MUNIYIELD
FLORIDA
INSURED FUND
FUND LOGO
Semi-Annual Report
April 30, 1996
Officers and Trustees
Arthur Zeikel, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
<PAGE>
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MFT
This report, including the financial information herein, is
transmitted to the shareholders of MuniYield Florida Insured 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 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 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 Shareholders. Statements and other information herein are as
dated and are subject to change.
MuniYield Florida
Insured Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Insured Fund
TO OUR SHAREHOLDERS
<PAGE>
For the six-month period ended April 30, 1996, the Common Shares of
MuniYield Florida Insured Fund earned $0.428 per share income
dividends, which included earned and unpaid dividends of $0.070.
This represents a net annualized yield of 5.82%, based on a month-
end per share net asset value of $14.76. Over the same period, the
total investment return on the Fund's Common Shares was +0.77%,
based on a change in per share net asset value from $15.16 to
$14.76, and assuming reinvestment of $0.431 per share income
dividends and $0.065 per share capital gains distributions.
For the six-month period ended April 30, 1996, the Fund's Auction
Market Preferred Shares had an average yield of 3.75%.
The Environment
Investor perceptions regarding the US economy changed over the
course of the six-month period ended April 30, 1996. As 1995 drew to
a close and 1996 began, it appeared that the US economy was losing
momentum. Lackluster retail sales, increases in initial unemployment
claims (along with weak job and income growth), and evidence of
slowing in the manufacturing sector all suggested that the rate of
economic growth was decelerating, with some forecasters even
suggesting the possibility of an imminent recession.
However, the consensus outlook for the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result,
investors began to anticipate renewed economic growth. Long-term
interest rates rose, and the Federal Reserve Board left monetary
policy on hold. Adding to investor concerns was the report that the
Knight Ridder-Commodity Research Bureau Index was near an eight-year
high, largely because of an increase in agricultural prices and an
upward spike in the price of crude oil.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the capital spending, housing and consumption
sectors are still relatively weak, which suggest that the economy is
not on the verge of overheating. Nevertheless, it is unlikely that
further indications of stronger economic activity in the weeks ahead
may add to investor concerns that accelerating economic activity
could lead to higher inflation and interest rates.
<PAGE>
The Municipal Market
During the six months ended April 30, 1996, tax-exempt bond yields
rose as investors became increasingly concerned that recent economic
growth would reignite inflationary pressures. Through early February
1996, municipal bond yields continued their earlier declines
supported by continued moderate economic growth and favorable
inflationary expectations. As measured by the Bond Buyer Revenue
Bond Index, yields on uninsured, A-rated municipal revenue bonds
declined an additional 30 basis points (0.30%) to 5.70% by early
February. As signs of emerging economic growth became more numerous,
particularly with the release of the strong March employment
figures, inflation fears increased and bond yields rose in response
for the remainder of the six-month period ended April 30, 1996. At
April 30, 1996, long-term municipal bond yields were approximately
6.30%, an increase of approximately 30 basis points over the last
six months. The rise in US Treasury bond yields was more
substantial. Over the last six months, yields on US Treasury
securities rose approximately 60 basis points to 6.90%. During the
April period, the municipal bond market reversed the trend seen
throughout much of 1995 and significantly outperformed the US
Treasury bond market.
The municipal bond market's recent outperformance was largely the
result of two principal factors. First, and perhaps more important,
much of the earlier concern regarding proposed changes in Federal
income tax codes and their effect on the tax treatment of tax-exempt
bond income has dissipated. As the negative revenue impact of the
various proposals, such as the flat tax, became apparent, the
likelihood of immediate reform quickly diminished. When the Kemp
Commission dealing with Federal income tax reform released its
findings early in 1996, the obvious need for reform was highlighted.
