UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-6435
Name of Fund: MuniYield Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ,
08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 04/30/03
Date of reporting period: 11/01/02 - 04/30/03
Item 1 - Attach shareholder report
(BIULL LOGO)
Merrill Lynch Investment Managers
Semi-Annual Report
April 30, 2003
MuniYield
Fund, Inc.
www.mlim.ml.com
MuniYield Fund, Inc. seeks to provide shareholders with as high a
level of current income exempt from Federal income taxes as is
consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term,
investment-grade municipal obligations the interest on which, in the
opinion of bond counsel to the issuer, is exempt from Federal income
taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield Fund, Inc. for their
information. It is not a prospectus. Past performance results shown
in this report should not be considered a representation of future
performance. The Fund has leveraged its Common Stock and intends to
remain leveraged 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 Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIYIELD FUND, INC.
The Benefits
And Risks of
Leveraging
MuniYield 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 of 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 such securities.
Swap
Agreements
The Fund may also invest in swap agreements, which are over-the-
counter contracts in which one party agrees to make periodic
payments based on the change in market value of a specified bond,
basket of bonds, or index in return for periodic payments based on a
fixed or variable interest rate or the change in market value of a
different bond, basket of bonds or index. Swap agreements may be
used to obtain exposure to a bond or market without owning or taking
physical custody of securities.
MuniYield Fund, Inc., April 30, 2003
DEAR SHAREHOLDER
For the six months ended April 30, 2003, the Common Stock of
MuniYield Fund, Inc. had a net annualized yield of 7.01%, based on a
period-end per share net asset value of $13.46 and $.468 per share
income dividends. Over the same period, the total investment return
on the Fund's Common Stock was +5.08%, based on a change in per
share net asset value from $13.28 to $13.46, and assuming
reinvestment of $.468 per share ordinary income dividends.
For the six-month period ended April 30, 2003, the Fund's Auction
Market Preferred Stock had an average yield as follows: Series A,
1.09%; Series B, 1.33%; Series C, 1.08%; Series D, 1.22%; Series E,
1.07%; and Series F, 1.14%.
For a description of the Fund's total investment return based on a
change in the per share market value (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial
Highlights section of the Financial Statements included in this
report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset
value. As a result, total investment returns based on changes in the
Fund's market value can vary significantly from total investment
return based on changes in the Fund's net asset value.
The Municipal Market Environment
During the six-month period ended April 30, 2003, amid considerable
weekly and monthly volatility, long-term fixed income interest rates
generally declined. Geopolitical tensions and volatile equity
valuations continued to overshadow economic fundamentals as they
have for most of the last 12 months. Reacting to the strong U.S.
equity rally that began last October, fixed income bond yields
remained under pressure in November 2002, as U.S. equity markets
continued to strengthen. During November, the Standard & Poor's 500
(S&P 500) Index rose an additional 5.50%. Equity prices were
supported by further signs of U.S. economic recovery, especially
improving labor market activity. In late November, third-quarter
2002 U.S. gross domestic product growth was 4%, well above the
second-quarter 2002 rate of 1.30%. Financial conditions were also
strengthened by a larger-than-expected reduction in short-term
interest rates by the Federal Reserve Board in early November. The
Federal Funds target rate was lowered 50 basis points (0.50%) to
1.25%, its lowest level since the 1960s. This action by the Federal
Reserve Board was largely viewed as being taken to bolster the
sputtering U.S. economic recovery. Rebounding U.S. equity markets
and the prospects for a more substantial U.S. economic recovery
pushed long-term U.S. Treasury yield levels to 5.10% by late
November.
However, into early 2003, softer equity prices and renewed investor
concerns about U.S. military action against Iraq and North Korea
again pushed bond prices higher. Reacting to disappointing holiday
sales and corporate managements' attempts to scale back analysts'
expectation of future earnings, the S&P 500 Index declined more than
10% from December 2002 to February 2003. Fearing an eventual
U.S./Iraq military confrontation in 2003, investors again sought the
safety of U.S. Treasury obligations and the prices of fixed income
issues rose. By the end of February 2003, U.S. Treasury bond yields
had declined approximately 40 basis points to 4.67%.
