MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1999
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
DEAR SHAREHOLDER
For the six months ended April 30, 1999, the Common Shares of
MuniYield Florida Fund earned $0.431 per share income dividends,
which included earned and unpaid dividends of $0.066. This
represents a net annualized yield of 5.84%, based on a month-end per
share net asset value of $14.89. Over the same period, the total
investment return on the Fund's Common Shares was +0.29%, based on a
change in per share net asset value from $15.70 to $14.89, and
assuming reinvestment of $0.656 per share ordinary income dividends
and $0.214 per share capital gains distributions.
For the six-month period ended April 30, 1999, the Fund's Auction
Market Preferred Shares had an average yield of 4.06%.
The Municipal Market Environment
During the six months ended April 30, 1999, long-term bond yields
generally moved higher. From November 1998 through mid-January 1999,
long-term bond yields traded in a relatively narrow range. However,
during February, a number of economic indicators were released that
suggested that economic growth in the United States would likely
remain strong throughout most of 1999. Consequently, long-term US
Treasury bond yields rose more than 60 basis points (0.60%) to 5.70%
by early March. During the remainder of the six-month period, US
Treasury bond yields traded between 5.50% and 5.70% as the lack of
inflationary pressures offset much of the concerns generated by
continued strong economic growth. During most of the period, long-
term, uninsured tax-exempt bond yields exhibited far less volatility
and were largely stable. Also, long-term municipal bond yields rose
just 5 basis points to 5.29% at the end of April 1999, as measured
by the Bond Buyer Revenue Bond Index.
In recent months, the tax-exempt market was better able to withstand
much of the upward pressure on bond yields because of its stronger
technical position. While the continued positive inflationary
environment limited some of the recent increases in taxable bond
yields, a deteriorating supply/demand position helped push taxable
bond yields significantly higher than municipal bond yields. Much of
the US Treasury bond market's underperformance in recent months can
be attributed to the large amounts of taxable corporate issuance.
Large taxable corporate underwritings reduced the demand for US
Government securities in recent months, pushing US Treasury bond
yields higher.
On the other hand, the tax-exempt bond market enjoyed only limited
new-issue supply. During the six months ended April 30, 1999, more
than $123 billion in new long-term tax-exempt securities was
underwritten, a decline of 10% compared to the same period a year
ago. Municipalities issued less than $60 billion in long-term tax-
exempt securities during the three months ended April 30, 1999, a
decline of 25% compared to the April 30, 1998 quarter. More
recently, the rate of new tax-exempt issuance has declined even
further. During April 1999, just over $15 billion in long-term tax-
exempt securities was marketed, a decline of over 33% compared to
April 1998 levels. As municipal bond yields fell and stabilized in
recent quarters, the ability of municipalities to refinance existing
higher-couponed debt declined. This led to a significant decrease in
refunding issuance and an overall drop in new municipal bond supply.
When coupled with ongoing, moderate retail and institutional demand,
the tax-exempt bond market was able to avoid much of the yield
volatility exhibited by US Treasury securities.
Looking ahead, the expected combination of moderate economic growth
in the United States and continued negligible inflation suggests a
relatively stable interest rate environment. However, in recent
years, bond yields reached their annual peaks in early May and
declined for the remainder of the year. A meaningful decline in
fixed-income bond yields would require either evidence of a
significant slowdown in the US economy or the resumption of concerns
regarding renewed shocks to the world's economic system. Currently,
neither condition exists or seems likely in the immediate future. In
our opinion, this suggests a continuation of the narrow trading
ranges seen in recent months.
Portfolio Strategy
During the last several months, we adopted a neutral investment
strategy, since indicators pointed to a continuation of both benign
inflation and healthy domestic economic growth. These favorable
conditions led us to believe that long-term tax-exempt bond yields
would remain trading within a somewhat narrow range. Therefore, we
chose to focus on income-producing securities rather than on those
issues with the potential for capital gains. We believed that coupon
income could be the more significant segment for the Fund if the tax-
exempt bond market performed as anticipated. Keeping shareholder
income in mind, MuniYield Florida Fund remained fully invested for
most of the past several months, and we expect to maintain this
position going forward.
