MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1997
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
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
TO OUR SHAREHOLDERS
<PAGE>
For the six-month period ended April 30, 1997, the Common Shares of
MuniYield Florida Fund earned $0.447 per share income dividends,
which included earned and unpaid dividends of $0.072. This
represents a net annualized yield of 6.04%, based on a month-end per
share net asset value of $14.93. Over the same period, the total
investment return on the Fund's Common Shares was +1.34%, based on a
change in per share net asset value from $15.23 to $14.93, and
assuming reinvestment of $0.451 per share income dividends and
$0.043 per share capital gains distributions.
The average yield of the Fund's Auction Market Preferred Shares for
the six-month period ended April 30, 1997 was 3.36%.
The Municipal Market Environment
Long-term tax-exempt revenue bonds traded in a relatively narrow
range throughout much of the six months ended April 30, 1997. By mid-
January 1997, municipal bond yields had risen to over 6% as
investors reacted negatively to reports of progressively stronger
domestic economic growth. However, a continued lack of any material
inflationary pressures allowed bond yields to decline to their prior
levels by late February. Bond yields rose again as investors became
increasingly concerned that the US domestic economic strength seen
thus far in 1997 would continue and that the increase in short-term
interest rates administered by the Federal Reserve Board (FRB) in
late March would be the first in a series of such moves designed to
slow the US economy before any dormant inflationary pressures were
awakened. Long-term tax-exempt bond yields rose approximately 15
basis points (0.15%) to almost 6.15% by mid-April. Similarly, long-
term US Treasury bond yields rose over 35 basis points over the same
period to 7.16%. However, in late April economic indicators were
released showing that despite considerable economic growth, any
inflationary pressures, particularly those associated with wage
increases, were well-contained and of no immediate concern. Fixed-
income bond prices staged a significant rally during the last week
of April with long-term US Treasury bond yields falling nearly 20
basis points to end the month at 6.95%. Municipal bond yields, as
measured by the Bond Buyer Revenue Bond Index, declined nearly 15
basis points to stand at 6.01% by April 30, 1997.
As in recent quarters, the relative stability of long-term tax-
exempt bond yields was supported by low levels of new municipal bond
issuance. Over the past six months, approximately $90 billion in
long-term tax-exempt bonds was underwritten, a decline of more than
6% versus the corresponding period a year earlier. During the three
months ended April 30, 1997, $41 billion in new long-term municipal
bonds was issued, also a 6% decline in issuance as compared to the
three-month period ended April 30, 1996. Overall investor demand has
remained strong, particularly from property and casualty insurance
companies and individual retail investors. In recent years, investor
demand has increased whenever tax-exempt bond yields have approached
or exceeded the 6% level as they have in the past few months.
<PAGE>
Additionally, in recent months much of the new bond issuance was
dominated by a number of larger issues. These included $710 million
in New York City water bonds, $600 million in state of California
bonds, $1 billion in New York City general obligation bonds, $435
million in Dade County, Florida water and sewer revenue bonds, $450
million in Puerto Rico Electric Authority issues, and $930 million
in Port Authority of New York and New Jersey issues. These bonds
have typically been issued in states with relatively high state
income taxes and consequently generally were underwritten at yields
that were relatively unattractive to residents in other states. This
has exacerbated the general decline in overall issuance in recent
years, making the decrease in supply even more dramatic for general
market investors.
The present economic situation remains nearly ideal. The domestic
economy continues to grow steadily with little, if any, sign of a
resurgence in inflation. Recent economic growth generated
considerable unexpected tax revenues for the Federal government.
Forecasts for the 1997 Federal fiscal deficit were reduced to under
$100 billion, a level not seen since the early 1980s. Such a reduced
Federal deficit enhances the prospect for a balanced Federal budget.
All of these factors support a scenario of steady, or even falling,
interest rates in the coming years. Present annual estimates of
future municipal bond issuance remain centered around $175 billion,
indicating that the current relative scarcity of tax-exempt bonds
should continue for at least the remainder of the year. Should
interest rates begin to decline later this year, either as the
result of a balanced Federal budget or continued benign inflation,
investors are unlikely to be able to purchase long-term municipal
bonds at their currently attractive levels.
Portfolio Strategy
During the past six months, we maintained a neutral-to-slightly
constructive investment strategy that concentrated on providing an
attractive level of tax-exempt income while seeking to preserve the
Fund's net asset value. The everchanging perception of the state of
the economy, and the need for possible further monetary policy
tightening by the FRB, caused large swings in interest rates over
this time period.