Bond yields continued to fall into early March. Once direct U.S.
military action against Iraq began, bond yields quickly rose. Prior
uncertainty surrounding the Iraqi situation was obviously removed
and early U.S. military successes fostered the hope that the
conflict would be quickly and positively concluded. Concurrently,
the S&P 400 Index rose over 6% as investors, in part, sold fixed
income issues to purchase equities in anticipation of a strong
U.S. economic recovery once the Iraqi conflict was resolved. By
mid-March, U.S. Treasury bond yields again rose to above 5%.
However, as there was growing sentiment that hostilities may not be
resolved in a matter of weeks, U.S. Treasury bond yields again
declined to end the month at 4.81%.
For the six months ended April 30, 2003, long-term U.S. Treasury
bond yields ratcheted back to near 5% by mid-April, as U.S. equity
markets continued to improve and the safe-haven premium U.S.
Treasury issues had commanded prior to the beginning of the Iraqi
conflict continued to be withdrawn. However, with the quick positive
resolution of the Iraqi war, investors quickly resumed their focus
on the fragile U.S. economic recovery. Business activity in the
United States has remained sluggish, especially job creation.
Investors have also been concerned that the recent SARS outbreak
would have a material, negative impact on world economic conditions,
especially in China and Japan. First quarter 2003 U.S. gross
domestic product was released in late April initially estimating
U.S. economic activity to be growing at 1.60%, well below many
analysts' assessments. These factors, as well as the possibility
that the Federal Reserve Board could again lower short-term interest
rates to encourage more robust U.S. economic growth, pushed bond
prices higher during the last two weeks of the period. By April 30,
2003, long-term U.S. Treasury bond yields had eclined to almost
4.75%. Over the past six months, long-term U.S. bond yields fell
more than 20 basis points.
For the six months ended April 30, 2003, long-term tax-exempt bond
yields also fell modestly. Yield volatility was reduced relative to
that seen in U.S. Treasury issues, as municipal bond prices were
much less sensitive to worldwide geopolitical pressures on a daily
and weekly basis. Tax-exempt bond yields generally followed their
taxable counterparts higher, responding to a more positive U.S.
fixed income environment and continued slow economic growth. After
rising approximately 10 basis points in November 2002 to 5.30%,
municipal bond yields generally declined through February 2003. At
February 28, 2003, long-term tax-exempt revenue bond yields, as
measured by the Bond Buyer Revenue Bond Index, fell to approximately
5.05%. However, similar to U.S. Treasury bond yields, once military
action began in Iraq, municipal bond yields rose sharply to nearly
5.20% before declining to approximately 5.10% by the end of April.
Over the past six months, long-term tax-exempt bond yields fell
approximately 11 basis points, slightly less than U.S. Treasury
obligations.
A number of factors have combined to generate consistently strong
demand for municipal bonds throughout the six-month period ended
April 30, 2003. Generally weak U.S. equity markets have supported
continued positive demand for tax-exempt products as investors have
sought the relative security of fixed income issues. Also, with tax-
exempt money market rates near 1%, the demand for longer maturity
municipal issues has increased as investors have opted to buy longer
maturity issues rather than remain in cash reserves. Additionally,
investors received approximately $30 billion in January 2003 from
bond maturities, coupon income and proceeds from early redemptions.
However, these positive demand factors were not totally able to
offset the increase in tax-exempt new-issue supply, preventing more
significant declines in tax-exempt bond yields. This modest
underperformance has served to make municipal bonds a particularly
attractive purchase relative to their taxable counterparts.
Throughout most of the yield curve, municipal bonds have been able
to be purchased at yields near or exceeding those of comparable
Treasury issues. Compared to their recent historical averages of
82% - 88% of U.S. Treasury yields, municipal bond yield ratios in
their current 95% - 105% range are likely to prove attractive to
long-term investors.
Declining U.S. equity markets and escalating geopolitical pressures
have resulted in reduced economic activity and consumer confidence.
