MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1998
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
Philip M. Mandel, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
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
Printed on post-consumer recycled paper
MuniYield Florida Fund
TO OUR SHAREHOLDERS
For the six months ended April 30, 1998, the Common Shares of
MuniYield Florida Fund earned $0.602 per share income dividends,
which included earned and unpaid dividends of $0.070. This
represents a net annualized yield of 7.95%, based on a month-end net
asset value of $15.27 per share. Over the same period, the total
investment return on the Fund's Common Shares was +2.19%, based on a
change in per share net asset value from $15.59 to $15.27, and
assuming reinvestment of $0.605 per share income dividends and
$0.055 per share capital gains distributions.
For the six months ended April 30, 1998, the Fund's Auction Market
Preferred Shares had an average yield of 3.71%.
The Municipal Market Environment
During the six months ended April 30, 1998, bond yields generally
moved lower, and by mid-January 1998 had declined to recent historic
lows. Long-term US Treasury bond yields declined 20 basis points
(0.20%) during the same period and stood at 5.95% by April 30, 1998.
Similarly, long-term uninsured tax-exempt bond yields, as measured
by the Bond Buyer Revenue Bond Index, fell approximately 35 basis
points to 5.25%, a level not seen since the mid-1970s. While low
inflation has supported lower interest rates, much of the decline in
bond yields in late 1997 and early 1998 was driven more by the
turmoil in Asian financial markets than by domestic economic
fundamentals. Weak economic conditions in Asia were expected to
negatively impact US growth through reduced export demand.
Additionally, inflation in the United States was also expected to
decline in response to lower prices on goods imported from Asian
manufacturers.
However, in recent months, many investors have become increasingly
concerned that most of the downturn in Asia, especially in Japan,
has already occurred and any future deterioration will not be severe
enough to constrain US economic growth and inflationary pressures.
These concerns served to push interest rates higher in the latter
part of the period, causing fixed-income yields to retrace much of
their earlier gains.
Thus far in 1998, the municipal bond market has experienced
unexpectedly strong supply pressures. These supply pressures have
prevented tax-exempt bond yields from declining as much as US
Treasury bond yields. Over the last six months, more than $135
billion in new tax-exempt bonds were underwritten, an increase of
over 40% compared to the same period a year ago. During the last
three months, municipalities issued over $72 billion in new
securities, an increase of more than 60% compared to the same three-
month period in 1997. Additionally, corporate issuers have also
viewed current interest rate levels as an opportunity to issue
significant amounts of taxable securities. Thus far in 1998, over
$100 billion in investment-grade corporate bonds have been
underwritten, an increase of more than 60% relative to the
comparable period a year ago. This sizeable corporate bond issuance
has tended to support generally higher fixed-income yields and
reduce the demand for tax-exempt bonds.
However, the recent pace of new municipal bond issuance is unlikely
to be maintained. Continued increases in bond issuance will require
lower and lower tax-exempt bond yields to generate the economic
savings necessary for additional municipal bond refinancings.
Preliminary estimates for 1998 total municipal bond issuance are
presently in the $200 billion--$225 billion range. These estimates
suggest that recent supply pressures are likely to abate later in
the year. Municipal bond investors received approximately $30
billion earlier this year in coupon payments, bond maturities and
proceeds from early redemptions. The demand generated by these
assets has helped offset the increase in supply seen thus far this
year. Furthermore, looking ahead, June and July have also tended to
be periods of strong investor demand as seasonal factors are likely
to generate strong income flows similar to those seen earlier this
year.
MuniYield Florida Fund
April 30, 1998
It is also possible that at least some of the recent economic
strength seen in the United States will be reversed in the coming
months. A particularly mild winter has been partially responsible
for a strong housing sector, as well as other construction
industries. This recent strong trend may not be sustained and may
lead to weaker construction growth later this year. Additionally,
strong economic growth in 1997 and the increased use of electronic
tax filing have resulted in larger and earlier Federal and state
income tax refunds to many individuals. These refunds appear to have
supported strong consumer spending in recent months, but may be
borrowing against weaker spending later this year. In addition, the
continued impact of the Asian financial crisis on the US domestic
economy's future growth remains unclear. Barring a dramatic and
unexpected resurgence of domestic inflation, we do not believe that
the Federal Reserve Board will be willing to raise interest rates
until the full impact of the Asian situation can be established.
