MUNIYIELD
NEW JERSEY
Fund, INC.
STRATEGIC
Performance
[GRAPHIC OMITTED]
Annual Report
November 30, 1998
<PAGE>
MuniYield New Jersey Fund, Inc.
TO OUR SHAREHOLDERS
For the year ended November 30, 1998, the Common Stock of MuniYield New Jersey
Fund, Inc. earned $0.897 per share income dividends, which included earned and
unpaid dividends of $0.083. This represents a net annualized yield of 5.63%,
based on a month-end per share net asset value of $15.93. Over the same period,
the total investment return on the Fund's Common Stock was +8.68%, based on a
change in per share net asset value from $15.51 to $15.93, and assuming
reinvestment of $0.887 per share income dividends.
For the six-month period ended November 30, 1998, the total investment return on
the Fund's Common Stock was +4.58%, based on a change in per share net asset
value from $15.67 to $15.93, and assuming reinvestment of $0.450 per share
income dividends.
For the six-month period ended November 30, 1998, the Fund's Auction Market
Preferred Stock had an average yield of 3.70%.
The Municipal Market Environment
During the six months ended November 30, 1998, long-term bond yields declined
significantly. The near absence of any inflationary pressures in the United
States continued to support historic low interest rates. Additionally, foreign
economic factors have continued to outweigh US domestic fundamentals, as they
have for much of 1998. The economic crisis that began in Asia over a year ago
has spread both to Russia and South America. However, economic factors in these
countries have begun to negatively impact US growth. For example, employment in
the US manufacturing sector declined in recent months as a result of reduced
demand for export goods. Concern that the modest decline in US economic growth
seen thus far would spread and intensify led the Federal Reserve Board to lower
short-term interest rates in late September, in mid-October and in mid-November.
These actions were taken to offset the drag of foreign economies on future US
growth.
US Treasury bond yields continued to benefit from a strong "flight to quality"
as foreign investors were drawn to the relative safe haven of US Government
securities. Additionally, the sharp equity market correction, which began at the
end of August, triggered a further flight into US Treasury securities. Long-term
US Treasury bond yields fell over 75 basis points (0.75%) to approximately 5% by
the end of November.
By early October, worldwide investor confidence began to rise, reducing the
demand for the safety and liquidity of US Treasury securities. Investor
confidence was restored by the belief that major world governments, as well as
the International Monetary Fund, would take the necessary action to support weak
domestic economies in Asia and Latin America. Additionally, rapid recovery in US
and world equity markets caused some investors to reallocate funds from US debt
investments back to various world equity markets. US Treasury security yields
rose through mid-November to approximately 5.375%. However, the resumption of
the decline in foreign financial markets, particularly in Asia, as well as
renewed concerns of additional US economic weakness, led to a further lowering
of short-term interest rates by the Federal Reserve Board in mid-November. These
factors pushed taxable interest rates lower for the remainder of the period to
end November at 5.07%. During the six-month period ended November 30, 1998,
long-term US Treasury bond yields declined approximately 70 basis points.
During much of the past 12 months, the tax-exempt bond market has contended with
significant new-issue supply pressures. Over the past year, more than $277
billion in new long-term tax-exempt bonds were underwritten, an increase of
almost 30% compared to the same period a year ago. During the most recent
six-month period, approximately $140 billion in new long-term municipal bonds
were underwritten, representing an increase of nearly 10% compared to the same
six-month period last year. This increased
1
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MuniYield New Jersey Fund, Inc. November 30, 1998
supply, coupled with the high returns the US equity market generated for much of
1998, was one of the major reasons municipal bond yields declined less than
their taxable counterparts during the period.
The continued increase in new bond issuance has required ever-lower tax-exempt
bond yields to generate the economic savings necessary for additional municipal
bond financings. Consequently, the pace of new bond issuance has slowed in
recent months. In fact, the trend may be reversing. During the three months
ended November 30, 1998, just under $60 billion in new long-term municipal bonds
were underwritten, a decline of 10% compared to the same quarter a year ago.
During the month of November, there were less than $20 billion in new municipal
bond securities issued, a decline of over 8% compared to November 1997. We will
monitor this trend closely in the coming months to determine if the supply
pressures exerted thus far in 1998 are abating and fostering a more balanced
supply/demand environment.