It is important to note that, despite all the recent negative
factors impeding the growth of U.S. businesses, the U.S. economy
still grew at an approximate 2.50% rate for all of 2002, twice that
of 2001. Similar expansion is expected for early 2003. Lower oil
prices, reduced geopolitical uncertainties, increased Federal
spending for defense, and a likely Federal tax cut are all factors
which should promote stronger economic growth later this year.
However, it is questionable to expect that business and investor
confidence can be so quickly restored as to trigger dramatic,
explosive U.S. economic growth and engender associated, large-scale
interest rate increases. The resumption of solid economic growth is
likely to be a gradual process accompanied by equally graduated
increases in bond yields. Moderate economic growth, especially
within a context of negligible inflationary pressures, should not
greatly endanger the positive fixed income environments tax-exempt
products currently enjoy.
Portfolio Strategy
During the six-month period ended April 30, 2003, we focused on
enhancing the Fund's dividend stream and reducing the Fund's asset
price volatility. Reducing asset volatility involved shortening the
Fund's interest rate sensitivity. This strategy worked well in
January 2003 as interest rates increased from near historic lows.
Since then, interest rates have decreased as a result of economic
uncertainty, an unstable stock market and the unknown outcome of the
Iraqi war. As interest rates have fallen further, we shifted to a
more defensive position. While this strategy may have been
implemented a bit early, it is our belief that interest rates do not
have much further to fall. The conclusion to the Iraqi conflict is
expected to lift the tremendous downward pressure being applied upon
the United States economy. We believe the economy is likely to
revive by year end and drive interest rates higher.
During the six-month period ended April 30, 2003, the Fund's
borrowing costs remained in the 1% - 1.5% range, with interest rates
presently near 1%. These very attractive funding levels, in
combination with the steep tax-exempt yield curve, have continued to
generate significant income benefits to the Fund's Common Stock
shareholder. We do not expect any material reduction in the Fund's
borrowing costs in 2003 as no additional monetary easings by the
Federal Reserve Board are anticipated. We expect short-term
borrowing costs to remain at current attractive levels for the
coming months. 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 on the Fund's Common
Stock. (For a more complete explanation of the benefits and risks of
leveraging, see page 1 of this report to shareholders.)
MuniYield Fund, Inc., April 30, 2003
In Conclusion
We appreciate your ongoing interest in MuniYield Fund, Inc., and we
look forward to serving your investment needs in the months and
years to come.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President
(John M. Loffredo)
John M. Loffredo
Senior Vice President
(Roberto Roffo)
Roberto Roffo
Vice President and
Portfolio Manager
May 19, 2003
PROXY RESULTS
During the six-month period ended April 30, 2003, MuniYield Fund,
Inc.'s Common Stock shareholders voted on the following proposal.
The proposal was approved at a shareholders' meeting on April 28,
2003. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Terry K. Glenn 42,050,421 800,306
Joe Grills 42,041,798 808,929
Andre F. Perold 42,045,007 805,720
