MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1996
Officers and Trustees
Arthur Zeikel, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Robert A. DiMella, 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
MYF
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 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 Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Fund
TO OUR SHAREHOLDERS
<PAGE>
For the six-month period ended April 30, 1996, the Common Shares of
MuniYield Florida Fund earned $0.451 per share income dividends,
which included earned and unpaid dividends of $0.074. This
represents a net annualized yield of 6.14%, based on a month-end per
share net asset value of $14.73. Over the same period, the total
investment return on the Fund's Common Shares was +0.80%, based on a
change in per share net asset value from $15.07 to $14.73, and
assuming reinvestment of $0.451 per share income dividends.
For the six-month period ended April 30, 1996, the Fund's Auction
Market Preferred Shares had an average yield of 3.48%.
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 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
Vice President and Portfolio Manager
<PAGE>
May 31, 1996
We are pleased to announce that Robert A. DiMella is responsible for
the day-to-day management of MuniYield Florida Fund. Mr. DiMella has
been employed by Merrill Lynch Asset Management, L.P. (an affiliate
of the Fund's investment adviser) since 1995 as Portfolio Manager
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 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 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
GO General Obligation Bonds
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
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<PAGE>
Florida--105.6%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Brevard County, Florida, IDR (NUI Corp. Project), AMT, 6.40% due 10/01/2024 (b) $ 2,057
A+ A1 13,700 Citrus County, Florida, PCR, Refunding (Florida Power Corp.--Crystal River),
Series A, 6.625% due 1/01/2027 14,337
Dade County, Florida, Aviation Revenue Bonds, AMT (c):
AAA Aaa 4,655 Series A, 5.75% due 10/01/2018 4,540
AAA Aaa 1,000 Series B, 6.55% due 10/01/2013 1,048
AAA Aaa 5,000 Series B, 6.60% due 10/01/2022 5,202
AA- VMIG1++ 700 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds
(Florida Power & Light Co.), VRDN, 4.10% due 6/01/2021 (a) 700
AAA Aaa 5,000 Dade County, Florida, School Board, COP, Series A, 5.50% due 5/01/2016 (b) 4,812
AAA Aaa 7,500 Dade County, Florida, Seaport, GO, UT, 6.50% due 10/01/2001 (b)(h) 8,220
Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT (f):
NR* Aaa 2,020 (Multi-County Program), Series A, 6.90% due 4/01/2020 2,077
AAA Aaa 2,805 Refunding (Multi-County Program), 7% due 4/01/2028 (e) 2,954
NR* Aaa 2,000 Series A, 7.40% due 10/01/2023 2,083
BBB Baa1 2,000 Escambia County, Florida, PCR (Champion International Corp. Project),
AMT, 6.90% due 8/01/2022 2,089
NR* Aaa 1,815 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022 (f) 1,899
Florida State Board of Education, Public Education Revenue Bonds (Capital Outlay):
AAA Aa 11,800 Series A, 6.75% due 6/01/2001 (h) 13,021
AAA Aaa 4,500 Series B, 6.70% due 6/01/2001 (h) 4,955
AAA Aaa 2,000 UT, 1994 Series C, 5.60% due 6/01/2020 (c) 1,931
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 2,188
AAA Aaa 4,500 6.75% due 7/01/2013 4,811
NR* NR* 5,495 Florida State Mid-Bay Bridge Authority Revenue Bonds, Series A, 7.50% due
10/01/2017 5,951
Gainesville, Florida, Utilities System Revenue Bonds:
AA Aa 7,085 Refunding, Series A, 5.20% due 10/01/2022 6,408
AA Aa 5,000 Series A, 6.50% due 10/01/2002 (h) 5,547
AA Aa 1,600 Series B, 6.50% due 10/01/2010 1,761
AAA Aaa 4,000 Greater Orlando Aviation Authority Revenue Bonds (Orlando Airport Facilities),