However, no specific recommendations of a flat tax, value-added tax
or any other reform were made. Consequently, fears of losing the
favored tax treatment of municipal bond income declined even
further. As a percentage of Treasury bond yields, tax-exempt bond
yield ratios quickly declined from 95% to approximately 90%. This
allowed the municipal bond market to maintain much of the gains made
since early 1995.
The second major factor leading to the municipal bond market's
recent improvement was the return of a more favorable technical
environment. Over the past six months, approximately $90 billion in
municipal securities were underwritten, an increase of approximately
45% versus the comparable period a year earlier. However, much of
this increase was biased by recent underwritings dedicated toward
refinancing. Like individual homeowners, municipal issuers sought to
refinance their existing higher-couponed debt as tax-exempt bond
yields declined from their highs in 1995. In recent months such
refinancings were estimated to represent at least 50% of total
issuance. However, the recent rise in tax-exempt interest rates
slowed the pace of such refinancings. Over the last three months
approximately $40 billion in long-term tax-exempt securities were
underwritten, an increase of 35% compared to the same period a year
ago. At current interest rate levels large amounts of refundings are
unlikely and the rate of new bond issuance should continue to
decline.
<PAGE>
Additionally, investors continue to receive significant amounts of
assets derived from coupon income, bond maturities, and proceeds
from early redemptions. In recent months investors received over $30
billion in such assets. These cash flows helped maintain individual
retail investor demand in recent months. Additionally, major
institutional investors, such as certain insurance companies whose
underwriting profits were cyclically high, demonstrated significant
ongoing interest in the tax-exempt bond market, particularly on
higher-quality securities. Individual and institutional investor
demand was strong enough during the six-month period ended April 30,
1996 to absorb the relative increase in bond issuance.
Looking ahead, we believe the municipal bond market is likely to
continue to outperform the US Treasury market. Investor demand
should remain adequate to absorb new bond issuance. It is also
unlikely that the rapid pace of issuance seen thus far in 1996 will
be maintained. The recent rise in yields made further bond
refinancings economically unfeasible. Since these refinancings were
the driving force of recent bond issuance, as the amount of these
refundings decline, overall issuance should decline. This should
allow the current demand/supply balance to be easily maintained in
upcoming months.
Additionally, as a percentage of US Treasury bond yields, long-term
municipal bond yields remain historically attractive. It is likely
that recent interest rate increases will have a negative impact on
economic growth, perhaps as early as late summer 1996. With long-
term mortgage rates above 8%, the domestic housing sector has
already indicated signs of slower growth. If other interest rate
sectors of the economy, such as the automobile industry, begin to
show similar adverse effects, taxable interest rates would be poised
to resume their decline. With long-term tax-exempt revenue bonds
yielding approximately 90% of their taxable counterparts, municipal
bond yields are poised to decline further.
Portfolio Strategy
Our investment strategy shifted dramatically during the six months
ended April 30, 1996. We started the period optimistic on the
interest rate outlook based on slow economic growth and low
inflation. This outlook proved correct as the bond market rallied
into January 1996. Unfortunately, we remained constructive during
February and early March when interest rates began to rise. We then
reversed the Fund's course and became extremely defensive,
protecting the Fund from the significant back up in interest rates
that brought the 30-year US Treasury bond to 6.90% by the end of
March. At this time we began buying, believing that the market had
oversold, only to have the market continue its decline.
At this time, we are cautiously optimistic on the interest rate
outlook. There is a considerable amount of bad news priced into the
market, and any surprises, such as a slower economy or slower
employment increases, could rally the market substantially. We will
maintain the Fund's neutral position until such signs develop.
<PAGE>
The interest rate on the Fund's Auction Market Preferred Shares
continued to benefit the Fund's Common Shareholders. While the
interest rate on the Preferred Shares increased, the Fund's Common
Shareholders continued to benefit from a positive yield spread. We
anticipate that the interest rate on Preferred Shares will come down
to the 3.50% range from its current 3.80%. However, should the
spread between short-term and long-term interest rates narrow, the
benefits of the leverage will diminish and, as a result, reduce the
yield of the Fund's Common Shares. (For a complete explanation of
the benefits and risks of leveraging, see page 4 of this report to
shareholders.)