Short-term tax-exempt yields exhibited considerable volatility in
recent months. Interest rates paid to the Fund's Preferred
Shareholders traded below 3% in December 1998, reflecting heightened
investor demand at year-end. Current short-term interest rate levels
reflect tax season-related pressures, which we expect to abate soon.
During the six-month period ended April 30, 1999, leveraging
generated a significant incremental yield to the Fund's Common
Shareholders. Because we believe that the Federal Reserve Board's
monetary policy is likely to remain in a narrow range for the
remainder of the year, we expect short-term tax-exempt interest
rates to remain at, or slightly below, current levels. However,
should the spread between short-term and long-term interest rates
narrow, the benefits of the 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 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 in the months and
years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(William R. Bock)
William R. Bock
Vice President and Portfolio Manager
June 3, 1999
MuniYield Florida Fund
April 30, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on MuniYield Florida Fund's Board of
Trustees. We are pleased to announce that Terry K. Glenn has been
elected President and Trustee of the Fund. Mr. Glenn has held the
position of Executive Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in
wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Trustees.
MuniYield Florida Fund
April 30, 1999
PROXY RESULTS
During the six-month period ended April 30, 1999, MuniYield Florida
Fund's Common Shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April
21, 1999. The meeting was adjourned with respect to Proposal 3. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Shares Withheld
Voted For From Voting
<S> <S> <C> <C>
1. To elect the Fund's Directors: Terry K. Glenn 7,681,965 155,858
James H. Bodurtha 7,665,394 172,429
Herbert I. London 7,668,953 168,870
Robert R. Martin 7,650,378 187,445
Arthur Zeikel 7,650,853 186,970
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 7,685,402 56,977 95,444
3. To approve an amendment to the Certificate of Designation
of the Fund. Adjourned Adjourned Adjourned
</TABLE>
During the six-month period ended April 30, 1999, MuniYield Florida
Fund's Preferred Shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April
21, 1999. The meeting was adjourned with respect to Proposal 3. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Shares Withheld
Voted For From Voting
<S> <C> <C>
1. To elect the Fund's Board of Directors:
Terry K. Glenn, James H. Bodurtha, Herbert I. London,
Robert R. Martin, Joseph L. May, Andre F. Perold,
and Arthur Zeikel: 1,992 1
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 1,993 0 0
3. To approve an amendment to the Certificate of Designation
of the Fund. Adjourned Adjourned Adjourned
</TABLE>
MuniYield Florida Fund
April 30, 1999
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, their
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.
As a part of its investment strategy, the Fund may invest in certain
securities whose potential income return is inversely related to
changes in a floating interest rate ("inverse floaters"). In
general, income on inverse floaters will decrease when short-term
interest rates increase and increase when short-term interest rates
decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of
providing investment leverage and, as a result, the market value of
such securities will generally be more volatile than that of fixed-
rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than
if the Fund did not invest in these securities.
MuniYield Florida Fund
April 30, 1999
YEAR 2000 ISSUES
Many computer systems were designed using only two digits to
designate years. These systems may not be able to distinguish the
Year 2000 from the Year 1900 (commonly known as the "Year 2000
Problem"). The Fund could be adversely affected if the computer
systems used by the Fund's management or other Fund service
providers do not properly address this problem before January 1,
2000. The Fund's management expects to have addressed this problem
before then, and does not anticipate that the services it provides
will be adversely affected. The Fund's other service providers have
told the Fund's management that they also expect to resolve the Year
2000 Problem, and the Fund's management will continue to monitor the
situation as the Year 2000 approaches. However, if the problem has
not been fully addressed, the Fund could be negatively affected. The
Year 2000 Problem could also have a negative impact on the
securities in which the Fund invests, and this could hurt the Fund's
investment returns.
