MUNIYIELD
NEW JERSEY
FUND, INC.
FUND LOGO
Annual Report
November 30, 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. Statements and other information
herein are as dated and are subject to change.
<PAGE>
MuniYield
New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield New Jersey Fund, Inc.
TO OUR SHAREHOLDERS
For the year ended November 30, 1995, the Common Stock of MuniYield
New Jersey Fund, Inc. earned $0.894 per share income dividends,
which included earned and unpaid dividends of $0.073. This
represents a net annualized yield of 5.75%, based on a month-end net
asset value of $15.56 per share. Over the same period, total
investment return on the Fund's Common Stock was +25.85%, based on a
change in per share net asset value from $13.22 to $15.56, and
assuming reinvestment of $0.898 per share income dividends.
For the six-month period ended November 30, 1995, total investment
return on the Funds' Common Stock was +6.24%, based on a change in
per share net asset value from $15.13 to $15.56, and assuming
reinvestment of $0.444 per share income dividends.
<PAGE>
For the six months ended November 30, 1995, the average yield on the
Fund's Auction Market Preferred Stock was 3.80%.
The Municipal Market
Tax-exempt bond yields have continued to decline during the six-
month period ending November 30, 1995. As measured by the Bond Buyer
Revenue Bond Index, the yield on uninsured, long-term municipal
revenue bonds fell approximately 25 basis points (0.25%) to end the
November period at approximately 5.75%. While tax-exempt bond yields
have declined dramatically from their highs one year ago, municipal
bond yields have exhibited considerable yield volatility on a weekly
basis. In recent months, tax-exempt bond yields have fluctuated by
as much as 20 basis points (0.20%) on a week-to-week basis. US
Treasury bond yields have displayed similar volatility, but the
extent of their decline has been greater. By the end of November,
long-term US Treasury bonds declined almost 50 basis points to
6.13%. Proposed Federal tax restructuring has continued to weigh
heavily on the tax-exempt bond market. Thus far in 1995, US Treasury
bond yields have declined approximately 175 basis points. Municipal
bond yields have fallen approximately 120 basis points as the
uncertainty surrounding any changes to the existing Federal income
tax structure prevented the municipal bond market from rallying as
strongly as its taxable counterpart.
A general view of a moderately expanding domestic economy, supported
by a very favorable inflationary environment, has allowed interest
rates to significantly decline from their recent highs last
November. However, this decline has not been a smooth downward
curve. Conflicting economic indicators were released during recent
months that have prevented a clear consensus regarding the near-term
direction of interest rates from being reached. The resultant
uncertainty has promoted more of a saw-toothed pattern as interest
rate declines have been repeatedly interrupted by indications of
stronger-than-expected economic growth. As these concerns have been
overcome by subsequent weaker economic releases, interest rate
declines have resumed. These periods of volatility are likely to
continue for the remainder of 1995, or until proposed Federal budget
deficit reduction packages have been resolved and any resultant
responses by the Federal Reserve Board have occurred.
The municipal bond market's technical position, however, has
remained supportive throughout recent quarters. Approximately $42
billion in long-term municipal securities were issued during the
three-month period ended November 30, 1995. While this issuance is
slightly above underwritings during the same three-month period
ended November 30, 1994, tax-exempt bond issuance over the last 12
months has remained approximately 20% below comparable 1994 levels.
The municipal bond market should be able to maintain this positive
technical position well into 1996. Annual issuance for 1995 is now
projected to be approximately $140 billion, significantly less than
last year's already low level of $162 billion. Projected maturities
and early redemptions for the remainder of 1995 and throughout 1996
will lead to a continued decline in the total outstanding municipal
bond supply throughout 1996 and, perhaps, into 1998 should new bond
issuance remain at historically low levels.
<PAGE>
Despite the municipal bond market's relative underperformance versus
the US Treasury market thus far in 1995, the extent of the
tax-exempt bond market's rally has been nonetheless quite
impressive. Municipal bond yields have fallen approximately 160
basis points from their highs in November 1994 and municipal bond
prices have risen accordingly. Most tax-exempt products have
recouped almost all of the losses incurred in 1994 and are well on
their way to posting double-digit total returns for all of 1995.
This relative underperformance so far in 1995 provided the long-term
investor with the rare opportunity to purchase tax-exempt securities
at yield levels near those of taxable securities.