In Conclusion
We appreciate your ongoing interest in MuniYield Florida Insured
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
Senior Vice President
(Robert A. DiMella)
Robert A. DiMella
Portfolio Manager
<PAGE>
May 30, 1996
We are pleased to announce that Robert A. DiMella is responsible for
the day-to-day management of MuniYield Florida Insured Fund. Mr.
DiMella has been employed by Merrill Lynch Asset Management, L.P.
(an affiliate of the Fund's investment adviser) since 1995 as
Assistant Vice President and was Assistant Portfolio Manager thereof
from 1993 to 1995. Prior thereto, he was Assistant Portfolio Manager
with Prudential Investment Advisors from 1992 to 1993, and was a
Research Assistant with Prudential Investment Corporation from 1989
to 1992.
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield Florida Insured 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 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
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 completely. 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 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 Insured 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)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest 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--102.9%
<S> <S> <C> <S> <C>
AAA Aaa $ 1,770 Atlantic Beach, Florida, Utilities System Revenue Bonds, 5.50% due 10/01/2025 (c) $ 1,674
<PAGE>
AAA Aaa 3,000 Boynton Beach, Florida, Utility System Revenue Refunding Bonds, 6.25% due
11/01/2020 (b) 3,094
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corp. Project), AMT, 6.40% due 10/01/2024 (a) 3,085
AAA Aaa 2,750 Charlotte County, Florida, Utility Revenue Refunding Bonds, 5.25% due
10/01/2021 (b) 2,513
AAA Aaa 2,000 Citrus County, Florida, Capital Improvement Revenue Bonds, 5% due 7/01/2016 (b)(i) 1,807
Citrus County, Florida, PCR, Refunding (Florida Power Corp.--Crystal River) (c):
AAA Aaa 2,100 Series A, 6.625% due 1/01/2027 2,222
AAA Aaa 6,500 Series B, 6.35% due 2/01/2022 6,753
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (c):
AAA Aaa 2,650 6.55% due 10/01/2013 2,777
AAA Aaa 8,750 6.60% due 10/01/2022 9,104
AAA Aaa 4,500 Dade County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Baptist Hospital of Miami Project), Series A, 5.75% due 5/01/2021 (c)(h) 4,466
A1+ VMIG1++ 11,000 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds (Florida
Power & Light Co.), VRDN, 4.10% due 6/01/2021 (e) 11,000
AAA Aaa 5,905 Dade County, Florida, School Board, COP, Series A, 5.50% due 5/01/2016 (a) 5,683
AAA Aaa 4,500 Dade County, Florida, School District, UT, 5.90% due 8/01/2001 (b)(d) 4,761
AAA Aaa 7,500 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due 10/01/2001 (a)(d) 8,220
AAA Aaa 5,000 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds (Multi-County
Program), AMT, 7% due 4/01/2028 (f)(g) 5,265
BBB Baa1 1,000 Escambia County, Florida, PCR (Champion International Corp. Project), AMT,
6.90% due 8/01/2022 1,045
NR* Aaa 1,860 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022 (g) 1,946
Florida HFA, Revenue Bonds, AMT (a):
AAA Aaa 1,150 (Brittany Rosemont Apartments), Series C1, 6.75% due 8/01/2014 1,212
AAA Aaa 1,225 (Brittany Rosemont Apartments), Series G1, 6.15% due 7/01/2025 1,223
AAA Aaa 1,350 (Brittany Rosemont Apartments), Series G1, 6.25% due 7/01/2035 1,348
AAA Aaa 1,000 (Holly Cove Apartments Project), Series F, 6.25% due 10/01/2035 998
Florida State Board of Education, Public Education Revenue Bonds (Capital Outlay),
Series A:
AAA Aa 2,000 6.75% due 6/01/2001(d) 2,207
AA Aa 3,000 Refunding, 7.25% due 6/01/2023 3,299
<PAGE>
AAA Aaa 1,790 Florida State Division, Board of Finance, Department of General Services Revenue
Bonds (Department of Natural Resource Preservation), Series 2000-A, 6.75% due
7/01/2013 (a) 1,914
AAA Aaa 6,500 Florida State Municipal Power Agency Revenue Bonds (Stanton II Project),
6.50% due 10/01/2002 (a)(d) 7,230
Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A:
AAA Aaa 5,000 (Department of Transportation), 5.50% due 7/01/2021 4,758
AAA Aaa 2,500 Refunding, 5% due 7/01/2019 (b) 2,215
AA Aa 4,800 Gainesville, Florida, Utilities System Revenue Bonds, Series B, 6.50% due
10/01/2013 5,237
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System-J. Knox
Village), 6.375% due 12/01/2012 (c) 1,040
AAA Aaa 2,860 Indian River County, Florida, Water and Sewer Revenue Refunding Bonds, Series A,
5.25% due 9/01/2020 (b) 2,625
A1+ VMIG1++ 400 Jacksonville, Florida, PCR, Refunding (Florida Power & Light Co. Project), VRDN,
4% due 5/01/2029 (e) 400
</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>
Lee County, Florida, Transportation Facilities, Revenue Bonds (c):
AAA Aaa $ 3,500 5.75% due 10/01/2022 $ 3,439
AAA Aaa 10,650 5.75% due 10/01/2027 10,452
A- A 5,000 Leesburg, Florida, Hospital Revenue Refunding Bonds (Leesburg Regional Medical
Center Project), Series A, 6.125% due 7/01/2012 4,984
AAA Aaa 1,000 Marion County, Florida, Hospital District, Revenue Refunding Bonds (Monroe
Regional Medical Center), 6.25% due 10/01/2012 (b) 1,040
AAA Aaa 2,515 North Miami Beach, Florida, UT, 6.30% due 2/01/2024 (b) 2,592
Orange County, Florida, Tourist Development Tax Revenue Bonds (a):
AAA Aaa 1,000 Refunding, Series A, 6.50% due 10/01/2010 1,071
AAA Aaa 7,815 Series B, 6.50% due 10/01/2019 8,233
<PAGE>
AAA Aaa 5,000 Orlando and Orange County, Florida, Expressway Authority Revenue Bonds (Junior
Lien), 6.50% due 7/01/2011 (b) 5,520
AA- Aa 2,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding
Bonds, Sub-Series D, 6.75% due 10/01/2017 2,250
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20%
due 6/01/2015 (b) 1,773
AAA Aaa 2,000 Palm Beach County, Florida, Solid Waste Authority, Revenue Refunding and
Improvement Bonds, 6.25% due 12/01/2008 (c) 2,148
NR* VMIG1++ 5,300 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 4.25% due
10/01/2011 (e) 5,300
A1 VMIG1++ 2,500 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 4.05% due 12/01/2015 (e) 2,500
AAA Aaa 3,000 Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Allegany Health System), Series A, 7% due 12/01/2015 (c) 3,281
AAA Aaa 4,920 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due 10/01/2004 (b)(d) 5,516
AAA Aaa 4,180 Sarasota--Manatee Airport Authority, Florida, Revenue Refunding Bonds, 5.375%
due 8/01/2012 (c) 4,057
Seminole County, Florida, School Board, COP, Refunding, Series A (c):
AAA Aaa 4,475 5.125% due 7/01/2015 4,104
AAA Aaa 4,630 5.25% due 7/01/2021 4,243
AAA Aaa 2,250 South Broward Hospital District, Florida, Hospital Revenue Bonds, RIB, Series C,
9.326% due 5/01/2001 (a)(d)(j) 2,683
AAA Aaa 2,275 South Florida, Water Management District, Special Obligation Land Acquisition
Bonds, 6% due 10/01/2015 (a) 2,280
Puerto Rico--4.2%
A Baa1 8,850 Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue Refunding Bonds,
5% due 7/01/2019 7,640
Total Investments (Cost--$191,073)--107.1% 196,227
Liabilitites in Excess of Other Assets--(7.1%) (13,011)
--------
Net Assets--100.0% $183,216
========
<PAGE>
<FN>
(a)AMBAC Insured.