Roberta Cooper Ramo 42,045,640 805,087
Robert S. Salomon, Jr. 42,038,967 811,760
Stephen B. Swensrud 42,035,998 814,729
During the six-month period ended April 30, 2003, MuniYield Fund,
Inc.'s Preferred Stock shareholders (Series A, B, C, D, E, F & G)
voted on the following proposal. The proposal was approved at a
shareholders' meeting on April 28, 2003. A description of the
proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Terry K. Glenn, James H. Bodurtha,
Joe Grills, Herbert I. London, Andre F. Perold, Roberta Cooper Ramo,
Robert S. Salomon, Jr. and Stephen B. Swensrud 11,032 10
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Alabama--0.0% A1 VMIG1++ $ 100 Columbia, Alabama, IDB, PCR, Refunding (Alabama Power
Company Project), VRDN, Series E, 1.40% due 10/01/2022 (m) $ 100
Alaska--0.8% NR* Baa3 5,050 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds
(Amerada Hess Pipeline Corporation), 6.10% due 2/01/2024 5,075
Arizona--5.3% AAA Aaa 1,460 Arizona State Wastewater Management Authority, Wastewater
Treatment Financial Assistance Revenue Bonds, Series A, 5.60%
due 7/01/2006 (b)(c) 1,663
Maricopa County, Arizona, IDA, M/F Housing Revenue Refunding
Bonds (CRS Pine Ridge Housing Corporation), Series A-1 (g):
AAA NR* 5,000 6% due 10/20/2031 5,600
AAA NR* 5,000 6.05% due 10/20/2036 5,602
Phoenix, Arizona, IDA, Airport Facility Revenue Refunding
Bonds (America West Airlines Inc. Project), AMT:
NR* Caa2 8,300 6.25% due 6/01/2019 2,720
NR* Caa2 6,900 6.30% due 4/01/2023 2,261
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds (Bay Club
Apartments Project)(g):
AAA NR* 565 5.80% due 11/20/2021 632
AAA NR* 915 5.90% due 11/20/2031 1,019
AAA NR* 1,270 5.95% due 11/20/2036 1,415
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds (Summit
Apartments LLC Project)(g):
AAA NR* 1,610 6.25% due 7/20/2022 1,837
AAA NR* 1,425 6.45% due 7/20/2032 1,640
AAA NR* 1,305 6.55% due 7/20/2037 1,508
Pima County, Arizona, IDA, M/F Housing Revenue Bonds
(Columbus Village) Series A (g):
AAA NR* 990 5.90% due 10/20/2021 1,113
AAA NR* 1,725 6% due 10/20/2031 1,932
AAA NR* 2,295 6.05% due 10/20/2041 2,566
Portfolio
Abbreviations
To simplify the listings of MuniYield 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
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
MuniYield Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
California--2.6% Los Angeles County, California, Schools Regionalized Business
Services, COP (County Schools Pooled Financing Program),
Series B (c):
AAA Aaa $ 3,000 5% due 9/01/2022 $ 3,005
AAA Aaa 4,740 5.125% due 9/01/2027 4,747
AAA Aaa 2,500 5.125% due 9/01/2031 2,503
Los Angeles County, California, Schools Regionalized Business
Services, COP, Pooled Financing, Series A (c):
AAA Aaa 1,430 5.90%** due 8/01/2019 651
AAA Aaa 2,510 6%** due 8/01/2029 628
AA Aa3 1,250 Sacramento County, California, Sanitation District Financing
Authority, Revenue Refunding Bonds, Trust Receipts, Class R,
Series A, 10.32% due 12/01/2019 (k) 1,525
BBB+ A2 2,175 Vernon, California, Electric System Revenue Bonds (Malburg
Generating Station Project), 5.30% due 4/01/2026 2,178
Colorado--5.3% AA Aa2 1,005 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT,
Series D-2, 6.90% due 4/01/2029 1,046
Colorado Health Facilities Authority, Health Facilities Revenue
Bonds (National Benevolent Association):
NR* Baa3 1,000 Series A, 6.375% due 9/01/2029 864
NR* Baa3 1,200 Series C, 7% due 3/01/2019 1,195
NR* Baa3 750 Series C, 7% due 3/01/2024 728