Additionally, many of the factors that have led to the relative
underperformance of the tax-exempt bond market thus far this year,
namely investor concern regarding Federal budget deficit reductions
and proposed changes in the Federal income tax structure, are
nearing resolution. The Federal budget reconciliation process has
already begun and is expected to be essentially completed by
year-end. Recent public opinion polls have suggested that the
majority of American taxpayers prefer the existing Federal income
tax system compared to proposed changes, such as flat-tax or
national sales tax. In an upcoming election year, neither party is
likely to advocate a clearly unpopular position, particularly one
that can be expected to negatively impact the Federal budget deficit
reduction program through reduced tax revenues. As these factors are
resolved, we believe that much of the resistance that the municipal
bond market has met this year should dissipate. This should allow
municipal bond yields to decline from current levels in order to
return to more normal historic yield relationships.
Portfolio Strategy
During the past 12 months, the municipal bond market has been
extremely volatile. As measured by the Bond Buyer Revenue Bond
Index, long-term tax-exempt bond yields ranged from a high of 7.18%
on December 1, 1994, to a low of 5.78% at the Fund's fiscal year-end
on November 30, 1995. After rising sharply for most of 1994,
long-term interest rates rallied significantly during 1995 as the US
economy nearly slowed to a halt. This slowdown in economic growth
initially caused the Federal Reserve Board to stop tightening its
monetary policy early in 1995. Once the magnitude of the slowdown
became apparent this past July, the Federal Reserve Board actually
decreased the Federal Funds rate by 0.25% to 5.75%.
<PAGE>
We altered the Fund's portfolio strategy during the past 12 months
as investor sentiment changed. We entered the year defensively
postured and maintained that outlook through early 1995. However, as
evidence of a stagnant economy emerged early in 1995, we began to
adopt a more constructive outlook. Our strategy then centered on
reducing cash reserves as much as possible and restructuring the
Fund's holdings to extend the average portfolio maturity and lower
the average coupon of the portfolio. This entailed selling par bonds
which have little upside potential, and buying discount coupon
bonds. These moves made the Fund more responsive to changes in
interest rates as we were still constructive on the bond market. As
a result, the Fund generated a positive total return and an
attractive current yield for its Common Stock shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
(William M. Petty)
William M. Petty
Portfolio Manager
January 3, 1996
We are pleased to announce that William M. Petty is responsible for
the day-to-day management of MuniYield New Jersey Fund, Inc . Mr.
Petty has been employed by Merrill Lynch Asset Management, L.P. (an
affiliate of the Fund's investment adviser) since 1993 as Vice
President and was Assistant Vice President from 1992 to 1993. Prior
thereto, he was employed by J. J. Kenny Municipal Bond Brokers as a
Municipal Bond Broker from 1990 to 1992.
<PAGE>
PROXY RESULTS (UNAUDITED)
During the six-month period ended November 30, 1995, MuniYield New
Jersey Fund, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on June 16, 1995. The description of each proposal and
number of shares voted are as follows:
<TABLE>
<CAPTION>
Shares Shares Voted
Voted For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Herbert I. London 8,441,073 188,855
Robert R. Martin 8,442,341 187,587
Arthur Zeikel 8,442,413 187,515
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
2. To ratify the selection of Deloitte & Touche LLP as
the Fund's independent auditors for the current year. 8,430,822 84,188 114,918
</TABLE>
During the six-month period ended November 30, 1995, MuniYield New
Jersey Fund, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a special
shareholders' meeting on June 16, 1995. The description of each
proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
Shares Shares Voted
Voted For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Herbert I. London 1,905 47
Robert R. Martin 1,905 47
Joseph L. May 1,905 47
Andre F. Perold 1,905 47
Arthur Zeikel 1,905 47
<PAGE>
</TABLE>
<TABLE>
<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 year. 1,905 47 0
</TABLE>
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 $50 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.
<PAGE>
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.