Throughout the six-month period ended November 30, 1998, municipal bond yields
followed a pattern that was similar to US Treasury securities, although the
yield declines were more muted. As measured by the Bond Buyer Revenue Bond
Index, long-term, uninsured tax-exempt revenue bond yields declined
approximately 30 basis points to 5.09% by early October. Municipal bond yields
then rose during the remainder of October and November and ended the period at
5.25%. Over the past six months, long-term tax-exempt bond yields declined
approximately 15 basis points.
Although municipal bond yields declined during the six-month period, recent
supply pressures and the absence of the safe-haven status enjoyed by US Treasury
bonds caused municipal bond yields to rise relative to US Treasury bond yields.
At November 30, 1998, long-term tax-exempt bond yields were attractive relative
to US Treasury securities of comparable maturities (over 100%), well in excess
of their expected range of 85%-88%. Tax-exempt bond yield ratios have rarely
exceeded 90% in the 1980s and 1990s. Historically, yield spreads have been wider
than these levels when there have been potential changes in Federal tax codes
that would have adversely affected the tax-favored status of municipal bonds.
Currently, municipal bond investors find themselves in a unique investment
environment. Previous opportunities to purchase tax-exempt bonds with yields
exceeding that of comparable US Treasury issues have been limited to relatively
brief episodes and then further limited to a few municipal credits undergoing
specific financial pressures. However, the current opportunity may quickly
disappear should tax-exempt bond supply pressures diminish or the safe-haven
status of US Treasury securities become less desirable. Under these conditions,
municipal bond ratios should quickly revert to more normal historic percentages,
certainly well below their presently attractive levels.
Portfolio Strategy
As a result of our efforts to move from a neutral to a more constructive market
strategy, the Fund generated a competitive return for the six months ended
November 30, 1998. The shift in our outlook evolved early in the period as the
prospect of escalating global economic and financial market turmoil set the
stage for sharply lower interest rates.
Much of the activity reflecting this shift centered around a reduction in the
Fund's exposure to bonds possessing minimal call protection. Most of these
securities were issued in a higher interest rate environment and, consequently,
we sold them at substantial premiums to face value. We invested the proceeds
from these sales in high-quality issues that are well protected from early
redemption and are likely to perform well as interest rates decline. As a result
of these restructuring efforts, we believe that the Fund is better positioned to
withstand the likely onslaught of municipal bond redemptions as issuers reap the
benefits of refinancing outstanding debt. We believe that this active approach
to managing the Fund's average call protection is likely to provide a more
stable dividend over time.
Nevertheless, the technical constraints of the New Jersey municipal market
hampered our ability to carry out our restructuring strategy in a timely manner.
While new-issue volume across the country rose almost 10% during the six-month
period as compared to levels for the same period a year ago, there was a 25%
decline in a similar measure of New Jersey issuance. Furthermore, investor
demand accelerated, thereby increasing competition for an already shrinking
supply of bonds.
Leverage continues to benefit the Fund's Common Stock shareholders, as the
Fund's cost of borrowing, as reflected by short-term tax-exempt interest rates,
remains well below the yields available on long-term
2
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
municipal bonds. In fact, borrowing costs actually declined with the general
move toward lower short-term interest rates brought on by the recent shift
toward easier monetary policy. However, should the spread between short-term and
long-term interest rates narrow, the benefits of leverage will decline, and as a
result reduce the yield to the Fund's Common Stock. (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 New Jersey Fund, Inc., and we
look forward to serving your investment needs in the months and years ahead.
Sincerely,
/s/ Arthur Zeikel
Arthur Zeikel
President
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Theodore R. Jaeckel Jr.
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
January 4, 1999
PROXY RESULTS
During the six-month period ended November 30, 1998, MuniYield New Jersey Fund,
Inc. Common Stock shareholders voted on the following proposals. The proposals
were approved at a shareholders' meeting on September 24, 1998. The description
of each proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To elect the Fund's Board of Directors: James H. Bodurtha 8,411,885 147,924
Herbert I. London 8,416,023 143,786
Robert R. Martin 8,414,353 145,456
Arthur Zeikel 8,406,527 153,282
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Shares Voted Shares Voted Shares 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. 8,364,515 71,606 123,688
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
During the six-month period ended November 30, 1998, MuniYield New Jersey Fund,
Inc. Preferred Stock shareholders voted on the following proposals. The
proposals were approved at a shareholders' meeting on September 24, 1998. The
description of each proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To elect the Fund's Board of Directors: James H. Bodurtha 2,318 7
Herbert I. London 2,318 7
Robert R. Martin 2,318 7
Joseph L. May 2,318 7
Andre F. Perold 2,318 7
Arthur Zeikel 2,318 7
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Shares Voted Shares Voted Shares 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. 2,323 2 0
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
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 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 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.
