MUNIYIELD
NEW JERSEY
FUND, INC.
FUND LOGO
Semi-Annual Report
May 31, 1995
This report, including the financial information herein, is
transmitted to the shareholders of MuniYield New Jersey Fund, Inc.
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 Stock by issuing Preferred Stock to provide the Common Stock
shareholders with a potentially higher rate of return. Leverage
creates risks for Common Stock shareholders, including the
likelihood of greater volatility of net asset value and market price
of shares of the Common Stock, and the risk that fluctuations in the
short-term dividend rates of the Preferred Stock may affect the
yield to Common Stock shareholders.
<PAGE>
MuniYield
New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield New Jersey Fund, Inc.
TO OUR SHAREHOLDERS
For the six-month period ended May 31, 1995, the Common Stock of
MuniYield New Jersey Fund, Inc. earned $0.452 per share income
dividends, which included earned and unpaid dividends of $0.074.
This represents a net annualized yield of 5.99%, based on a per
share net asset value of $15.13 as of May 31, 1995. Over the same
period, the total investment return on the Fund's Common Stock was
+18.46%, based on a change in per share net asset value from $13.22
to $15.13, and assuming reinvestment of $0.454 per share income
dividends.
For the six months ended May 31, 1995, the average yield of the
Fund's Auction Market Preferred Stock was 3.70%.
The Environment
Increasing signs of slowing economic growth improved the investment
outlook during the six months ended May 31, 1995. Recent declines in
indicators such as new home sales and durable goods orders were
reflected in the slight downward revision in first-quarter gross
domestic product growth to 2.7% from 2.8%, a level appreciably lower
than the final quarter of 1994. At the same time, inventories of
unsold goods grew at a slower rate than previously estimated, while
consumer, residential construction and capital goods spending were
revised upward. As a result, it appears that the economy is losing
enough momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
Despite some periods of strengthening, the US dollar has been
persistently weak relative to the yen and the Deutschemark. Large
trade deficits and exports of capital from the United States have
kept the US currency in a decade-long decline relative to the
Japanese and German currencies. Over the longer term, since the
United States has the highest productivity among industrialized
nations and among the lowest labor costs, demand for US dollar-
denominated assets may improve. However, a reduction of the still-
widening US trade deficit may be necessary before the US dollar
appreciates substantially relative to the yen and the Deutschemark.
Another important factor that will continue to influence currency
markets is the increasing possibility of US/Japanese trade
sanctions. Thus far in 1995, economic developments have been very
positive for the US stock and bond markets. Continued signs of a
moderating expansion and well contained inflationary pressures would
provide further assurance that the peak in interest rates is behind
us, creating a stronger foundation for higher stock and bond prices.
On the other hand, indications of reaccelerating growth and
increasing inflationary pressures would be negative developments for
the US financial markets.
<PAGE>
The Municipal Market
Throughout the six months ended May 31, 1995, the tax-exempt bond
market staged an impressive rally. Signs of a weakening economy and
ongoing moderate inflationary pressures have fostered an environment
of declining interest rates. As measured by the Bond Buyer Revenue
Bond Index, yields of A-rated, uninsured municipal revenue bonds
have fallen 130 basis points (1.30%) to 6.02%. Tax-exempt bond
prices have regained all of their losses incurred in late 1994 and
are now higher than they were a year ago. Over the same period, US
Treasury bond yields have exhibited similar improvement, falling 135
basis points to 6.65%.
Throughout the past months, the municipal bond market was supported
by a very strong technical position. Over the six-month period ended
May 31, 1995, less than $60 billion in long-term tax-exempt
securities were underwritten. This represents a decline of over 40%
versus the comparable period a year earlier. Over the year ended May
31, 1995, approximately $137 billion in municipal securities were
issued, representing a 45% decline in issuance versus the prior
year's level. Both January and February 1995 monthly issuance were
less than $8 billion, which represents the lowest monthly issuance
levels since January 1988. Some analysts have already lowered their
estimates for 1995 annual issuance from the $150 range to the $120
billion range. This would represent a further 20% reduction in an
already historically low issuance environment.
At the same time, investors have experienced dramatic cash inflows
from tax exempt bond maturities, coupon payments and proceeds from
early bond redemptions. It was estimated that municipal investors
received over $20 billion in January 1995. Investors are expected to
receive an additional $80 million in similar proceeds during June
and July. Given these inflows, investors should find it increasingly
difficult to replace existing holdings as they mature and to
reinvest coupon income.
Despite the recent rise in tax-exempt bond prices, municipal bonds
remain attractive relative to other investment alternatives, both on
an after-tax basis and as a percentage of US Treasury bond yields.