All these factors suggest that over the near term, tax-exempt as
well as taxable bond yields are unlikely to rise by any appreciable
amount. Recent supply pressures have caused municipal bond yield
ratios to rise relative to US Treasury bond yields. At April 30,
1998, long-term tax-exempt bond yields were at attractive yield
ratios relative to comparable US Treasury securities (over 90%), and
well in excess of their expected range of 85%--88%. Any further
pressure upon the municipal market may well represent a very
attractive investment opportunity.
Portfolio Strategy
During the six months ended April 30, 1998, we shifted from our
defensive position to a more constructive investment outlook. We
expected economic growth to slow along with a continued reduction in
inflation as a result of the declines in Asian equity markets. As of
April 30, 1998, only one of these expectations had been met.
Inflation has continued to fall but economic growth has not slowed.
Looking forward to the balance of 1998, we expect to maintain our
constructive outlook. We believe the continued instability of the
Asian equity markets will have a negative impact on the US economy,
allowing inflation and interest rates to decline further.
The yield on the Fund's Auction Market Preferred Shares has been
trading between 3.15%--4.00% during the past 12 months. Recently,
the yield has been at the higher end of this range because of
temporary tax season pressure, but is expected to return to the
3.40% level in the next few weeks. Leverage continues to benefit the
Fund's 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, as a result, reduce the yield to the Fund's Common Shares. (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
May 29, 1998
MuniYield Florida Fund
April 30, 1998
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.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute substantially all of its
net investment income to its shareholders on a monthly basis.
However, in order to provide shareholders with a more consistent
yield to the current trading price of Common Shares of the Fund, the
Fund may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in
any month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result,
the dividends paid by the Fund for any particular month may be more
or less than the amount of net investment income earned by the Fund
during such month. The Fund's current accumulated but undistributed
net investment income, if any, is disclosed in the Statement of
Assets, Liabilities and Capital, which comprises part of the
Financial Information included in this report.
MuniYield Florida Fund
April 30, 1998
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 at right.
AMT Alternative Minimum Tax (subject to)
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--98.9%
<S> <S> <C> <S> <C>
AAA Aaa $ 5,750 Alachua County, Florida, Public Improvement Revenue Refunding Bonds, 5.125%
due 8/01/2021 (g) $ 5,608
AAA Aaa 2,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (b) 2,861
A+ A1 13,700 Citrus County, Florida, PCR, Refunding (Florida Power Corp.--Crystal
River), Series A, 6.625% due 1/01/2027 14,819
NR* Aaa 3,000 Clay County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County), AMT,
5.35% due 10/01/2018 (e)(f) 2,985
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (c):
AAA Aaa 1,000 6.55% due 10/01/2013 1,085
AAA Aaa 5,000 6.60% due 10/01/2022 5,433
AAA Aaa 4,000 Dade County, Florida, Aviation Revenue Bonds (Miami International Airport),
Series C, 5.125% due 10/01/2027 (g) 3,890
AA- VMIG1++ 100 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds
(Florida Power and Light Company), VRDN, 4.10% due 6/01/2021 (a) 100
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 2,129
AAA Aaa 2,805 Refunding (Multi-County Program), 7% due 4/01/2028 (e) 3,071
NR* Aaa 2,000 Series A, 7.40% due 10/01/2023 2,105
NR* Aaa 1,575 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G-1, 7.90% due
3/01/2022 (f) 1,665
Florida State Board of Education, Public Education Revenue Bonds