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 pickup 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.
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.
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 below and at right.
ACES(SM) Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
UT Unlimited Tax
VRDN Variable Rate Demand Notes
4
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey--98.4%
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AA A1 $ 2,000 Bernards Township, New Jersey, School District, GO, UT, 5.30% due 1/01/2019 $ 2,052
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,100 Camden County, New Jersey, Municipal Utilities Authority, Sewer Revenue
Refunding Bonds, County Agreement, 5.25% due 7/15/2017 (b) 1,140
- -----------------------------------------------------------------------------------------------------------------------------------
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 (d) 2,314
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 Casino Reinvestment Development Authority, New Jersey, Parking Fee Revenue Bonds,
Series A, 5.25% due 10/01/2015 (c) 2,587
- -----------------------------------------------------------------------------------------------------------------------------------
East Orange, New Jersey, Board of Education, COP, Capital Appreciation (c):
AAA Aaa 1,420 5.30%** due 8/01/2016 602
AAA Aaa 1,000 5.34%** due 2/01/2019 369
AAA Aaa 2,845 5.202%** due 8/01/2026 712
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 750 Essex County, New Jersey, Improvement Authority, Parking Facility Revenue Refunding
Bonds, 5% due 10/01/2022 (a) 754
- -----------------------------------------------------------------------------------------------------------------------------------
AA Aa2 1,000 Gloucester County, New Jersey, Industrial Pollution Control Financing Authority, Revenue
Refunding Bonds (Mobil Oil Refining Corp. Project), 5.625% due 12/01/2028 1,047
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,880 Hudson County, New Jersey, COP, Refunding (Correctional Facilities), 6.60%
due 12/01/2021 (d) 5,321
- -----------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 5,000 Hudson County, New Jersey, Improvement Authority, Facility Lease Revenue Bonds,
Residual Certificates, RIB, Series 34, 6.965% due 10/01/2024 (b)(e) 5,431
- -----------------------------------------------------------------------------------------------------------------------------------
AA Aa3 3,200 Jersey City, New Jersey, School, GO, UT, 6.65% due 2/15/2002 (g) 3,537
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,825 Lacey Municipal Utilities Authority, New Jersey, Water Revenue Refunding Bonds,
5.20% due 12/01/2024 (d) 2,892
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,120 Metuchen, New Jersey, School District, GO, UT, 5.20% due 9/15/2022 (b) 1,143
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,750 Middlesex County, New Jersey, COP, 4.85% due 6/15/2028 (d) 1,734
- -----------------------------------------------------------------------------------------------------------------------------------
NR* VMIG1+ 100 Monmouth County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), ACES, 2.65% due 8/01/2016 (f) 100
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,710 North Jersey District Water Supply Revenue Refunding Bonds (Wanaque North Project),
Series B, 6.50% due 11/15/2011 (d) 1,863
- -----------------------------------------------------------------------------------------------------------------------------------
BBB- NR* 2,000 New Jersey EDA, Economic Development Revenue Refunding Bonds (United
Methodist Homes), 5.125% due 7/01/2018 1,922
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Refunding Bonds, Series A:
A NR* 1,000 (Cadbury Corp Project), 5.50% due 7/01/2018 1,018
BBB- NR* 1,250 (Fellowship Village), 5.50% due 1/01/2018 1,225
BBB- NR* 3,000 (Fellowship Village), 5.50% due 1/01/2025 2,931