For example, a tax-exempt bond presently yielding 5.80% represents
an after-tax equivalent of over 9.50% to an investor in the 39.6%
Federal income tax bracket. Additionally, municipal bonds currently
yield 85%--90% of comparable US Treasury securities. Analysts
usually consider municipal bonds yielding in excess of 82% of US
Treasury securities to be historically attractive. In the present
strong technical environment, many investors are likely to view the
current situation as an opportunity to purchase very attractively
priced tax-exempt products, causing municipal bond yields to quickly
return to their more historic relationship.
<PAGE>
Portfolio Strategy
MuniYield New Jersey Fund, Inc. entered the six-month period ended
May 31, 1995 defensively postured in light of the extreme volatility
that plagued the fixed-income markets during most of 1994. Since
early 1995, however, we have become more positive on the markets'
prospects for several reasons. First, we saw signs of an apparent
economic slowdown in the United States just as inflationary
pressures were reaching critical levels, thus reducing concern among
fixed-income investors. At the same time, municipal issuance
continued to plunge, exacerbating an already troublesome situation
and propelling municipals to significantly higher price levels
during the period. In fact, for the six months ended May 31, 1995,
New Jersey tax-exempt issuance declined by about 72% versus the same
period of the prior year.
We initially reacted to the changing environment by taking cash
reserves down from approximately 10% of net assets in December to
nearly zero by early 1995 and then maintaining a fully invested
posture for the balance of the period. We restructured the portfolio
during this time to seek to give the Fund a more aggressive stance
in the marketplace. This was accomplished by selectively selling par
bonds with limited room for price appreciation and replacing them
with discount coupon bonds. As credit quality is always a priority,
fully 91% of the holdings in the Fund were rated A or better by at
least one of the major rating agencies.
We appreciate your ongoing interest in MuniYield New Jersey Fund,
Inc., 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
Vice President and Portfolio Manager
June 21, 1995
<PAGE>
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield New Jersey Fund, Inc. utilizes leveraging to seek to
enhance the yield and net asset value of its Common Stock. However,
these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Stock, which
pays 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 Stock 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 Stock.
However, in order to benefit Common Stock 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
Stock 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 Stock
capitalization of $100 million and the issuance of Preferred Stock
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 $60 million
of Preferred Stock 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 Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pick-up on the
Common Stock will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Stock (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
Stock's net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Stock does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Stock may
also decline.
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield New Jersey Fund, Inc.'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)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
M/F Multi-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey--97.9%
<S> <S> <C> <S> <C>
Atlantic County, New Jersey, Utilities Authority, Solid Waste Revenue Bonds:
NR* Ba $ 1,375 7% due 3/01/2008 $ 1,382
NR* Ba 2,400 7.125% due 3/01/2016 2,380
NR* A1 3,545 Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds (Property
and Equipment Program), 6% due 12/01/2012 3,622
AAA Aaa 2,000 Cape May County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds (Atlantic City Electric Company Project), AMT, Series A, 7.20% due
11/01/2029 (b) 2,302
AAA Aaa 3,145 Delaware River Joint Toll Bridge Commission, Revenue Refunding Bonds (Pennsylvania
Bridge), 6.25% due 7/01/2012 (c) 3,293
AAA Aaa 1,000 Highland Park, New Jersey, School District, GO, UT, 6.55% due 2/15/2021 (b) 1,087
<PAGE>
AAA Aaa 7,880 Hudson County, New Jersey, COP, Refunding Bonds (Correctional Facilities),
6.60% due 12/01/2021 (b) 8,440
AA A 3,200 Jersey City, New Jersey, School, GO, UT, 6.65% due 2/15/2015 3,417