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, 1999
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
RIB Residual Interest 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)
<S> <S> <C> <S> <C>
Alabama--1.0%
AAA NR* $ 1,715 Jefferson County, Alabama, Sewer Revenue Bonds, RIB, Series 124, 6.39% due
2/01/2036 (c)(h) $ 1,780
Alaska--0.6%
A1 VMIG1++ 1,000 Valdez, Alaska, Marine Terminal, Revenue Refunding Bonds (Exxon Pipeline
Company Project), VRDN, Series C, 4.05% due 12/01/2033 (g) 1,000
Florida--100.1%
AAA Aaa 2,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (a) 2,949
AAA Aaa 5,400 Broward County, Florida, Airport System Revenue Bonds (Passenger Facility),
Convertible Lien, Series H-2, 4.75% due 10/01/2023 (a) 5,109
A+ A1 13,700 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal
River), Series A, 6.625% due 1/01/2027 14,714
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (b):
AAA Aaa 1,000 6.55% due 10/01/2013 1,094
AAA Aaa 5,000 6.60% due 10/01/2022 5,477
NR* Aaa 1,725 Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series A, 6.90% due 4/01/2020 (d) 1,814
Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT (d):
AAA Aaa 2,805 7% due 4/01/2028 (j) 3,075
NR* Aaa 2,500 (Multi-County Program), 5.20% due 4/01/2032 (b)(j) 2,484
NR* Aaa 1,850 Series A, 7.40% due 10/01/2023 (i) 1,935
BBB Baa1 3,000 Escambia County, Florida, PCR (Champion International Corporation Project),
AMT, 6.90% due 8/01/2022 3,311
A1 VMIG1++ 200 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project), VRDN,
4.20% due 7/01/2022 (g) 200
NR* Aaa 1,155 Florida HFA, Home Ownership Revenue Refunding Bonds, AMT, Series G-1, 7.90%
due 3/01/2022 (d) 1,214
Florida State Board of Education, Capital Outlay, GO (Public Education):
AAA Aaa 1,000 Series A, 6.10% due 6/01/2004 (f) 1,110
AAA Aaa 4,000 Series B, 4.50% due 6/01/2023 (b) 3,648
AAA Aaa 7,500 Series B, 4.50% due 6/01/2028 (b) 6,769
AA+ Aa2 3,600 Florida State Board of Education, Capital Outlay, GO, Refunding (Public
Education), Series C, 5.25% due 6/01/2007 3,852
</TABLE>
MuniYield Florida Fund
April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Florida (continued)
NR* NR* $ 5,495 Florida State Mid-Bay Bridge Authority Revenue Bonds, Series A, 7.50% due
10/01/2017 $ 6,106
AAA Aaa 5,000 Florida State Turnpike Authority, Turnpike Revenue Bonds (Department of
Transportation), Series B, 5% due 7/01/2016 (b) 5,027
AAA Aaa 4,000 Greater Orlando Aviation Authority, Florida, Revenue Bonds (Orlando Airport
Facilities), AMT, Series A, 6.50% due 10/01/2012 (c) 4,369
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System--J.