AMT, Series A, 6.50% due 10/01/2012 (d) 4,176
A A 6,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2002 (h) 6,725
<PAGE>
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
Hillsborough County, Florida, Utility Revenue Refunding Bonds:
BBB+ Baa1 1,245 Series A, 7% due 8/01/2014 1,335
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (g) 2,095
AAA Aaa 3,250 Jacksonville, Florida, Excise Tax Revenue Bonds, Series A, 6.50% due 10/01/1999
(b)(h) 3,519
A1+ VMIG1++ 800 Jacksonville, Florida, PCR, Refunding (Florida Power & Light Co. Project), VRDN,
4% due 5/01/2029 (a) 800
</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>
AAA Aaa $ 6,000 Lakeland, Florida, Hospital System Revenue Bonds (Regional Medical Center),
Series A, 5.25% due 11/15/2025 (c) $ 5,396
AAA Aaa 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT, Series A,
6.50% due 10/01/2013 (c) 4,157
Lee County, Florida, Transportation Facilities Revenue Bonds (c):
AAA Aaa 3,500 5.75% due 10/01/2022 3,439
AAA Aaa 2,500 5.75% due 10/01/2027 2,454
AAA NR* 2,480 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Progarm),
AMT, Series B, 7.30% due 1/01/2028 (f) 2,652
AAA Aaa 5,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series B,
6.50% due 10/01/2019 (b) 5,268
Orlando, Florida, Utilities Commission Water and Electric Revenue Bonds:
AA Aa1 2,000 5% due 10/01/2023 1,728
AA- Aa 6,000 Refunding, Sub-Series D, 6.75% due 10/01/2017 6,749
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds,
7.20% due 6/01/2015 (d) 1,773
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) 3,037
<PAGE>
NR* VMIG1++ 2,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 4.25%
due 10/01/2011 (a) 2,000
A1 VMIG1++ 300 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 4.05% due 12/01/2015 (a) 300
A1+ VMIG1++ 10,000 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Light Co. Project),
VRDN, 4.10% due 1/01/2026 (a) 10,000
Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Allegany Health System) (c):
AAA Aaa 1,550 (Saint Anthony's), 6.75% due 12/01/2021 1,650
AAA Aaa 2,000 Series A, 7% due 12/01/2015 2,187
AAA Aaa 1,990 Sarasota County, Florida, Solid Waste System Revenue Bonds, 5.50% due 10/01/2021 (b) 1,873
AAA Aaa 4,410 Sarasota--Manatee Airport Authority, Florida, Revenue Refunding Bonds,
5.375% due 8/01/2013 (c) 4,249
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegany Health System--Saint Joseph),
6.75% due 12/01/2017 (c) 3,201
Total Investments (Cost--$172,562)--105.6% 180,394
Liabilities in Excess of Other Assets--(5.6%) (9,621)
--------
Net Assets--100.0% $170,773
========
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1996.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)FSA Insured.
(h)Prerefunded.
*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, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$172,562,322) (Note 1a) $180,393,820
Cash 943,197
Receivables:
Interest $ 2,163,803
Securities sold 235,042 2,398,845
------------
Deferred organization expenses (Note 1e) 10,591
Prepaid expenses and other assets 12,214
------------
Total assets 183,758,667
------------
Liabilities: Payables:
Securities purchased 12,704,542
Dividends to shareholders (Note 1f) 156,263
Investment adviser (Note 2) 74,954 12,935,759
------------
Accrued expenses and other liabilities 50,251
------------
Total liabilities 12,986,010
------------
Net Assets: Net assets $170,772,657
============
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 109,591,963
Undistributed investment income--net 1,003,120
Accumulated realized capital losses on investments--net (Note 5) (3,439,802)
Unrealized appreciation on investments--net 7,831,498
------------
Total--Equivalent to $14.73 net asset value per Common
Share (market price--$14.50) 115,772,657
------------
Total capital $170,772,657
============
<FN>
*Auction Market Preferred Shares.