Mercer County, New Jersey, Improvement Authority Revenue Bonds:
NR* Aa1 5,000 (County Courthouse Project), 6.60% due 11/01/2000 (g) 5,545
AAA Aaa 5,000 Refunding (Solid Waste Project), AMT, Series A, 6.70% due 4/01/2013 (c) 5,293
NR* Ba 1,550 Refunding (Solid Waste Project), AMT, Series B, 6.80% due 4/01/2005 1,518
New Jersey Building Authority, State Building Revenue Refunding Bonds:
AAA Aaa 2,500 5% due 6/15/2010 (b) 2,395
AA- Aa 5,000 5% due 6/15/2014 4,629
AA- Aa 1,200 5% due 6/15/2019 1,089
AAA Aaa 5,000 New Jersey EDA, Natural Gas Facilities, Revenue Refunding Bonds (NUI Corp.),
Series A, 6.35% due 10/01/2022 (e) 5,272
NR* Aaa 1,300 New Jersey EDA, Revenue Bonds (Hoffman-La Roche Incorporated Project), VRDN,
AMT, 4.25% due 11/01/2011 (a) 1,300
AAA Aaa 2,500 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care Corporation), 6.50%
due 7/01/2024 (f) 2,679
NR* Aa1 10,750 New Jersey EDA, Solid Waste Disposal Facilities Revenue Bonds (Garden State
Paper Company), AMT, 7.125% due 4/01/2022 11,606
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
AAA Aaa 3,000 (JFK Health Systems Obligation Group), 5.70% due 7/01/2025 (c) 2,962
A- A 6,060 Refunding (Atlantic City Medical Center), Series C, 6.80% due 7/01/2011 6,369
AAA Aaa 2,000 Refunding (Hackensack Medical Center), 6.625% due 7/01/2011 (c) 2,149
BBB- Baa 3,875 (Saint Elizabeth Hospital), Series B, 8.25% due 7/01/2020 4,196
New Jersey Sports and Exposition Authority Revenue Bonds, Series A:
NR* Aa 1,690 Refunding (Sports Complex), 5.20% due 1/01/2020 1,573
A+ Aa 7,820 (State Contract), 6.50% due 3/01/2019 8,301
A+ Aa 1,840 (State Contract), 6% due 3/01/2021 1,861
AA+ Aa1 2,105 New Jersey State, GO, AMT, 7.05% due 7/15/2015 2,360
New Jersey State Educational Facilities Authority Revenue Bonds:
A- NR* 7,500 Higher Education (Drew University), Series E, 6.25% due 7/01/2017 7,677
AA+ Aa1 5,435 Higher Education (Princeton University), Series C, 6.375% due 7/01/2022 5,704
A- Baa 3,355 Higher Education (Saint Peter's College), Series B, 6.80% due 7/01/2008 3,645
A- Baa 3,600 Higher Education (Saint Peter's College), Series B, 6.85% due 7/01/2012 3,874
A- Baa1 6,030 (Stevens Institute of Technology), Series A, 6.80% due 7/01/2008 6,552
AAA Aaa 4,000 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds,
AMT, Series M, 7% due 10/01/2026 (b) 4,308
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey (concluded)
<S> <S> <C> <S> <C>
AAA NR* $ 2,520 New Jersey State Housing and Mortgage Finance Agency, M/F Housing Revenue
Refunding Bonds (Presidential Plaza), 7% due 5/01/2030 (d) $ 2,651
AAA Aaa 2,000 New Jersey State Transportation Corporation, COP (Raymond Plaza East,
Incorporated), 6.50% due 10/01/2016 (f) 2,188
New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds:
A A 7,000 Series A, 6.75% due 1/01/2008 7,621
A A 2,500 Series C, 6.50% due 1/01/2016 2,737
AAA Aaa 1,000 Series C, 6.50% due 1/01/2016 (b) 1,112
AAA VMIG1++ 2,600 VRDN, Series D, 3.25% due 1/01/2018 (a)(c) 2,600
AA Aa 2,485 New Jersey Wastewater Treatment Trust, Loan Revenue Bonds, Series A, 6% due
7/01/2011 2,555
North Brunswick Township, New Jersey, Revenue Bonds, UT:
NR* Aa 2,405 6.50% due 5/15/2012 2,571
NR* Aa 2,710 6.50% due 5/15/2013 2,889
AAA Aaa 2,010 North Jersey District Water Supply, New Jersey, Community Revenue Refunding
Bonds (Wanaque North Project), Series B, 6.50% due 11/15/2011 (b) 2,171
AAA Aaa 6,230 Passaic Valley, New Jersey, Water Commission, Water Supply Revenue Bonds,
Series A, 6.40% due 12/15/2002 (c)(g) 6,984
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 2,465 67th Series, 6.90% due 7/01/2011 2,639
AA- A1 1,000 69th Series, 7.125% due 6/01/2025 1,089
AA- A1 9,500 72nd Series, 7.35% due 10/01/2027 10,766
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligation), VRDN (a):
A1+ VMIG1++ 3,200 Series 1, 4.05% due 8/01/2028 3,200
A1+ VMIG1++ 1,200 Series 2, 3.95% due 5/01/2019 1,200
AA A1 2,275 Rutgers State University, New Jersey, Revenue Refunding Bonds (State University
of New Jersey), Series A, 6.50% due 5/01/2018 2,427
AA A 3,100 University of Medicine and Dentistry, New Jersey, Revenue Bonds, Series E,
6.50% due 12/01/2018 3,297
<PAGE>
Puerto Rico--2.8%
A- Baa1 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7% due
7/01/2021 5,501
Total Investments (Cost--$183,550)--100.7% 194,978
Liabilities in Excess of Other Assets--(0.7%) (1,429)
--------
Net Assets--100.0% $193,549
========
<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 May 31, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
(d)FHA Insured.