NR* Baa3 1,125 Series C, 7.125% due 3/01/2030 1,096
AAA NR* 8,000 Denver, Colorado, City and County Airport Revenue Bonds, AMT,
Series D, 7.75% due 11/15/2013 (c) 10,096
NR* Baa2 5,500 Denver, Colorado, Urban Renewal Authority, Tax Increment
Revenue Bonds (Pavilions), AMT, 7.75% due 9/01/2016 5,957
Elk Valley, Colorado, Public Improvement Revenue Bonds (Public
Improvement Fee), Series A:
NR* NR* 1,735 7.10% due 9/01/2014 1,773
NR* NR* 5,065 7.35% due 9/01/2031 5,174
BB+ Ba1 3,500 Northwest Parkway, Colorado, Public Highway Authority Revenue
Bonds, First Tier, Sub-Series D, 7.125% due 6/15/2041 3,660
Connecticut-- NR* NR* 650 Connecticut State Development Authority, IDR (AFCO Cargo BDL-LLC
2.7% Project), AMT, 7.35% due 4/01/2010 654
AAA Aaa 9,675 Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage
Finance Program), Series F, Sub-Series F-1, 6% due 5/15/2017 10,293
AAA Aaa 4,355 Connecticut State Special Tax Obligation Revenue Bonds,
Transportation Infrastructure, Series A, 6% due 12/01/2009 (b)(h) 5,226
Florida--5.1% NR* NR* 1,760 Bonnet Creek Resort, Florida, Community Development District,
Special Assessment Revenue Bonds, 7.50% due 5/01/2034 1,810
AAA Aaa 2,755 Broward County, Florida, Airport System Revenue Bonds, AMT,
Series J-1, 5.75% due 10/01/2018 (c) 3,037
Hillsborough County, Florida, IDA, Exempt Facilities Revenue
Bonds (National Gypsum), AMT:
NR* NR* 11,500 Series A, 7.125% due 4/01/2030 11,567
NR* NR* 5,000 Series B, 7.125% due 4/01/2030 5,029
AAA Aaa 8,700 Pinellas County, Florida, Housing Authority, Housing Revenue
Bonds (Affordable Housing Program), 4.60% due 12/01/2010 (i) 9,461
Georgia--3.1% AAA Aaa 12,140 Atlanta, Georgia, Airport Revenue Refunding Bonds, Series A,
5.875% due 1/01/2016 (h) 13,915
NR* NR* 4,600 Atlanta, Georgia, Tax Allocation Revenue Bonds (Atlantic
Station Project), 7.90% due 12/01/2024 4,771
Idaho--1.9% AA NR* 1,400 Idaho Housing Agency, S/F Mortgage Revenue Refunding Bonds,
AMT, Senior-Series C-2, 7.15% due 7/01/2023 1,412
BB+ Ba3 12,125 Power County, Idaho, Industrial Development Corporation, Solid
Waste Disposal Revenue Bonds (FMC Corporation Project), AMT,
6.45% due 8/01/2032 10,164
Illinois--6.4% NR* B2 835 Beardstown, Illinois, IDR (Jefferson Smurfit Corp. Project),
8% due 10/01/2016 858
NR* Aaa 780 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, Series B,
7.625% due 9/01/2027 (f)(g)(l) 813
AAA Aaa 3,285 Illinois Development Finance Authority Revenue Bonds (Presbyterian
Home Lake Project), Series B, 6.30% due 9/01/2022 (i) 3,733
NR* NR* 2,750 Illinois Development Finance Authority, PCR, Refunding (Illinois
Power Company Project), Series A, 7.375% due 7/01/2006 (b) 3,247
NR* NR* 2,500 Illinois Educational Facilities Authority, Revenue Refunding
Bonds (Chicago Osteopathic Health System), 7.25% due 11/15/2019 (b) 2,567
NR* Ba3 1,250 Illinois Health Facilities Authority Revenue Bonds (Holy Cross
Hospital Project), 6.70% due 3/01/2014 876
Illinois Health Facilities Authority, Revenue Refunding Bonds,
VRDN (m):
A1 VMIG1++ 5,700 (Resurrection Health Care), Series A, 1.35% due 5/15/2029 (i) 5,700
A1 VMIG1++ 5,310 (University of Chicago Hospitals), 1.35% due 8/01/2026 (e) 5,310
AAA Aaa 4,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated
State Tax Revenue Bonds (McCormick Place Expansion), Series A,
5.50% due 6/15/2023 (e) 4,367
AAA Aaa 8,000 Metropolitan Pier and Exposition Authority, Illinois, Hospitality
Facilities Revenue Bonds (McCormick Place Convention Center),
7% due 7/01/2026 (a) 10,718