Knox Village), 6.375% due 12/01/2003 (b)(f) 1,081
Hillsborough County, Florida, Utility Revenue Refunding Bonds:
BBB+ Baa1 1,245 Series A, 7% due 8/01/2014 1,328
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (e) 2,149
AAA Aaa 1,300 Indian River County, Florida, Hospital Revenue Refunding Bonds, 5.70% due
10/01/2015 (e) 1,394
AAA Aaa 5,000 Jacksonville, Florida, Capital Improvement Revenue Refunding Bonds (Stadium
Project), 4.75% due 10/01/2025 (a) 4,713
AA Aa2 2,000 Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds (Saint
Johns River), Issue 2, Series 15, 6% due 10/01/2005 2,216
NR* VMIG1++ 1,100 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds (Genesis Rehabilitation Hospital), VRDN, 4% due 5/01/2021 (g) 1,100
A1+ VMIG1++ 600 Jacksonville, Florida, PCR, Refunding (Florida Power & Light Co. Project),
VRDN, 4.20% due 5/01/2029 (g) 600
AA- A1 5,000 Lakeland, Florida, Electric and Water Revenue Refunding and Improvement Bonds,
Series B, 5.625% due 10/01/2006 (f) 5,510
AAA Aaa 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT, Series A, 6.50% due
10/01/2013 (b) 4,298
AAA NR* 1,640 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series B, 7.30% due 1/01/2028 (d)(k) 1,864
A1+ VMIG1++ 100 Manatee County, Florida, PCR, Refunding (Florida Power and Light Company
Project), VRDN, 4% due 9/01/2024 (g) 100
AAA Aaa 2,500 Miami Beach, Florida, Parking Revenue Bonds, 5.125% due 9/01/2022 (e) 2,495
AAA Aaa 4,000 Miami--Dade County, Florida, School Board, COP, Revenue Refunding Bonds, Series C,
5% due 8/01/2025 (e) 3,903
AAA Aaa 7,600 Miami--Dade County, Florida, Water and Sewer Revenue Bonds, GO, Series A, 5% due
10/01/2029 (c) 7,414
AAA Aaa 2,625 Okaloosa County, Florida, Gas District, Revenue Refunding Bonds (Gas System),
Series A, 5.20% due 10/01/2019 (b) 2,664
AAA Aaa 2,000 Orange County, Florida, Health Facilities Authority Revenue Bonds (Hospital--
Orlando Regional Healthcare), Series A, 6.25% due 10/01/2013 (b) 2,326
AAA Aaa 500 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Hospital--Orlando Regional Healthcare), Series C, 6.25% due 10/01/2016 (b) 582
NR* Aaa 6,250 Orange County, Florida, School Board, COP, Series A, 5.25% due 8/01/2023 (b) 6,350
AAA Aaa 6,000 Orlando and Orange County Expressway Authority, Florida, Expressway Revenue
Refunding Bonds (Junior Lien), 5% due 7/01/2021 (c) 5,928
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20%
due 6/01/2015 (c) 1,912
NR* Aaa 1,390 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series A,
6.80% due 10/01/2027 (d)(j) 1,485
</TABLE>
MuniYield Florida Fund
April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Florida (concluded)
AAA AAA $ 1,000 Peace River/Manasota, Florida, Regional Water Supply Authority Revenue
Bonds (Peace River Option Project), Series A, 5% due 10/01/2023 (b) $ 979
AAA Aaa 7,625 Pembroke Pines, Florida, Capital Improvement Revenue Refunding Bonds, 5.25%
due 12/01/2026 (a) 7,734
A1+ VMIG1++ 150 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan Program), DATES, 4% due 12/01/2015 (a)(g) 150
AAA Aaa 2,160 Polk County, Florida, School Board, COP, Series A, 5% due 1/01/2024 (e) 2,115
Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company
Project), VRDN (g):
A1+ VMIG1++ 600 4% due 1/01/2026 600
A1+ VMIG1++ 4,000 4.20% due 3/01/2027 4,000
Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds (b)(f):
AAA Aaa 1,550 (Allegany Health System--Saint Anthony's), 6.75% due 12/01/2003 1,742
AAA Aaa 2,000 (Allegany Health System), Series A, 7% due 12/01/2001 2,198
Sarasota County, Florida, Public Hospital Board, Revenue Bonds (b):
NR* Aaa 5,000 RIB, Series 99, 6.665% due 7/01/2028 (h) 5,650
AAA Aaa 3,100 (Sarasota Memorial Hospital), Series B, 5.25% due 7/01/2024 3,192
AAA Aaa 6,000 Tampa, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 6.25% due
10/01/2002 (c)(f) 6,524
AAA Aaa 2,520 Village Center Community Development District, Florida, Recreational Revenue
Refunding Bonds, Series A, 5% due 11/01/2021 (b) 2,480
AAA Aaa 1,325 Winter Haven, Florida, Utility System Revenue Refunding and Improvement Bonds,
4.75% due 10/01/2028 (b) 1,245
New York--0.8%
A1+ VMIG1++ 1,400 Long Island Power Authority, New York, Electric System Revenue Bonds, VRDN,
Sub-Series 5, 4.25% due 5/01/2033 (g) 1,400
Puerto Rico--0.6%
BBB+ Baa1 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series T, 6% due
7/01/2016 1,079
Texas--2.8%
A1+ NR* 4,800 Harris County, Texas, Health Facilities Development Corporation, Hospital
Revenue Refunding Bonds (Methodist Hospital), VRDN, 4.25% due 12/01/2025 (g) 4,800
Total Investments (Cost--$179,516)--105.9% 184,337
Liabilities in Excess of Other Assets--(5.9%) (10,323)
--------
Net Assets--100.0% $174,014
========
<FN>
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FSA Insured.