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
PCR Pollution Control Revenue Bonds
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--95.6%
<S> <S> <C> <S> <C>
Atlantic County, New Jersey, Utilities Authority, Solid Waste Revenue
Bonds:
NR* Ba $ 1,375 7% due 3/01/2008 $ 1,423
NR* Ba 2,400 7.125% due 3/01/2016 2,487
NR* A1 3,545 Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds
(Property and Equipment Program), 6% due 12/01/2012 3,670
<PAGE>
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) 2,292
AAA Aaa 1,000 Highland Park, New Jersey, School District, GO, UT, 6.55% due 2/15/2021 (b) 1,116
AAA Aaa 7,880 Hudson County, New Jersey, COP, Refunding Bonds (Correctional Facilities),
6.60% due 12/01/2021 (b) 8,580
AA A 3,200 Jersey City, New Jersey, School, GO, UT, 6.65% due 2/15/2015 3,529
NR* Aa1 5,000 Mercer County, New Jersey, Improvement Authority Revenue Bonds (County
Courthouse Project), 6.60% due 11/01/2000 (g) 5,586
Montgomery Township of New Jersey, Board of Education, UT (c):
AAA NR* 1,250 5.45% due 8/01/2019 1,254
AAA NR* 1,250 5.45% due 8/01/2020 1,248
New Jersey Building Authority, State Building Revenue Refunding Bonds:
AA- Aa 5,000 5% due 6/15/2014 4,790
AA- Aa 1,100 5% due 6/15/2019 1,033
New Jersey EDA, Natural Gas Facilities Revenue Bonds (e):
A1+ VMIG1++ 1,300 (Natural Gas Company Project), VRDN, Series B, 3.25% due 8/01/2030 (a) 1,300
AAA Aaa 5,000 Refunding (NUI Corp.), Series A, 6.35% due 10/01/2022 5,420
AAA Aaa 2,715 New Jersey EDA, Revenue Bonds (Educational Testing Service), Series B,
6.25% due 5/15/2025 (b) 2,903
AAA Aaa 2,500 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care Corporation),
6.50% due 7/01/2024 (f) 2,744
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey (continued)
<S> <S> <C> <S> <C>
NR* Aa1 $10,750 New Jersey EDA, Solid Waste Disposal Facilities Revenue Bonds (Garden
State Paper Company), AMT, 7.125% due 4/01/2022 $ 11,753
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
AAA Aaa 2,000 (JFK Health Systems Obligation Group), 5.70% due 7/01/2025 (c) 2,022
A- A 6,060 Refunding (Atlantic City Medical Center), Series C, 6.80% due 7/01/2011 6,519
AAA Aaa 2,000 Refunding (Hackensack Medical Center), 6.625% due 7/01/2011 (c) 2,194
AAA Aaa 2,000 Refunding (Jersey Shore Medical Center), 5.875% due 7/01/2024 (e) 2,048
BBB- Baa 3,875 (Saint Elizabeth Hospital), Series B, 8.25% due 7/01/2020 4,240
<PAGE>
New Jersey Sports and Exposition Authority Revenue Bonds:
NR* Aa 1,690 Refunding (Sports Complex), Series A, 5.20% due 1/01/2020 1,627
A+ Aa 7,820 (State Contract), Series A, 6.50% due 3/01/2019 8,348
A1 VMIG1++ 600 (State Contract), VRDN, Series C, 3.90% due 9/01/2024 (a)(b) 600
New Jersey State Educational Facilities Authority Revenue Bonds:
BBB+ NR* 6,500 Higher Education (Drew University), Series E, 6.25% due 7/01/2017 6,695
AAA Aaa 7,000 Higher Education (Facilities Trust Fund), Series A, 5.125% due
9/01/2009 (e) 6,989
AA+ Aa1 5,435 Higher Education (Princeton University), Series C, 6.375% due 7/01/2022 5,768
A- Baa 3,355 Higher Education (Saint Peter's College), Series B, 6.80% due 7/01/2008 3,699
A- Baa 3,600 Higher Education (Saint Peter's College), Series B, 6.85% due 7/01/2012 3,979
A- Baa1 6,030 (Stevens Institute of Technology), Series A, 6.80% due 7/01/2008 6,648
AA+ Aa1 2,105 New Jersey State, GO, AMT, 7.05% due 7/15/2015 2,449
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) 4,230
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) 2,665
AAA Aaa 2,000 New Jersey State Transportation Corporation, COP (Raymond Plaza East,
Incorporated), 6.50% due 10/01/2016 (f) 2,213
New Jersey State Transportation Trust Fund Authority Refunding Bonds
(Transportation System), Series A (b):
AAA Aaa 1,500 5.50% due 6/15/2013 1,520
AAA Aaa 3,000 5% due 6/15/2015 2,895
New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds:
A A 7,000 Series A, 6.75% due 1/01/2008 7,712
AAA Aaa 3,800 Series C, 6.50% due 1/01/2016 (b) 4,359
North Brunswick Township, New Jersey, Revenue Bonds, UT:
NR* Aa 2,405 6.50% due 5/15/2012 2,626
NR* Aa 2,710 6.50% due 5/15/2013 2,959
</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 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) $ 2,213
AAA Aaa 6,230 Passaic Valley, New Jersey, Water Commission, Water Supply Revenue Bonds,
Series A, 6.40% due 12/15/2002 (c)(g) 7,069
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 2,465 67th Series, 6.90% due 7/01/2011 2,691
AA- A1 1,000 69th Series, 7.125% due 6/01/2025 1,102
AA- A1 9,500 72nd Series, 7.35% due 10/01/2027 11,008
AA- A1 2,000 100th Series, 5.75% due 6/15/2030 2,010
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 2,472
A1+ P1 500 Union County, New Jersey, Industrial Pollution Control Financing Authority,
PCR, Refunding (Exxon Project), VRDN, AMT, 3.30% due 10/01/2024 (a) 500