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI Corporation),
Series A, 6.35% due 10/01/2022 (a) 5,616
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds, Capital Appreciation (Saint Barnabas Project) (d):
NR* Aaa 4,000 5.55%** due 7/01/2017 1,609
NR* Aaa 5,435 5.47%** due 7/01/2018 2,070
NR* Aaa 6,000 5.19%** due 7/01/2019 2,166
NR* Aaa 1,000 Series A, 5.18%** due 7/01/2023 293
NR* Aaa 4,350 Series A, 5.23%** due 7/01/2025 1,150
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Refunding Bonds:
NR* NR* 2,000 (Educational Testing Service), Series A, 4.75% due 5/15/2018 (d) 1,965
AAA Aaa 2,500 (RJW Health Care Corporation), 6.50% due 7/01/2024 (c) 2,810
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <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 $ 11,853
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue Bonds (b):
AAA Aaa 2,000 (American Water Company Inc. Project), AMT, 6% due 5/01/2036 2,184
AAA Aaa 2,500 RITR, Series 34, 6.92% due 5/01/2032 (e) 2,648
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,555 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Virtual
Health Issue), 4.50% due 7/01/2028 (c) 1,445
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds:
A- A3 6,060 (Atlantic City Medical Center), Series C, 6.80% due 7/01/2011 6,690
A- Baa1 3,000 (Capital Health System Obligation Group), 5.25% due 7/01/2027 2,987
BBB NR* 2,000 (Christian Health Care Center), Series A, 5.25% due 7/01/2013 2,010
AAA Aaa 1,000 (Community Medical Center/Kimball), 5.25% due 7/01/2011 (c) 1,055
AAA Aaa 1,000 (Community Medical Center/Kimball), 5.25% due 7/01/2012 (c) 1,048
AAA Aaa 2,135 (Community Medical Center/Kimball), 5.25% due 7/01/2013 (c) 2,221
BBB+ NR* 3,500 (Holy Name Hospital), 6% due 7/01/2025 3,686
BBB Baa2 3,300 (Saint Elizabeth Hospital Obligation Group), 6% due 7/01/2020 3,492
- -----------------------------------------------------------------------------------------------------------------------------------
A+ Aa2 7,820 New Jersey Sports and Exposition Authority (State Contract), Series A, 6.50% due 3/01/2019 8,558
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority, Higher Educational Revenue Bonds (g):
BBB Baa3 3,355 (Saint Peter's College), Series B, 6.80% due 7/01/2002 3,750
BBB Baa3 3,600 (Saint Peter's College), Series B, 6.85% due 7/01/2002 4,030
BBB+ A3 6,250 (Drew University), Series E, 6.25% due 7/01/2002 6,863
AAA Aaa 4,935 (Princeton University), Series C, 6.375% due 7/01/2002 5,457
- -----------------------------------------------------------------------------------------------------------------------------------
AA+ Aaa 2,310 New Jersey State Educational Facilities Authority, Revenue Bonds (Institute for
Advanced Study), Series G, 5% due 7/01/2028 2,327
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority, Revenue Refunding Bonds:
AAA Aaa 2,240 (Seton Hall University Project), 5.25% due 7/01/2013 (a)(h) 2,350
A A3 6,030 (Stevens Institute of Technology), Series A, 6.80% due 7/01/2002 (g) 6,740
- -----------------------------------------------------------------------------------------------------------------------------------
AA+ Aa1 2,105 New Jersey State, GO, AMT, 7.05% due 7/15/2015 2,454
- -----------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 5,000 New Jersey State Higher Education Assistance Authority, Student Loan Revenue Bonds,
RIB, Series 18, 6.665% due 6/01/2017 (a)(e) 5,086
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds,
AMT (d):
AAA Aaa 3,640 Series M, 7% due 10/01/2026 3,985
AAA Aaa 1,940 Series U, 5.55% due 10/01/2011 2,050
AAA Aaa 3,335 Series U, 5.60% due 10/01/2012 3,523
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 New Jersey State Transit Corporation, COP, 6.50% due 10/01/2016 (c) 2,322
- -----------------------------------------------------------------------------------------------------------------------------------
North Brunswick Township, New Jersey, GO, UT (g):
NR* A1 1,190 6.50% due 5/15/2002 1,310