(e)AMBAC Insured.
(f)FSA Insured.
(g)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of May 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$183,550,030) (Note 1a) $194,977,655
Cash 85,251
Interest receivable 3,694,411
Deferred organization expenses (Note 1e) 15,366
Prepaid expenses 37,598
------------
Total assets 198,810,281
------------
<PAGE>
Liabilities: Payables:
Securities purchased $ 4,808,137
Dividends to shareholders (Note 1f) 309,286
Investment adviser (Note 2) 86,339 5,203,762
------------
Accrued expenses 57,976
------------
Total liabilities 5,261,738
------------
Net Assets: Net assets $193,548,543
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (2,400 shares of
AMPS* issued and outstanding at $25,000 per share liquidation
preference) $ 60,000,000
Common Stock, par value $.10 per share (8,829,651 shares
issued and outstanding) $ 882,965
Paid-in capital in excess of par 123,196,294
Undistributed investment income--net 931,637
Accumulated realized capital losses on investments--net (Note 5) (2,889,978)
Unrealized appreciation on investments--net 11,427,625
------------
Total--Equivalent to $15.13 net asset value per share of
Common Stock (market price--$13.25) 133,548,543
------------
Total capital $193,548,543
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended May 31, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,838,434
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 466,184
Commission fees (Note 4) 81,187
Professional fees 39,135
Transfer agent fees 21,868
Accounting services (Note 2) 20,519
Printing and shareholder reports 17,695
Directors' fees and expenses 11,549
Listing fees 8,399
Custodian fees 7,522
Amortization of organization expenses (Note 1e) 3,228
<PAGE> Pricing fees 3,065
Other 9,848
------------
Total expenses 690,199
------------
Investment income--net 5,148,235
------------
Realized & Realized loss on investments--net (847,110)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 17,618,693
(Loss) on ------------
Investments Net Increase in Net Assets Resulting from Operations $ 21,919,818
- --Net (Notes ============
1b, 1d & 3):
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
May 31, November 30,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 5,148,235 $ 10,182,621
Realized loss on investments--net (847,110) (2,042,858)
Change in unrealized appreciation/depreciation on invest-
ments--net 17,618,693 (21,522,883)
------------ ------------
Net increase (decrease) in net assets resulting from operations 21,919,818 (13,383,120)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (4,007,408) (8,223,319)
Shareholders Preferred Stock (1,109,592) (1,777,656)
(Note 1f): Realized gain on investments--net:
Common Stock -- (127,660)
Preferred Stock -- (25,896)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (5,117,000) (10,154,531)
------------ ------------
<PAGE>
Capital Stock Offering and underwriting costs resulting from the
Transactions issuance of Common Stock -- 48,307
(Notes 1e & 4): Offering and underwriting costs resulting from the
issuance of Preferred Stock -- 21,198
------------ ------------
Net increase in net assets derived from capital stock
transactions -- 69,505
------------ ------------
Net Assets: Total increase (decrease) in net assets 16,802,818 (23,468,146)
Beginning of period 176,745,725 200,213,871
------------ ------------
End of period* $193,548,543 $176,745,725
============ ============
<FN>
*Undistributed investment income--net $ 931,637 $ 900,402
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months For the May 1,
from information provided in the financial statements. Ended Year Ended 1992++ to
May 31, November 30, Nov. 30,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.22 $ 15.88 $ 14.40 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .59 1.15 1.17 .62
Realized and unrealized gain (loss) on invest-
ments--net 1.90 (2.67) 1.49 .31
-------- -------- -------- --------
Total from investment operations 2.49 (1.52) 2.66 .93
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.45) (.93) (.96) (.44)
Realized gain on investments--net -- (.01) (.01) --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.45) (.94) (.97) (.44)
-------- -------- -------- --------
Capital charge resulting from issuance of
Common Stock -- -- -- (.03)
<PAGE> -------- -------- -------- --------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.13) (.20) (.21) (.10)
Capital charge resulting from issuance of
Preferred Stock -- -- -- (.14)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.13) (.20) (.21) (.24)
-------- -------- -------- --------
Net asset value, end of period $ 15.13 $ 13.22 $ 15.88 $ 14.40
======== ======== ======== ========
Market price per share, end of period $ 13.25 $ 12.125 $ 15.625 $ 14.875
======== ======== ======== ========
Total Investment Based on market price per share 13.11%+++ (16.87%) 11.78% 2.19%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 18.46%+++ (10.82%) 17.35% 4.65%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .74%* .74% .69% .43%*
Net Assets:*** ======== ======== ======== ========
Expenses .74%* .74% .69% .69%*
======== ======== ======== ========
Investment income--net 5.54%* 5.30% 5.26% 5.51%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $133,549 $116,746 $140,214 $123,833
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000
======== ======== ======== ========
Portfolio turnover 17.27% 15.06% 5.14% 27.13%
======== ======== ======== ========
Dividends Per Investment income--net $ 462 $ 741 $ 774 $ 341
Share on
Preferred Stock
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 Stock
shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on July 1, 1992.