(Capital Outlay):
AAA Aaa 11,800 Series A, 6.75% due 6/01/2001 (h) 12,761
AA+ Aa2 2,750 Series A, 6.10% due 6/01/2024 2,942
AAA Aaa 4,500 Series B, 6.70% due 6/01/2001 (h) 4,860
AA+ Aa2 10,000 Florida State Department of Transportation (Right of Way), Series A,
5% due 7/01/2027 9,514
AA+ Aa2 2,040 Florida State Department of Transportation (Right of Way Acquisition and
Bridge), 5.375% due 7/01/2026 2,044
AAA Aaa 6,500 Florida State Division Board of Finance, Department of General Services
Revenue Bonds (Department of Natural Resource Preservation), Series 2000-A,
6.75% due 7/01/2001 (b)(h) 7,097
</TABLE>
MuniYield Florida Fund
April 30, 1998
<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 Mid-Bay Bridge Authority Revenue Bonds, Series A:
NR* NR* $ 5,495 7.50% due 10/01/2017 $ 6,152
NR* Aaa 1,500 5.40%** due 10/01/2018 (b) 500
NR* Aaa 3,005 5.40%** due 10/01/2019 (b) 950
NR* Aaa 1,695 5.45%** due 10/01/2020 (b) 502
AA Aa 5,000 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 6.50% due
10/01/2002 (h) 5,509
AAA Aaa 4,000 Greater Orlando Aviation Authority Revenue Bonds (Orlando Airport Facilities),
AMT, Series A, 6.50% due 10/01/2012 (d) 4,331
A A3 6,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County
Center Project), Second Series, 6.75% due 7/01/2002 (h) 6,634
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System--
J. Knox Village), 6.375% due 12/01/2003 (c)(h) 1,085
Hillsborough County, Florida, Utility Revenue Refunding Bonds:
BBB+ Baa1 1,245 Series A, 7% due 8/01/2014 1,343
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (g) 2,151
AAA Aaa 1,300 Indian River County, Florida, Hospital District Revenue Refunding Bonds,
5.70% due 10/01/2015 (g) 1,365
AAA Aaa 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT, Series A,
6.50% due 10/01/2013 (c) 4,292
AAA NR* 1,800 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series B, 7.30% due 1/01/2028 (f) 2,019
A1+ VMIG1++ 1,000 Martin County, Florida, PCR, Refunding (Florida Power & Light Company
Project), VRDN, 4.10% due 9/01/2024 (a) 1,000
AAA Aaa 5,000 Miami Beach, Florida, Parking Revenue Bonds, 5.125% due 9/01/2022 (g) 4,874
Miami, Florida, Dade County, Special Obligation Refunding, Series A (c):
AAA Aaa 15,000 5.289%** due 10/01/2021 4,192
AAA Aaa 23,365 5.61%** due 10/01/2025 5,207
AAA Aaa 2,625 Okaloosa County, Florida, Gas District Revenue Bonds (Gas System), Series A,
5.20% due 10/01/2019 (c) 2,613
Orange County, Florida, Health Facilities Authority Revenue Bonds (Hospital--
Orlando Regional Healthcare)(c):
AAA Aaa 500 Refunding, Series C, 6.25% due 10/01/2016 565
AAA Aaa 2,000 Series A, 6.25% due 10/01/2013 2,262
AAA Aaa 5,000 Orange County, Florida, Tourist Development, Tax Revenue Bonds, Series B,
6.50% due 10/01/2002 (b)(h) 5,518
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds,
7.20% due 6/01/2015 (d) 1,862
NR* Aaa 1,390 Palm Beach County, Florida, HFA, S/F Mortgage Purchase Revenue Bonds,
AMT, Series A, 6.80% due 10/01/2027 (e)(f) 1,479
Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds
(Allegany Health System) (c)(h):
AAA Aaa 1,550 (Saint Anthony's), 6.75% due 12/01/2003 1,728
AAA Aaa 2,000 Series A, 7% due 12/01/2001 2,214
AAA Aaa 2,000 Tampa, Florida, Health System Revenue Bonds (Catholic Health), Series A-1,
4.875% due 11/15/2023 (c) 1,850
</TABLE>
MuniYield Florida Fund
April 30, 1998
<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 $ 4,710 Tampa, Florida, Hillsborough County, Expressway Authority, Revenue Refunding
Bonds, 5% due 7/01/2027 (b) $ 4,514
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegany Health System--Saint Joseph), 6.75%
due 12/01/2001 (c)(h) 3,299
AAA Aaa 2,500 Tampa, Florida, Sports Authority Revenue Bonds (Sales Tax Payments--Stadium
Project), 5.25% due 1/01/2027 (c) 2,478
Tampa, Florida, Utility Tax Improvement Bonds (b):
AAA Aaa 3,295 5.02%** due 10/01/2013 1,498
AAA Aaa 3,415 5.07%** due 10/01/2014 1,463
AAA Aaa 3,520 Village Center Community Development District, Florida, Recreational Revenue