NR* A1 1,400 6.50% due 5/15/2003 1,541
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 6,230 Passaic Valley, New Jersey, Water Commission, Water Supply Revenue Refunding Bonds,
Series A, 6.40% due 12/15/2002 (b)(g) 6,958
- -----------------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 2,465 67th Series, 6.90% due 7/01/2011 2,579
AA- A1 1,000 69th Series, 7.125% due 6/01/2025 1,060
AA- A1 1,000 93rd Series, 6.125% due 6/01/2094 1,172
AAA Aaa 3,750 104th Series, 4.75% due 1/15/2026 (a) 3,639
AAA Aaa 2,000 116th Series, 4.25% due 10/01/2026 (b) 1,798
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey (concluded)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA Aaa $ 4,325 Port Authority of New York and New Jersey, RITR, AMT, 108th Series, 7.885%
due 1/15/2017 (c)(e)$ 5,045
- -----------------------------------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds:
AAA Aaa 2,500 (JFK International Air Terminal Project), AMT, Series 6, 4th Installment, 5.75%
due 12/01/2025 (d) 2,649
A1+ VMIG1+ 1,400 Refunding (Versatile Structure Obligation), VRDN, Series 2, 3.25% due 5/01/2019 (f) 1,400
A1+ VMIG1+ 900 Refunding (Versatile Structure Obligation), VRDN, Series 3, 3.35% due 6/01/2020 (f) 900
- -----------------------------------------------------------------------------------------------------------------------------------
AA A1 2,275 Rutgers State University, New Jersey, Refunding (State University of New Jersey)
Series A, 6.50% due 5/01/2018 2,483
- -----------------------------------------------------------------------------------------------------------------------------------
AA+ Aaa 760 Union County, New Jersey, Improvement Authority, Revenue Refunding Bonds
(County Guaranteed Lease), 5.30% due 11/15/2006 825
- -----------------------------------------------------------------------------------------------------------------------------------
A1+ P1 400 Union County, New Jersey, Industrial Pollution Control Financing Authority, PCR,
Refunding (Exxon Project), VRDN, 2.90% due 10/01/2024 (f) 400
- -----------------------------------------------------------------------------------------------------------------------------------
NR* NR* 3,440 Union County, New Jersey, Utilities Authority, RITR, Series 38, 6.92% due 6/01/2020 (a)(e) 3,676
- -----------------------------------------------------------------------------------------------------------------------------------
AA- A3 3,100 University of Medicine and Dentistry, New Jersey, Revenue Bonds, Series E,
6.50% due 12/01/2001 (g) 3,405
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,400 Puerto Rico Commonwealth, Infrastructure Financing Authority, Special Revenue
Bonds, Series A, 5% due 7/01/2028 (a) 1,402
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$187,560)--99.1% 201,429
Other Assets Less Liabilities--0.9% 1,830
--------
Net Assets--100.0% $203,259
========
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) 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 November 30, 1998.
(f) 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, 1998.
(g) Prerefunded.
(h) This issue will begin to accrue interest on June 1, 1999.
* Not Rated.
** Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
+ Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
QUALITY PROFILE
The quality ratings of securities in the Fund as of November 30, 1998 were as
follows:
- --------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................. 50.5%
AA/Aa ............................................................... 19.8
A/A ................................................................. 13.3
BBB/Baa ............................................................. 11.3
NR (Not Rated) ...................................................... 2.8
Other+ .............................................................. 1.4
- --------------------------------------------------------------------------------
+ Temporary investments in short-term municipal securities.