(f)Prerefunded.
(g)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, 1999.
(h)The interest rate is subject to change periodically and
inversely based upon prevailing market rates. The interest rate
shown is the rate in effect at April 30, 1999.
(i)FHA Insured.
(j)FNMA Collateralized.
(k)FHLMC Collateralized.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1999
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1999
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$179,515,730) (Note 1a) $184,337,188
Cash 65,913
Receivables:
Securities sold $ 6,641,594
Interest 2,136,432 8,778,026
------------
Prepaid expenses and other assets 10,480
------------
Total assets 193,191,607
------------
Liabilities: Payables:
Securities purchased 19,075,690
Investment adviser (Note 2) 76,552 19,152,242
------------
Accrued expenses and other liabilities 25,248
------------
Total liabilities 19,177,490
------------
Net Assets: Net assets $174,014,117
============
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 (7,993,842 shares issued
and outstanding) $ 799,384
Paid-in capital in excess of par 111,667,496
Undistributed investment income--net 1,523,047
Undistributed realized capital gains on investments--net 202,732
Unrealized appreciation on investments--net 4,821,458
Total--Equivalent to $14.89 net asset value per Common Share
(market price--$14.875) 119,014,117
------------
Total capital $174,014,117
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1999
<S> <C> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 4,667,312
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 440,528
Commission fees (Note 4) 67,289
Professional fees 40,841
Accounting services (Note 2) 32,176
Transfer agent fees 19,809
Printing and shareholder reports 16,201
Trustees' fees and expenses 11,275
Listing fees 7,806
Custodian fees 6,934
Pricing fees 4,060
Other 13,222
------------
Total expenses 660,141
------------
Investment income--net 4,007,171
------------
Realized & Realized gain on investments--net 2,029,374
Unrealized Gain Change in unrealized appreciation on investments--net (4,463,033)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 1,573,512
(Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1999
FINANCIAL INFORMATION (continued)
<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: 1999 1998
<S> <C> <C> <C>
Operations: Investment income--net $ 4,007,171 $ 8,713,547
Realized gain on investments--net 2,029,374 4,230,658
Change in unrealized appreciation on investments--net (4,463,033) (1,550,972)
------------ ------------
Net increase in net assets resulting from operations 1,573,512 11,393,233
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,494,801) (6,806,895)
Shareholders Preferred Shares (386,672) (1,531,002)
(Note 1e): Realized gain on investments--net:
Common Shares (3,415,385) (1,758,807)
Preferred Shares (727,980) (453,420)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (8,024,838) (10,550,124)
------------ ------------
Beneficial Value of shares issued to Common Shareholders in reinvestment
Interest of dividends and distributions 1,010,683 880,850
Transactions ------------ ------------
(Note 4):
Net Assets: Total increase (decrease) in net assets (5,440,643) 1,723,959
Beginning of period 179,454,760 177,730,801
------------ ------------
End of period* $174,014,117 $179,454,760
============ ============
<FN>
*Undistributed investment income--net $ 1,523,047 $ 1,397,349
============ ============
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1999
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: 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.70 $ 15.59 $ 15.23 $ 15.07 $ 13.82
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .50 1.10 1.13 1.13 1.14
Realized and unrealized gain (loss)
on investments--net (.30) .34 .41 .17 1.25
-------- -------- -------- -------- --------
Total from investment operations .20 1.44 1.54 1.30 2.39
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.44) (.86) (.89) (.90) (.88)
Realized gain on investments--net (.43) (.22) (.04) -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.87) (1.08) (.93) (.90) (.88)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.05) (.19) (.24) (.24) (.26)
Realized gain on investments--net (.09) (.06) (.01) -- --
-------- -------- -------- -------- --------
Total effect of Preferred Share activity (.14) (.25) (.25) (.24) (.26)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.89 $ 15.70 $ 15.59 $ 15.23 $ 15.07