Refunding Bonds, Senior Series A, 5% due 11/01/2021 (c) 3,388
Puerto Rico--0.6%
BBB+ Baa1 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series T, 6% due
7/01/2016 1,054
Total Investments (Cost--$166,048)--99.5% 174,860
Other Assets Less Liabilities--0.5% 923
--------
Net Assets--100.0% $175,783
========
<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, 1998.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)FSA Insured.
(h)Prerefunded.
*Not Rated.
**Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 1998
were as follows:
Percent of
S&P Rating/Moody's Rating Net Assets
AAA/Aaa 70.4%
AA/Aa 11.4
A/A 12.2
BBB/Baa 1.4
NR (Not Rated) 3.5
Other++ 0.6
[FN]
++Temporary investments in short-term municipal securities.
MuniYield Florida Fund
April 30, 1998
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$166,048,266) (Note 1a) $174,859,626
Cash 53,811
Receivables:
Securities sold $ 3,979,764
Interest 2,322,115 6,301,879
------------
Prepaid expenses and other assets 9,195
------------
Total assets 181,224,511
------------
Liabilities: Payables:
Securities purchased 5,236,099
Dividends to shareholders (Note 1e) 90,090
Investment adviser (Note 2) 73,000 5,399,189
------------
Accrued expenses and other liabilities 42,366
------------
Total liabilities 5,441,555
------------
Net Assets: Net assets $175,782,956
============
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 (7,912,069 shares
issued and outstanding) $ 791,207
Paid-in capital in excess of par 110,412,001
Undistributed investment income--net 1,286,620
Accumulated realized capital losses on investments--net (518,232)
Unrealized appreciation on investments--net 8,811,360
------------
Total--Equivalent to $15.27 net asset value per Common Share
(market price--$15.4375) 120,782,956
------------
Total capital $175,782,956
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1998
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended April 30, 1998
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 4,946,063
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 437,024
Commission fees (Note 4) 69,291
Professional fees 40,844
Accounting services (Note 2) 15,715
Transfer agent fees 15,674
Printing and shareholder reports 14,981
Trustees' fees and expenses 11,348
Listing fees 8,063
Custodian fees 7,355
Pricing fees 3,394
Other 10,141
------------
Total expenses 633,830
------------
Investment income--net 4,312,233
------------
Realized & Realized gain on investments--net 1,395,704
Unrealized Change in unrealized appreciation on investments--net (2,024,103)
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 3,683,834
(Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</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: 1998 1997
<S> <S> <C> <C>
Operations: Investment income--net $ 4,312,233 $ 8,861,646
Realized gain on investments--net 1,395,704 1,872,160
Change in unrealized appreciation on investments--net (2,024,103) 1,383,784
------------ ------------
Net increase in net assets resulting from operations 3,683,834 12,117,590
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,453,268) (7,029,122)
Shareholders Preferred Shares (594,044) (1,816,122)
(Note 1f): Realized gain on investments--net:
Common Shares (1,806,503) (347,814)
Preferred Shares (405,724) (95,370)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (6,259,539) (9,288,428)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment of
Transactions dividends and distributions 627,860 197,507
(Note 4): ------------ ------------
Net increase in net assets derived from capital share
transactions 627,860 197,507
------------ ------------
Net Assets: Total increase (decrease) in net assets (1,947,845) 3,026,669
Beginning of period 177,730,801 174,704,132
------------ ------------
End of period* $175,782,956 $177,730,801
============ ============
<FN>
*Undistributed investment income--net $ 1,286,620 $ 1,021,699
============ ============
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1998
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