7
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
FINANCIAL INFORMATION
Statement of Assets, Liabilities and Capital as of November 30, 1998
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$187,559,661) (Note 1a) ........ $201,429,314
Cash ................................................................... 55,111
Receivables:
Securities sold ...................................................... $ 3,784,678
Interest ............................................................. 3,512,998 7,297,676
------------
Prepaid expenses and other assets ...................................... 7,648
------------
Total assets ........................................................... 208,789,749
------------
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities: Payables:
Securities purchased ................................................. 5,404,544
Investment adviser (Note 2) .......................................... 80,441 5,484,985
------------
Accrued expenses and other liabilities ................................. 45,543
------------
Total liabilities ...................................................... 5,530,528
------------
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets: Net assets ............................................................. $203,259,221
------------
- ---------------------------------------------------------------------------------------------------------------------------
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 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 (8,994,422 shares issued
and outstanding) ..................................................... $ 899,442
Paid-in capital in excess of par ....................................... 125,771,102
Undistributed investment income--net ................................... 1,232,997
Undistributed realized capital gains on investments--net ............... 1,486,027
Unrealized appreciation on investments--net ............................ 13,869,653
------------
Total--Equivalent to $15.93 net asset value per share of Common Stock
(market price--$16.75) ................................................. 143,259,221
------------
Total capital .......................................................... $203,259,221
============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
8
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
FINANCIAL INFORMATION (continued)
Statement of Operations
<TABLE>
<CAPTION>
For the Year Ended
November 30, 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Interest and amortization of premium and discount earned .. $ 11,506,942
Income
(Note 1d):
- --------------------------------------------------------------------------------------------------------------
Expenses: Investment advisory fees (Note 2) ......................... $ 1,003,338
Commission fees (Note 4) .................................. 152,208
Professional fees ......................................... 90,740
Transfer agent fees ....................................... 33,726
Accounting services (Note 2) .............................. 29,116
Printing and shareholder reports .......................... 28,646
Directors' fees and expenses .............................. 23,089
Custodian fees ............................................ 15,266
Listing fees .............................................. 14,939
Pricing fees .............................................. 9,383
Other ..................................................... 15,550
------------
Total expenses ............................................ 1,416,001
------------
Investment income--net .................................... 10,090,941
------------
- --------------------------------------------------------------------------------------------------------------
Realized & Realized gain on investments--net ......................... 3,971,836
Unrealized Change in unrealized appreciation on investments--net ..... (242,972)
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations ...... $ 13,819,805
(Notes 1b, 1d & 3): ============
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
FINANCIAL INFORMATION (continued)
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the Year Ended November 30,
------------------------------
Increase (Decrease) in Net Assets: 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations: Investment income--net ................................................. $ 10,090,941 $ 10,012,062
Realized gain on investments--net ...................................... 3,971,836 281,161
Change in unrealized appreciation on investments--net .................. (242,972) 197,125
------------- -------------
Net increase in net assets resulting from operations ................... 13,819,805 10,490,348
------------- -------------
- ------------------------------------------------------------------------------------------------------------------------------
Dividends & Investment income--net:
Distributions to Common Stock ......................................................... (7,921,213) (8,018,125)
Shareholders Preferred Stock ...................................................... (1,914,624) (2,010,600)
(Note 1e): Realized gain on investments--net:
Preferred Stock ...................................................... (260,736) --
------------- -------------
Net decrease in net assets resulting from dividends and distributions
to shareholders ........................................................ (10,096,573) (10,028,725)
------------- -------------
- ------------------------------------------------------------------------------------------------------------------------------
Capital Stock Value of shares issued to Common Stock shareholders in
Transactions reinvestment of dividends .............................................. 1,902,991 688,295
(Note 4): ------------- -------------
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets: Total increase in net assets ........................................... 5,626,223 1,149,918
Beginning of year ...................................................... 197,632,998 196,483,080
------------- -------------
End of year* ........................................................... $ 203,259,221 $ 197,632,998
============= =============
- ------------------------------------------------------------------------------------------------------------------------------
*Undistributed investment income--net ................................... $ 1,232,997 $ 977,893
============= =============
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
FINANCIAL INFORMATION (concluded)
Financial Highlights
<TABLE>
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended November 30,
--------------------------------------------------------
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of year ............. $ 15.51 $ 15.46 $ 15.56 $ 13.22 $ 15.88
Operating -------- -------- -------- -------- --------
Performance: Investment income--net ......................... 1.13 1.14 1.14 1.17 1.15
Realized and unrealized gain (loss) on
investments--net ............................... .42 .05 (.10) 2.33 (2.67)
-------- -------- -------- -------- --------
Total from investment operations ............... 1.55 1.19 1.04 3.50 (1.52)
-------- -------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net ...................... (.89) (.91) (.91) (.90) (.93)