(b)FGIC Insured.
(c)MBIA Insured.
(d)Prerefunded.
(e)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, 1996.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
(h)Escrowed to Maturity.
(i)Bank Qualified.
(j)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at April 30, 1996.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$191,072,577) (Note 1a) $196,226,631
Cash 2,746,887
Receivables:
Securities sold $ 2,610,263
Interest 2,307,284 4,917,547
------------
Deferred organization expenses (Note 1e) 15,748
Prepaid expenses and other assets 7,025
------------
Total assets 203,913,838
------------
Liabilities: Payables:
Securities purchased 20,458,878
Dividends to shareholders (Note 1f) 90,815
Investment adviser (Note 2) 80,379 20,630,072
------------
Accrued expenses and other liabilities 67,768
------------
Total liabilities 20,697,840
------------
Net Assets: Net assets $183,215,998
============
<PAGE>
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized) (Note 4):
Preferred Shares, par value $.10 per share (2,400 shares of AMPS*
issued and outstanding at $25,000 per share liquidation preference) $ 60,000,000
Common Shares, par value $.10 per share (8,350,463 shares issued
and outstanding) $ 835,046
Paid-in capital in excess of par 116,287,758
Undistributed investment income--net 890,986
Undistributed realized capital gains on investments--net 48,154
Unrealized appreciation on investments--net 5,154,054
------------
Total--Equivalent to $14.76 net asset value per Common Share
(market price--$14.625) 123,215,998
------------
Total capital $183,215,998
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1996
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,231,502
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 467,400
Commission fees (Note 4) 76,238
Professional fees 36,124
Accounting services (Note 2) 22,732
Printing and shareholder reports 21,845
Transfer agent fees 19,171
Trustees' fees and expenses 11,464
Listing fees 8,288
Custodian fees 6,744
Pricing fees 4,405
Amortization of organization expenses (Note 1e) 3,948
Other 5,690
------------
Total expenses 684,049
------------
Investment income--net 4,547,453
------------
<PAGE>
Realized & Realized gain on investments--net 1,774,623
Unrealized Change in unrealized appreciation on investments--net (4,403,658)
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 1,918,418
(Notes 1b, 1d & 3): ============
</TABLE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1996 Oct. 31, 1995
<S> <C> <C>
Operations: Investment income--net $ 4,547,453 $ 9,334,176
Realized gain on investments--net 1,774,623 315,997
Change in unrealized appreciation/depreciation on investments--net (4,403,658) 11,706,927
------------ ------------
Net increase in net assets resulting from operations 1,918,418 21,357,100
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,597,154) (7,021,495)
Shareholders Preferred Shares (953,400) (2,218,860)
(Note 1f): Realized gain on investments--net:
Common Shares (540,567) --
Preferred Shares (168,552) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (5,259,673) (9,240,355)
------------ ------------
Net Assets: Total increase (decrease) in net assets (3,341,255) 12,116,745
Beginning of period 186,557,253 174,440,508
------------ ------------
End of period* $183,215,998 $186,557,253
============ ============
<FN>
*Undistributed investment income--net $ 890,986 $ 894,087
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months Oct. 30,
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: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.16 $ 13.70 $ 16.56 $ 14.14 $ 14.18
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .54 1.12 1.13 1.12 --
Realized and unrealized gain (loss) on
investments--net (.32) 1.45 (2.70) 2.48 --
-------- -------- -------- -------- --------
Total from investment operations .22 2.57 (1.57) 3.60 --
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.43) (.84) (.91) (.85) --
Realized gain on investments--net (.06) -- (.15) -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.49) (.84) (1.06) (.85) --
-------- -------- -------- -------- --------
Capital charge resulting from issuance of
Common Shares -- -- -- -- (.04)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:++++
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.11) (.27) (.20) (.19) --
Realized gain on investments--net (.02) -- (.03) -- --