======== ======== ======== ======== ========
Market price per share, end of period $ 14.875 $ 16.00 $ 15.50 $ 14.50 $ 13.375
======== ======== ======== ======== ========
Total Investment Based on market price per share (1.69%)++ 10.66% 13.76% 15.29% 25.63%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share .29%++ 7.96% 8.93% 7.47% 16.50%
======== ======== ======== ======== ========
Ratios to Average Expenses .75%* .72% .75% .74% .77%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 4.54%* 4.90% 5.04% 5.11% 5.32%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end
Data: of period (in thousands) $119,014 $124,455 $122,731 $119,704 $118,402
======== ======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 55,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000
======== ======== ======== ======== ========
Portfolio turnover 55.52% 92.25% 107.09% 119.29% 97.93%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,164 $ 3,263 $ 3,231 $ 3,176 $ 3,153
======== ======== ======== ======== ========
Dividends Investment income--net $ 176 $ 696 $ 826 $ 869 $ 927
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.
++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund
April 30, 1999
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. The Fund's financial statements are
prepared in accordance with generally accepted accounting principles
which may require the use of management accruals and estimates.
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 written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of
options traded in the over-the-counter market, valuation is the last
asked price (options written) or the last bid price (options
purchased). Securities with remaining maturities of sixty days or
less are valued at amortized cost, which approximates market value.
Securities and assets 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.
(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.
MuniYield Florida Fund
April 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
(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, 1999 were $91,967,863 and
$94,242,106, respectively.
Net realized gains for the six months ended April 30, 1999 and net
unrealized gains as of April 30, 1999 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 2,029,374 $ 4,821,458
----------- -----------
Total $ 2,029,374 $ 4,821,458
=========== ===========
As of April 30, 1999, unrealized appreciation for Federal income tax
purposes aggregated $4,821,458, of which $5,680,630 related to
appreciated securities and $859,172 related to depreciated
securities. The aggregate cost of investments at April 30, 1999 for
Federal income tax purposes was $179,515,730.
4. Beneficial Interest 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,
1999 and the year ended October 31, 1998 increased by 65,627 and
56,492, respectively, as a result of dividend reinvestment.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of the
Fund, with a par value of $.05 per share and a liquidation
preference of $25,000 per share, 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, 1999
was 3.43%.
Shares issued and outstanding during the six months ended April 30,
1999 and the year ended October 31, 1998 remained constant.
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, 1999, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $34,426 as commissions.
5. Subsequent Event:
On May 6, 1999, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $.066353 per
share, payable on May 27, 1999 to shareholders of record as of May
21, 1999.
MuniYield Florida Fund
April 30, 1999
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Arthur Zeikel, Trustee
Vincent R. Giordano, Senior Vice President
Kenneth A. Jacob, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
Gerald M. Richard, Treasurer and Philip M. Mandel, Secretary of
MuniYield Florida Fund have recently retired. Their colleagues at
Merrill Lynch Asset Management, L.P. join the Fund's Board of
Trustees in wishing Mr. Richard and Mr. Mandel well in their
retirements.
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 Whitehall Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYF
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 1999
were as follows:
Percent of
S&P Rating/Moody's Rating Net Assets
AAA/Aaa 76.0%
AA/Aa 6.6
A/A 8.5
BBB/Baa 3.3
NR (Not Rated) 3.5
Other++ 8.0
[FN]
++Temporary investments in short-term municipal securities.