Realized gain on investments--net ............ -- -- -- -- (.01)
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders ............................. (.89) (.91) (.91) (.90) (.94)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net ..................... (.21) (.23) (.23) (.26) (.20)
Realized gain on investments--net .......... (.03) -- -- -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity ....... (.24) (.23) (.23) (.26) (.20)
-------- -------- -------- -------- --------
Net asset value, end of year ................... $ 15.93 $ 15.51 $ 15.46 $ 15.56 $ 13.22
======== ======== ======== ======== ========
Market price per share, end of year ............ $ 16.75 $15.5625 $ 14.50 $ 13.75 $ 12.125
======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Based on market price per share ................ 13.89% 13.96% 12.34% 21.26% (16.87%)
Return:* ======== ======== ======== ======== ========
Based on net asset value per share ............. 8.68% 6.52% 5.84% 25.85% (10.82%)
======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses ....................................... .71% .72% .72% .73% .74%
Net Assets:** ======== ======== ======== ======== ========
Investment income--net ......................... 5.03% 5.14% 5.18% 5.40% 5.30%
======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, net of Preferred Stock, end of year
Data: (in thousands) ................................. $143,259 $137,633 $136,483 $137,355 $116,746
======== ======== ======== ======== ========
Preferred Stock outstanding, end of year
(in thousands) ................................. $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
======== ======== ======== ======== ========
Portfolio turnover ............................. 46.83% 30.50% 49.76% 32.79% 15.06%
======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------------
Leverage: Asset coverage per $1,000 ...................... $ 3,388 $ 3,294 $ 3,275 $ 3,289 $ 2,946
======== ======== ======== ======== ========
- --------------------------------------------------------------------------------------------------------------------------------
Dividends Per Share Investment income--net ......................... $ 798 $ 838 $ 837 $ 938 $ 741
On Preferred Stock ======== ======== ======== ======== ========
Outstanding:+
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
+ Dividends have been adjusted to reflect a two-for-one stock split
that occurred on December 1, 1994.
See Notes to Financial Statements.
11
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
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's financial statements are prepared in accordance with
generally accepted accounting principles which may require the use of management
accruals and estimates. 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 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 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.
o 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.
o 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).
12
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
NOTES TO FINANCIAL STATEMENTS (concluded)
Interest income is recognized on the accrual basis. Discounts and market
premiums are amortized into interest income. Realized gains and losses on
security transactions are determined on the identified cost basis.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate of 0.50% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock.
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended November 30, 1998 were $98,934,773 and $91,635,207, respectively.
Net realized gains for the year ended November 30, 1998 and net unrealized gains
as of November 30, 1998 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Gains Gains
- --------------------------------------------------------------------------------
Long-term investments ............................ $3,971,836 $13,869,653
---------- -----------
Total ............................................ $3,971,836 $13,869,653
========== ===========
- --------------------------------------------------------------------------------
As of November 30, 1998, net unrealized appreciation for Federal income tax
purposes aggregated $13,869,653, of which $13,958,154 related to appreciated
securities and $88,501 related to depreciated securities. The aggregate cost of
investments at November 30, 1998 for Federal income tax purposes was
$187,559,661.
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
Shares issued and outstanding during the years ended November 30, 1998 and
November 30, 1997 increased by 120,384 and 44,387, respectively, as a result of
dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred Stock 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
November 30, 1998 was 3.08%.
Shares issued and outstanding during the years ended November 30, 1998 and
November 30, 1997 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 year ended November 30, 1998, Merrill Lynch, Pierce,
Fenner & Smith Inc., an affiliate of FAM, earned $120,963 as commissions.
5. Subsequent Event:
On December 7, 1998, the Fund's Board of Directors declared an ordinary income
dividend and long-term capital gains distribution to Common Stock shareholders
in the amount of $.082711 and $.309188 per share, respectively, payable on
December 30, 1998 to shareholders of record as of December 23, 1998.
13
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
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, 1998, the related statements of operations for the year then ended
and 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 five-year
period then ended. 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.
We conducted our audits in accordance with gener-ally 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, 1998 by correspondence with the custodian and brokers. 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, 1998, 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 8, 1999
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, 1998 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, the following table summarizes the per share taxable distributions
paid by the Fund during the year:
- --------------------------------------------------------------------------------
Payable Long-Term
Date Capital Gains*
- --------------------------------------------------------------------------------
Preferred Stock Shareholders 11/05/98 $27.39
11/12/98 $26.19
11/19/98 $26.34
11/27/98 $28.72
- --------------------------------------------------------------------------------
* The entire distribution is subject to the 20% tax rate.
Please retain this information for your records.
14
<PAGE>
MuniYield New Jersey Fund, Inc. November 30, 1998
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 shares of Common Stock 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.
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
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Theodore R. Jaeckel Jr., Vice President
Gerald M. Richard, Treasurer
Philip M. Mandel, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYJ
15
<PAGE>
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.
MuniYield
New Jersey
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16381--11/98
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