Capital charge resulting from issuance of
Preferred Shares -- -- -- (.14) --
-------- -------- -------- -------- --------
Total effect of Preferred Share activity (.13) (.27) (.23) (.33) --
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.76 $ 15.16 $ 13.70 $ 16.56 $ 14.14
======== ======== ======== ======== ========
Market price per share, end of period $ 14.625 $ 13.50 $ 11.375 $ 16.875 $ 15.00
======== ======== ======== ======== ========
Total Investment Based on market price per share 12.12%+++ 26.46% (27.46%) 18.78% .00%+++
Return:** ======== ======== ======== ======== ========
Based on net asset value per share .77%+++ 17.91% (10.98%) 23.65% (.28%)+++
======== ======== ======== ======== ========
<PAGE>
Ratios to Average Expenses, net of reimbursement .73%* .75% .75% .66% --
Net Assets:*** ======== ======== ======== ======== ========
Expenses .73%* .75% .75% .72% --
======== ======== ======== ======== ========
Investment income--net 4.85%* 5.18% 4.99% 5.09% --
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end of
Data: period (in thousands) $123,216 $126,557 $114,441 $137,908 $116,199
======== ======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000 --
======== ======== ======== ======== ========
Portfolio turnover 110.55% 107.90% 51.81% 18.51% .00%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,054 $ 3,109 $ 2,907 $ 3,298 --
======== ======== ======== ======== ========
Dividends Per Share Investment income--net $ 397 $ 925 $ 688 $ 662 --
On Preferred Shares ======== ======== ======== ======== ========
Outstanding:++++++
<FN>
+++Aggregate total investment return.
*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 November 19, 1992.
++++++Dividends per share have been adjusted to reflect a two-for-
one stock split that occurred on December 1, 1994.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Insured 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 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 Shares on a weekly basis. The Fund's
Common Shares are listed on the New York Stock Exchange under the
symbol MFT. 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, 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 general supervision
of the Board of Trustees.
(b) Derivative financial instruments -- The Fund may engage in
various portfolio strategies to seek to increase its return by
hedging its portfolio against adverse movements in the debt markets.
Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract.
* Financial futures contracts -- The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
<PAGE>
* Options -- The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income -- Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(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.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
<PAGE>
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, 1996 were $199,415,199 and
$198,139,612, respectively.
Net realized and unrealized gains as of April 30, 1996 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 671,385 $ 5,154,054
Financial futures contracts 1,103,238 --
----------- -----------
Total $ 1,774,623 $ 5,154,054
=========== ===========
As of April 30, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $5,154,054, of which $5,862,451 related to
appreciated securities and $708,397 related to depreciated
securities. The aggregate cost of investments at April 30, 1996 for
Federal income tax purposes was $191,072,577.
4. Capital Share Transactions:
The Fund is authorized to issue an unlimited number of capital
shares, 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 capital without approval of the holders of Common Shares.
Common Shares
For the six months ended April 30, 1996, shares issued and
outstanding remained constant at 8,350,463. At April 30, 1996, total
paid-in capital amounted to $117,122,804.
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, 1996 was 3.84%.
As of April 30, 1996, there were 2,400 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends of $109,824.
<PAGE>
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, 1996, MLPF&S, an affiliate of FAM, earned $41,547 as
commissions.
5. Subsequent Event:
On May 10, 1996, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $0.069816
per share, payable on May 30, 1996 to shareholders of record as of
May 21, 1996.