AA A 3,100 University of Medicine and Dentistry, New Jersey, Revenue Bonds, Series E,
6.50% due 12/01/2018 3,376
Puerto Rico--2.9%
A- Baa1 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7% due
7/01/2001 (g) 5,748
Total Investments (Cost--$179,837)--98.5% 194,321
Other Assets Less Liabilities--1.5% 3,034
--------
Net Assets--100.0% $197,355
========
<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 November 30, 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.
Ratings of issues shown have not been audited by Deloitte & Touche
LLP.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Statement of Assets, Liabilities and Capital as of November 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$179,837,217) (Note 1a) $194,321,108
Cash 140,323
Receivables:
Interest $ 3,569,723
Securities sold 2,135,966 5,705,689
------------
Deferred organization expenses (Note 1e) 9,029
Prepaid expenses 11,045
------------
Total assets 200,187,194
------------
Liabilities: Payables:
Securities purchased 2,452,214
Dividends to shareholders (Note 1f) 255,762
Investment adviser (Note 2) 80,413 2,788,389
------------
Accrued expenses and other liabilities 44,277
------------
Total liabilities 2,832,666
------------
Net Assets: Net assets $197,354,528
============
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 123,196,293
Undistributed investment income--net 967,100
Accumulated realized capital losses on investments--net
(Note 5) (2,175,721)
Unrealized appreciation on investments--net 14,483,891
------------
Total--Equivalent to $15.56 net asset value per share of
Common Stock (market price--$13.75) 137,354,528
------------
Total capital $197,354,528
============
<FN>
*Auction Market Preferred Stock.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
November 30, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 11,634,967
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 950,364
Commission fees (Note 4) 159,861
Professional fees 77,242
Accounting services (Note 2) 48,925
Transfer agent fees 40,078
Printing and shareholder reports 33,782
Directors' fees and expenses 23,877
Listing fees 16,487
Custodian fees 15,087
Amortization of organization expenses (Note 1e) 6,337
Pricing fees 6,160
Other 11,249
------------
Total expenses 1,389,449
------------
Investment income--net 10,245,518
------------
Realized & Realized loss on investments--net (132,854)
Unrealized Change in unrealized appreciation/depreciation on investments--net 20,674,959
Gain (Loss) ------------
on Investments Net Increase in Net Assets Resulting from Operations $ 30,787,623
- --Net (Notes ============
1b, 1d & 3):
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
November 30,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 10,245,518 $ 10,182,621
Realized loss on investments--net (132,854) (2,042,858)
Change in unrealized appreciation/depreciation on investments--net 20,674,959 (21,522,883)
------------ ------------
Net increase (decrease) in net assets resulting from operations 30,787,623 (13,383,120)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (7,926,660) (8,223,319)
Shareholders Preferred Stock (2,252,160) (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 (10,178,820) (10,154,531)
------------ ------------
Capital Stock Offering and underwriting costs resulting from the issuance
Transactions 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 20,608,803 (23,468,146)
Beginning of year 176,745,725 200,213,871
------------ ------------
End of year* $197,354,528 $176,745,725
============ ============
<FN>
*Undistributed investment income--net $ 967,100 $ 900,402
============ ============
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
Period
The following per share data and ratios have been derived May 1,
from information provided in the financial statements. For the Year Ended 1992++ to
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 1.17 1.15 1.17 .62
Realized and unrealized gain (loss) on
investments--net 2.33 (2.67) 1.49 .31
-------- -------- -------- --------
Total from investment operations 3.50 (1.52) 2.66 .93
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.90) (.93) (.96) (.44)
Realized gain on investments--net -- (.01) (.01) --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.90) (.94) (.97) (.44)
-------- -------- -------- --------
Capital charge resulting from issuance of Common
Stock -- -- -- (.03)
-------- -------- -------- --------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.26) (.20) (.21) (.10)
Capital charge resulting from issuance of
Preferred Stock -- -- -- (.14)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.26) (.20) (.21) (.24)
-------- -------- -------- --------
Net asset value, end of period $ 15.56 $ 13.22 $ 15.88 $ 14.40
======== ======== ======== ========
Market price per share, end of period $ 13.75 $ 12.125 $ 15.625 $ 14.875
