For such services, the
Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM
at cost.
Certain officers and/or trustees of the Fund are
officers and/or directors of FAM, PSI, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), and/or
ML & Co.
3. Investments:
Purchases and sales of investments, excluding
short-term securities, for the six months ended April 30,
1995 were $68,442,099 and $70,847,301, respectively.
Net realized and unrealized gains (losses) as of
April 30, 1995 were as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (115,063) $3,897,229
Financial futures contracts (1,852,910) --
----------- ----------
Total $(1,967,973) $3,897,229
=========== ==========
As of April 30, 1995, unrealized appreciation for
Federal income tax purposes aggregated $3,897,229,
of which $4,819,776 related to appreciated securities
and $922,547 related to depreciated securities. The
aggregate cost of investments at April 30, 1995 for
Federal income tax purposes was $159,380,120.
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.
<PAGE>
Common Shares
For the six months ended April 30, 1995, shares
outstanding remained constant at 7,858,776. At
April 30, 1995, total paid-in capital amounted to
$110,383,742.
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, 1995 was 4.50%.
A two-for-one stock split occurred on December 1,
1994. As a result, at April 30, 1995, there were
2,200 AMPS shares authorized, issued and outstanding
with a liquidation preference of $25,000 per share,
plus accumulated and unpaid dividends of $13,565.
The Fund pays commissions to certain broker-dealers at
the end of each auction at an annual rate ranging from
0.25% to 0.375%, calculated on the proceeds of each
auction. For the six months ended April 30, 1995, MLPF&S,
an affiliate of FAM, earned $27,752 as commissions.
5. Capital Loss Carryforward:
On October 31, 1994, the Fund had a capital loss carry-
forward of approximately $544,000, all of which
expires in 2002. This amount will be available to
offset like amounts of any future taxable gains.
6. Subsequent Event:
On May 9, 1995, the Fund's Board of Trustees declared an
ordinary income dividend to holders of Common Shares
in the amount of $0.071144 per share, payable on May
30, 1995 to shareholders of record as of May 19, 1995.
<PAGE>
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
May 1, 1993 to July 31, 1993 $.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
May 1, 1994 to July 31, 1994 .28 (.05) .26 .24 .05 -- --
August 1, 1994 to October 31, 1994 .29 (.08) (.90) .23 .05 -- --
November 1, 1994 to January 31, 1995 .29 (.43) .81 .23 .06 -- --
February 1, 1995 to April 30, 1995 .28 .17 (.02) .22 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1993 to July 31, 1993 $16.30 $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 16.71 16.09 17.00 15.25 547
February 1, 1994 to April 30, 1994 16.49 14.15 16.25 13.75 998
May 1, 1994 to July 31, 1994 15.21 14.26 14.375 13.50 572
August 1, 1994 to October 31, 1994 14.81 13.82 13.875 11.375 1,077
November 1, 1994 to January 31, 1995 14.21 12.76 13.50 10.50 1,688
February 1, 1995 to April 30, 1995 14.77 14.23 13.875 13.25 518
<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>
OFFICERS AND TRUSTEES
Arthur Zeikel, President and 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
90 Washington Street
New York, New York 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MYF