We have strived to take advantage of market fluctuations to seek to
enhance the Fund's total return. We purchased interest rate-
sensitive bonds in the middle of January when tax-exempt interest
rates increased to attractive levels. However, we subsequently sold
these issues after the bond market rally in early February. Looking
forward, we expect the FRB to continue raising short-term interest
rates, which is expected to place negative pressure on long-term tax-
exempt interest rates. We anticipate maintaining a neutral portfolio
strategy until there are signs that the economy is slowing to below
trend growth, thereby reducing the threat of rising inflation.
<PAGE>
The yield on the Fund's Auction Market Preferred Shares has been
trading within a narrow range between 3.25%--3.65%. Over the past
few weeks, the interest rate on the Preferred Shares has been
greater than 4% in response to pressures from seasonal corporate and
individual tax payments. This interest rate has started to decline,
but is expected to return to normal levels shortly. Leverage contin-
ues to benefit the Common Shareholders by significantly augmenting
their yield. However, should the spread between short-term and long-
term tax-exempt interest rates narrow, the benefits of leverage will
decline and the yield on the Fund's Common Shares will be reduced.
(For a complete explanation of the benefits and risks of leveraging,
see page 3 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 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 30, 1997
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.
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 pickup 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.
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield Florida Fund's portfolio
holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list below and at
right.
AMT Alternative Minimum Tax (subject to)
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
S/F Single-Family
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--95.1%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Alachua County, Florida, Public Improvement Revenue Refunding Bonds,
5.125% due 8/01/2021 (g) $ 1,842
AAA Aaa 2,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (b) 2,756
A+ A1 13,700 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal
River), Series A, 6.625% due 1/01/2027 14,648
AAA Aaa 3,575 Collier County, Florida, School Board, COP, 5% due 2/15/2016 (g) 3,296
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (c):
AAA Aaa 1,000 6.55% due 10/01/2013 1,066
AAA Aaa 5,000 6.60% due 10/01/2022 5,306
<PAGE>
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 2,098
AAA Aaa 2,805 Refunding (Multi-County Program), 7% due 4/01/2028 (e) 2,957
NR* Aaa 2,000 Series A, 7.40% due 10/01/2023 2,097
NR* Aaa 1,815 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due
3/01/2022 (f) 1,906
AAA Aaa 3,500 Florida Ports Financing Commission Revenue Bonds (State Transportation Trust
Fund), AMT, 5.375% due 6/01/2027 (c) 3,261
Florida State Board of Education, Public Education Revenue Bonds (Capital
Outlay) (h):
AAA Aaa 11,800 Series A, 6.75% due 6/01/2001 12,773
AAA Aaa 4,500 Series B, 6.70% due 6/01/2001 4,863
AAA Aaa 7,165 Florida State Board of Regents, University Systems Improvement Revenue Bonds,
5.25% due 7/01/2022 (c) 6,718
AAA Aaa 1,500 Florida State Correctional Privatization Commission, COP (Youthful--Polk
County), Series B, 5% due 8/01/2017 (b) 1,373
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (In Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (continued)
<S> <S> <C> <S> <C>
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 $ 2,171
AAA Aaa 4,500 6.75% due 7/01/2013 4,848
NR* NR* 5,495 Florida State Mid-Bay Bridge Authority Revenue Bonds, Series A, 7.50% due
10/01/2017 5,860
AAA Aaa 14,750 Florida State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series A,
5% due 7/01/2019 (d) 13,355
AA Aa 5,000 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 6.50% due
10/01/2002 (h) 5,463
AAA Aaa 4,000 Greater Orlando Aviation Authority Revenue Bonds (Orlando Airport Facilities),
AMT, Series A, 6.50% due 10/01/2012 (d) 4,231
A A 6,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2002 (h) 6,594
<PAGE>
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System--J.