++++++Dividends have been adjusted to reflect a two-for-one stock
split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New Jersey Fund, Inc. (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 Stock on a weekly basis. The Fund's Common
Stock is listed on the New York Stock Exchange under the symbol MYJ.
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 fair value as
determined in good faith by or under the direction of the Board of
Directors of the Fund.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Fund as unrealized
gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.
<PAGE>
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses and offering expenses--Deferred
organization expenses are amortized on a straight-line basis over a
five-year period. Direct expenses relating to the public offering of
the Common and Preferred Stock were charged to capital at the time
of issuance of the stock.
NOTES TO FINANCIAL STATEMENTS (concluded)
(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.
<PAGE>
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 directors of the Fund are officers and/or
directors of FAM, PSI, Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended May 31, 1995 were $39,317,484 and
$30,414,556, respectively.
Net realized and unrealized gains (losses) as of May 31, 1995 were
as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ (89,343) $11,427,625
Short-term investments 1,836 --
Financial futures contracts (759,603) --
------------ -----------
Total $ (847,110) $11,427,625
============ ===========
As of May 31, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $11,427,625, of which $11,531,681 related to
appreciated securities and $104,056 related to depreciated
securities. The aggregate cost of May 31, 1995 for Federal income
tax purposes was $183,550,030.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of holders of Common Stock.
Common Stock
For the six months ended May 31, 1995, shares issued and outstanding
remained constant at 8,829,651. At May 31, 1995, total paid-in
capital amounted to $124,079,259.
<PAGE>
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock 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 May 31, 1995 was 4.04%.
A two-for-one stock split occurred on December 1, 1994. As a result
at May 31, 1995, there were 2,400 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
May 31, 1995, MLPF&S, an affiliate of FAM, earned $50,168 as
commissions.
5. Capital Loss Carryforward:
At November 30, 1994, the Fund had a capital loss carryforward of
approximately $2,043,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
6. Subsequent Event:
On June 12, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.074162 per share, payable on June 29, 1995 to shareholders of
record as of June 23, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Dividends/Distributions
Net Realized Unrealized
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common
<S> <C> <C> <C> <C> <C> <C>
June 1, 1993 to August 31, 1993 $.31 $ .01 $ .66 $.24 $.05 --
September 1, 1993 to November 30, 1993 .29 .02 (.27) .25 .05 --
December 1, 1993 to February 28, 1994 .29 -- (.12) .24 .05 $.01
March 1, 1994 to May 31, 1994 .30 (.03) (1.02) .23 .05 --
June 1, 1994 to August 31, 1994 .28 -- .12 .23 .05 --
September 1, 1994 to November 30, 1994 .28 (.20) (1.42) .23 .05 --
December 1, 1994 to February 28, 1995 .29 (.12) 1.49 .23 .06 --
March 1, 1995 to May 31, 1995 .30 .03 .50 .22 .07 --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
June 1, 1993 to August 31, 1993 $16.13 $15.50 $16.25 $15.125 634
September 1, 1993 to November 30, 1993 16.56 15.80 16.375 15.00 714
December 1, 1993 to February 28, 1994 16.39 15.71 16.50 14.50 701
March 1, 1994 to May 31, 1994 15.56 14.08 15.375 13.00 677
June 1, 1994 to August 31, 1994 15.15 14.43 14.125 12.875 747
September 1, 1994 to November 30, 1994 14.87 12.86 13.25 10.50 1,573
December 1, 1994 to February 28, 1995 14.59 13.29 13.375 11.50 1,271
March 1, 1995 to May 31, 1995 15.13 14.40 13.625 12.75 756
<FN>
*Calculations are based upon shares of Common Stock outstanding at
the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
<PAGE>
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MYJ