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: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.59 $ 15.23 $ 15.07 $ 13.82 $ 16.74
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .55 1.13 1.13 1.14 1.15
Realized and unrealized gain (loss)
on investments--net (.08) .41 .17 1.25 (2.46)
-------- -------- -------- -------- --------
Total from investment operations .47 1.54 1.30 2.39 (1.31)
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.44) (.89) (.90) (.88) (.95)
Realized gain on investments--net (.22) (.04) -- -- (.43)
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.66) (.93) (.90) (.88) (1.38)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.08) (.24) (.24) (.26) (.15)
Realized gain on investments--net (.05) (.01) -- -- (.08)
-------- -------- -------- -------- --------
Total effect of Preferred Share activity (.13) (.25) (.24) (.26) (.23)
-------- -------- -------- -------- --------
Net asset value, end of period $ 15.27 $ 15.59 $ 15.23 $ 15.07 $ 13.82
======== ======== ======== ======== ========
Market price per share, end of period $15.4375 $ 15.50 $ 14.50 $ 13.375 $ 11.375
======== ======== ======== ======== ========
Total Investment Based on market price per share 3.91%+++ 13.76% 15.29% 25.63% (24.94%)
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 2.19%+++ 8.93% 7.47% 16.50% (9.43%)
======== ======== ======== ======== ========
Ratios to Average Expenses .73%* .75% .74% .77% .76%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 4.93%* 5.04% 5.11% 5.32% 5.15%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares,
Data: end of period (in thousands) $120,783 $122,731 $119,704 $118,402 $108,591
======== ======== ======== ======== ========
Preferred Shares outstanding, end of
period (in thousands) $ 55,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000
======== ======== ======== ======== ========
Portfolio turnover 34.81% 107.09% 119.29% 97.93% 18.31%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,196 $ 3,231 $ 3,176 $ 3,153 $ 2,974
======== ======== ======== ======== ========
Dividends Investment income--net $ 270 $ 826 $ 869 $ 927 $ 549
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>
MuniYield Florida Fund
April 30, 1998
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.
(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
financial 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.
MuniYield Florida Fund
April 30, 1998
(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) 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 including proceeds from the
issuance of Preferred Shares.
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, 1998 were $66,342,604 and
$60,072,403, respectively.
Net realized gains for the six months ended April 30, 1998 and net
unrealized gains as of April 30, 1998 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 1,395,704 $ 8,811,360
----------- -----------
Total $ 1,395,704 $ 8,811,360
=========== ===========
As of April 30, 1998, unrealized appreciation for Federal income tax
purposes aggregated $8,811,360, of which $9,367,971 related to
appreciated securities and $556,611 related to depreciated
securities. The aggregate cost of investments at April 30, 1998 for
Federal income tax purposes was $166,048,266.
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
Shares issued and outstanding during the six months ended April 30,
1998 and the year ended October 31, 1997 increased by 40,346 and
12,947, respectively, as a result of dividend reinvestment.
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, 1998 was 4.00%.
As of April 30, 1998, 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, 1998, Merrill Lynch, Pierce, Fenner & Smith Inc., an
affiliate of FAM, earned $37,786 as commissions.
5. Subsequent Event:
On May 7, 1998 the Fund's Board of Trustees declared an ordinary
income dividend to holders of Common Shares in the amount of
$.070038 per share, payable on May 28, 1998 to shareholders of
record as of May 21, 1998.