Knox Village), 6.375% due 12/01/2012 (c) 1,051
AAA Aaa 5,000 Hillsborough County, Florida, School Board, COP (Master Lease Program), 5.25%
due 7/01/2017 (c) 4,732
Hillsborough County, Florida, Utility Revenue Refunding Bonds:
BBB+ Baa1 1,245 Series A, 7% due 8/01/2014 1,338
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (g) 2,144
AAA Aaa 2,000 Jacksonville, Florida, District Water and Sewer Revenue Bonds, 5% due
10/01/2020 (c) 1,815
NR* VMIG1++ 2,400 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds (Genesis Rehabilitation Hospital), VRDN, 4.40% due 5/01/2021 (a) 2,400
AAA Aaa 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT, Series A, 6.50%
due 10/01/2013 (c) 4,216
AAA NR* 2,480 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series B, 7.30% due 1/01/2028 (f) 2,709
AAA Aaa 2,000 Orange County, Florida, Health Facilities Authority Revenue Bonds (Hospital--
Orlando Regional Healthcare), Series A, 6.25% due 10/01/2013 (c) 2,154
AAA Aaa 5,000 Orange County, Florida, Tourist Development and Tax Revenue Bonds, Series B,
6.50% due 10/01/2019 (b) 5,369
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) 3,105
NR* VMIG1++ 600 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 4.60%
due 10/01/2011 (a) 600
A1 VMIG1++ 2,200 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 4.60% due 12/01/2015 (a) 2,200
A1+ VMIG1++ 700 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Light Company
Project), VRDN, 4.45% due 1/01/2026 (a) 700
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (In Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<PAGE>
Florida (concluded)
<S> <S> <C> <S> <C>
Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue
Bonds (Allegheny Health System) (c):
AAA Aaa $ 1,550 (Saint Anthony's), 6.75% due 12/01/2021 $ 1,669
AAA Aaa 2,000 Series A, 7% due 12/01/2015 2,173
AAA Aaa 5,000 Sarasota County, Florida, Solid Waste System Revenue Bonds, 5.50% due
10/01/2021 (b) 4,831
AAA Aaa 5,050 South Broward Hospital District, Florida, Revenue Refunding Bonds, 5.25%
due 5/01/2021 (c) 4,711
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegheny Health System--Saint Joseph),
6.75% due 12/01/2017 (c) 3,230
Tampa, Florida, Utility Tax Revenue Bonds (b)(i):
AAA Aaa 4,500 6.16% due 4/01/2022 1,040
AAA Aaa 2,540 5.75% due 10/01/2022 569
Total Investments (Cost--$157,295)--95.1% 164,011
Other Assets Less Liabilities--4.9% 8,382
--------
Net Assets--100.0% $172,393
========
<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, 1997.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)FSA Insured.
(h)Prerefunded.
(i)Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL INFORMATION
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1997
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$157,295,232) (Note 1a) $164,011,101
Cash 69,622
Receivables:
Securities sold $ 12,759,689
Interest 2,457,232 15,216,921
------------
Deferred organization expenses (Note 1e) 2,566
Prepaid expenses and other assets 34,908
------------
Total assets 179,335,118
------------
Liabilities: Payables:
Securities purchased 6,658,566
Dividends to shareholders (Note 1f) 142,832
Investment adviser (Note 2) 70,343 6,871,741
------------
Accrued expenses and other liabilities 69,946
------------
Total liabilities 6,941,687
------------
Net Assets: Net assets $172,393,431
============
Capital: Capital Shares (unlimited number of shares of beneficial
interest authorized) (Note 4):
Preferred Shares, par value $.05 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 (7,865,388 shares
issued and outstanding) $ 786,539
Paid-in capital in excess of par 109,691,884
Undistributed investment income--net 1,047,703
Accumulated realized capital losses on investments--net (848,564)
Unrealized appreciation on investments--net 6,715,869
------------
Total--Equivalent to $14.93 net asset value per Common Share
(market price--$14.625) 117,393,431
------------
Total capital $172,393,431
============
<FN>
*Auction Market Preferred Shares.