======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 21.26% (16.87%) 11.78% 2.19%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 25.85% (10.82%) 17.35% 4.65%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .73% .74% .69% .43%*
Net Assets:*** ======== ======== ======== ========
Expenses .73% .74% .69% .69%*
======== ======== ======== ========
Investment income--net 5.40% 5.30% 5.26% 5.51%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $137,355 $116,746 $140,214 $123,833
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000
======== ======== ======== ========
Portfolio turnover 32.79% 15.06% 5.14% 27.13%
======== ======== ======== ========
Dividends Per Investment income--net $ 938 $ 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. 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 and assets 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, 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 Directors.
(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 realized 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.
(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 Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended November 30, 1995 were $69,565,658 and
$59,152,696, respectively.
Net realized and unrealized gains (losses) as of November 30, 1995
were as follows:
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $ 624,913 $14,483,891
Short-term investments 1,836 --
Financial futures contracts (759,603) --
----------- -----------
Total $ (132,854) $14,483,891
=========== ===========
As of November 30,1995, net unrealized appreciation for Federal
income tax purposes aggregated $14,483,891, all of which related to
appreciated securities. The aggregate cost of investments at
November 30, 1995 for Federal income tax purposes was $179,837,217.
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 year ended November 30, 1995, shares issued and outstanding
remained constant at 8,829,651. At November 30, 1995, total paid-in
capital amounted to $124,079,258.
<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 November 30, 1995 was
3.80%.
A two-for-one stock split occurred on December 1, 1994. As a result,
as of November 30, 1995, there were 2,400 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends of $6,247.
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 year ended
November 30, 1995, MLPF&S, an affiliate of FAM, earned $105,845 as
commissions.
5. Capital Loss Carryforward:
At November 30, 1995, the Fund had a capital loss carryforward of
approximately $1,344,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
6. Subsequent Event:
On December 11, 1995, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $0.072552 per share, payable on December 28, 1995 to shareholders
of record as of December 22, 1995.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders of
MuniYield New Jersey Fund, Inc.:
We have audited the accompanying statement of assets, liabilities
and capital, including the schedule of investments, of MuniYield New
Jersey Fund, Inc. as of November 30, 1995, the related statements of
operations for the year then ended, the changes in net assets for
each of the years in the two-year period then ended and the
financial highlights for each of the years in the three-year period
then ended and the period May 1, 1992 (commencement of operations)
to November 30, 1992. These financial statements and the financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
<PAGE>
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at November
30, 1995 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
MuniYield New Jersey Fund, Inc. as of November 30, 1995, the results
of its operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
January 5, 1996
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniYield New Jersey Fund, Inc. during its taxable year ended
November 30, 1995 qualify as tax-exempt interest dividends for
Federal income tax purposes. Additionally, there were no capital
gains distributions paid by the Fund during the year.
Please retain this information for your records.
PER SHARE INFORMATION (UNAUDITED)
<PAGE>
<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>
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 .23 .07 --
June 1, 1995 to August 31, 1995 .29 .03 (.19) .22 .07 --
September 1, 1995 to November 30, 1995 .29 .05 .54 .22 .06 --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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
June 1, 1995 to August 31, 1995 15.39 14.67 13.75 13.00 651
September 1, 1995 to November 30, 1995 15.56 14.89 13.875 13.125 770
<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
James H. Bodurtha, 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
<PAGE>
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
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