<PAGE>
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 $ 5,062,315
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 434,730
Commission fees (Note 4) 68,484
Professional fees 38,987
Transfer agent fees 19,246
Printing and shareholder reports 18,011
Accounting services (Note 2) 16,982
Trustees' fees and expenses 11,527
Listing fees 9,551
Custodian fees 7,184
Amortization of organization expenses (Note 1e) 3,994
Pricing fees 3,252
Other 8,625
------------
Total expenses 640,573
------------
Investment income--net 4,421,742
------------
Realized & Realized loss on investments--net (88,596)
Unrealized Loss on Change in unrealized appreciation on investments--net (2,466,841)
Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 1,866,305
============
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 4,421,742 $ 8,937,095
Realized loss on investments--net (88,596) (2,807,282)
Change in unrealized appreciation/depreciation on investments--net (2,466,841) 12,605,816
------------ ------------
Net increase in net assets resulting from operations 1,866,305 18,735,629
------------ ------------
Dividends to Investment income--net:
Shareholders Common Shares (3,541,801) (6,885,600)
(Note 1f): Preferred Shares (954,272) (2,038,740)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (4,496,073) (8,924,340)
------------ ------------
Net Assets: Total increase (decrease) in net assets (2,629,768) 9,811,289
Beginning of period 173,402,425 163,591,136
------------ ------------
End of period* $170,772,657 $173,402,425
============ ============
<FN>
*Undistributed investment income--net $ 1,003,120 $ 1,077,451
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the For the
The following per share data and ratios have been derived Six Months Period
from information provided in the financial statements. Ended For the Feb. 28, 1992++
April 30, Year Ended October 31, to 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 $ 15.07 $ 13.82 $ 16.74 $ 14.13 $ 14.18
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .56 1.14 1.15 1.17 .77
Realized and unrealized gain (loss)
on investments--net (.33) 1.25 (2.46) 2.66 .05
-------- -------- -------- -------- --------
Total from investment operations .23 2.39 (1.31) 3.83 .82
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.45) (.88) (.95) (.97) (.55)
Realized gain on investments--net -- -- (.43) (.04) --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.45) (.88) (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) (.26) (.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) (.26) (.23) (.21) (.29)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.73 $ 15.07 $ 13.82 $ 16.74 $ 14.13
======== ======== ======== ======== ========
Market price per share, end of period $ 14.50 $ 13.375 $ 11.375 $ 16.625 $ 14.75
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 11.81%+++ 25.63% (24.94%) 20.13% 2.05%+++
Return:** ======== ======== ======== ======== ========
Based on net asset value per share .80%+++ 16.50% (9.43%) 26.27% 3.41%+++
======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .73%* .77% .76% .78% .58%*
Net Assets:*** ======== ======== ======== ======== ========
Expenses .73%* .77% .76% .78% .76%*
======== ======== ======== ======== ========
Investment income--net 5.07%* 5.32% 5.15% 5.16% 5.59%*
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end
Data: of period (in thousands) $115,773 $118,402 $108,591 $130,275 $108,541
======== ======== ======== ======== ========
Preferred Shares outstanding, end
of period (in thousands) $ 55,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000
======== ======== ======== ======== ========
Portfolio turnover 54.40% 97.93% 18.31% 32.84% 16.18%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,105 $ 3,153 $ 2,974 $ 3,369 $ 2,973
======== ======== ======== ======== ========
Dividends Per Share Investment income--net $ 434 $ 927 $ 549 $ 719 $ 467
On Preferred Shares ======== ======== ======== ======== ========
Outstanding:++++++
<PAGE>
<FN>
++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 that occurred on December 1, 1994.
+++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.
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 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 MYF. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent
bid price or yield equivalent as obtained by the Fund's pricing
service from dealers that make markets in such securities. Financial
futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, 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 the general
supervision of the Board of Trustees.
<PAGE>
(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.
* 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.
<PAGE>
(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.
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 $91,821,889 and
$93,579,164, respectively.
Net realized and unrealized gains (losses) as of April 30, 1996 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (32,790) $ 7,831,498
Financial futures contracts (55,806) --
----------- -----------
Total $ (88,596) $ 7,831,498
=========== ===========
<PAGE>
As of April 30, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $7,831,498, of which $8,192,921 related to
appreciated securities and $361,423 related to depreciated
securities. The aggregate cost of investments at April 30, 1996 for
Federal income tax purposes was $172,562,322.
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, 1996, shares outstanding remained
constant at 7,858,776. At April 30, 1996, total paid-in capital
amounted to $110,377,841.
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 3.95%.
As of April 30, 1996, there were 2,200 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 1996, MLPF&S, an affiliate of FAM, earned $42,744 as
commissions.
<PAGE>
5. Capital Loss Carryforward:
On October 31, 1995, the Fund had a net capital loss carryforward of
approximately $2,016,000, of which $544,000 expires in 2002 and
$1,472,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
6. Subsequent Event:
On May 10, 1996, the Fund's Board of Trustees declared an ordinary
income dividend to holders of Common Shares in the amount of
$0.073898 per share, payable on May 30, 1996 to shareholders of
record as of May 21, 1996.