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL INFORMATION (continued)
<CAPTION>
Statement of Operations
For the Six Months Ended April 30, 1997
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,052,114
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 431,417
Commission fees (Note 4) 68,778
Professional fees 37,907
Accounting services (Note 2) 33,566
Printing and shareholder reports 20,459
Transfer agent fees 18,811
Trustees' fees and expenses 11,265
Listing fees 7,970
Custodian fees 7,392
Pricing fees 2,730
Amortization of organization expenses (Note 1e) 1,264
Other 7,874
------------
Total expenses 649,433
------------
Investment income--net 4,402,681
------------
Realized & Unreal- Realized gain on investments--net 724,054
ized Gain (Loss) Change in unrealized appreciation on investments--net (2,735,810)
on Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 2,390,925
============
</TABLE>
<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: 1997 1996
<S> <S> <C> <C>
Operations: Investment income--net $ 4,402,681 $ 8,878,718
Realized gain on investments--net 724,054 2,221,773
Change in unrealized appreciation/depreciation on investments
--net (2,735,810) (846,661)
------------ ------------
Net increase in net assets resulting from operations 2,390,925 10,253,830
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Common Shares (3,539,106) (7,040,873)
Shareholders Preferred Shares (819,918) (1,911,250)
(Note 1f): Realized gain on investments--net:
Common Shares (347,814) --
Preferred Shares (95,370) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (4,802,208) (8,952,123)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment
Transactions of dividends and distributions 100,582 --
(Note 4): ------------ ------------
Net increase in net assets derived from capital share
transactions 100,582 --
------------ ------------
Net Assets: Total increase (decrease) in net assets (2,310,701) 1,301,707
Beginning of period 174,704,132 173,402,425
------------ ------------
End of period* $172,393,431 $174,704,132
------------ ------------
<FN>
*Undistributed investment income--net $ 1,047,703 $ 1,004,046
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL INFORMATION (concluded)
<CAPTION>
Financial Highlights
For the
Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended For the Year Ended
April 30, October 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.23 $ 15.07 $ 13.82 $ 16.74 $ 14.13
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .56 1.13 1.14 1.15 1.17
Realized and unrealized gain (loss)
on investments--net (.25) .17 1.25 (2.46) 2.66
-------- -------- -------- -------- --------
Total from investment operations .31 1.30 2.39 (1.31) 3.83
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.45) (.90) (.88) (.95) (.97)
Realized gain on investments--net (.04) -- -- (.43) (.04)
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.49) (.90) (.88) (1.38) (1.01)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.11) (.24) (.26) (.15) (.20)
Realized gain on investments--net (.01) -- -- (.08) (.01)
-------- -------- -------- -------- --------
Total effect of Preferred Share activity (.12) (.24) (.26) (.23) (.21)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.93 $ 15.23 $ 15.07 $ 13.82 $ 16.74
======== ======== ======== ======== ========
Market price per share, end of period $ 14.625 $ 14.50 $ 13.375 $ 11.375 $ 16.625
======== ======== ======== ======== ========
Total Investment Based on market price per share 4.27%+++ 15.29% 25.63% (24.94%) 20.13%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 1.34%+++ 7.47% 16.50% (9.43%) 26.27%
======== ======== ======== ======== ========
Ratios to Average Expenses .75%* .74% .77% .76% .78%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 5.10%* 5.11% 5.32% 5.15% 5.16%
======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Shares, end of
Data: period (in thousands) $117,393 $119,704 $118,402 $108,591 $130,275
======== ======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 55,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000
======== ======== ======== ======== ========
Portfolio turnover 50.85% 119.29% 97.93% 18.31% 32.84%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,134 $ 3,176 $ 3,153 $ 2,974 $ 3,369
======== ======== ======== ======== ========
Dividends Investment income--net $ 373 $ 869 $ 927 $ 549 $ 719
Per 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.
++Dividends per share have been adjusted to reflect a two-for-one
stock split that occurred on December 1, 1994.
+++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 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.
<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 the 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.
* 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).
<PAGE>
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.
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1997 were $84,447,346 and
$93,030,068, respectively.
Net realized and unrealized gains as of April 30, 1997 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 724,054 $ 6,715,869
---------- -----------
Total $ 724,054 $ 6,715,869
========== ===========
<PAGE>
As of April 30, 1997, unrealized appreciation for Federal income tax
purposes aggregated $6,715,869, of which $7,102,997 related to
appreciated securities and $387,128 related to depreciated
securities. The aggregate cost of investments at April 30, 1997 for
Federal income tax purposes was $157,295,232.
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, 1997, shares issued and
outstanding increased by 6,212 to 7,865,388 as a result of dividend
reinvestments. At April 30, 1997, total paid-in capital amounted to
$110,478,423.
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, 1997 was 4.00%.
As of April 30, 1997, 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, 1997, Merrill Lynch, Pierce, Fenner & Smith Inc., an
affiliate of FAM, earned $36,650 as commissions.
5. Subsequent Event:
On May 9, 1997, the Fund's Board of Trustees declared an ordinary
income dividend to holders of Common Shares in the amount of
$.071885 per share, payable on May 29, 1997 to shareholders of
record as of May 19, 1997.