Kansas--0.2% BB+ NR* 1,250 Lenexa, Kansas, Health Care Facility Revenue Bonds (Lakeview
Village Inc.), Series C, 6.875% due 5/15/2032 1,271
Kentucky--0.7% BBB Baa2 4,000 Perry County, Kentucky, Solid Waste Disposal Revenue Bonds
(TJ International Project), AMT, 7% due 6/01/2024 4,151
Louisiana--3.9% BB- NR* 24,000 Port New Orleans, Louisiana, IDR, Refunding (Continental Grain
Company Project), 6.50% due 1/01/2017 23,423
Maryland--1.4% NR* NR* 3,000 Maryland State Energy Financing Administration, Limited
Obligation Revenue Bonds (Cogeneration--AES Warrior Run), AMT,
7.40% due 9/01/2019 3,065
A Baa1 5,000 Maryland State Health and Higher Educational Facilities
Authority, Revenue Refunding Bonds (University of Maryland
Medical System), 6% due 7/01/2032 5,349
Michigan--0.1% NR* VMIG1++ 400 Michigan State Strategic Fund, PCR, Refunding (Consumers Power
Project), VRDN, 1.35% due 4/15/2018 (c)(m) 400
Minnesota--0.6% Eden Prairie, Minnesota, M/F Housing Revenue Bonds (Rolling
Hills Project), Series A (g):
NR* A1 420 6% due 8/20/2021 470
NR* A1 2,000 6.20% due 2/20/2043 2,237
MuniYield Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Minnesota NR* Aa2 $ 995 Minneapolis, Minnesota, M/F Housing Revenue Bonds (Gaar Scott
(concluded) Loft Project), AMT, 5.95% due 5/01/2030 $ 1,068
Missouri--0.9% Fenton, Missouri, Tax Increment Revenue Refunding and
Improvement Bonds (Gravois Bluffs):
NR* NR* 1,055 6.75% due 10/01/2015 1,092
NR* NR* 2,800 7% due 10/01/2021 2,958
AAA NR* 1,380 Missouri State Housing Development Commission, S/F Mortgage
Revenue Bonds, Homeownership, AMT, Series B, 7.55% due
9/01/2027 (f)(g) 1,424
New Jersey-- NR* NR* 3,000 New Jersey EDA, First Mortgage Revenue Bonds (The Presbyterian
13.5% Home), Series A, 6.375% due 11/01/2031 3,018
NR* NR* 3,300 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest
Village Inc. Facility), Series A, 7.25% due 11/15/2031 3,300
New Jersey EDA, Special Facility Revenue Bonds (Continental
Airlines Inc. Project), AMT:
B Caa2 3,905 6.25% due 9/15/2019 2,814
B Caa2 8,595 6.25% due 9/15/2029 6,023
BB+ NR* 4,180 New Jersey Health Care Facilities Financing Authority Revenue
Bonds (Pascack Valley Hospital Association), 6.625% due 7/01/2036 4,131
A- A2 9,640 New Jersey State Transit Corporation, COP (Federal Transit
Administration Grants), Series B, 5.75% due 9/15/2014 10,859
AAA NR* 4,360 Port Authority of New York and New Jersey Revenue Refunding
Bonds, DRIVERS, AMT, Series 177, 10.34% due 10/15/2032 (e)(k) 5,549
AAA NR* 20,575 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds, DRIVERS, AMT, Series 192, 9.85% due
12/01/2025 (e)(k) 24,194
A- A3 9,500 Tobacco Settlement Financing Corporation of New Jersey Revenue
Bonds, 6.75% due 6/01/2039 8,404
A- A3 15,500 Tobacco Settlement Financing Corporation, New Jersey, Asset
Backed Revenue Refunding Bonds, 6% due 6/01/2037 12,651
New York--27.0% AAA Aaa 1,865 Dutchess County, New York, Resource Recovery Agency Revenue
Bonds (Solid Waste System), Series A, 5.25% due 1/01/2011 (e) 2,107
AAA Aaa 5,595 Metropolitan Transportation Authority, New York, Commuter
Facilities Revenue Bonds, RITR, Series 9, 6.10% due
7/01/2006 (b)(h)(k) 7,346
A A2 10,000 Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5.75% due 11/15/2032 10,905
BBB+ A3 10,000 New York City, New York, City IDA, Special Facilities Revenue
Bonds (Terminal One Group Association Project), AMT, 6.125%
due 1/01/2024 10,218
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds (k):
AAA NR* 5,000 DRIVERS, Series 198, 9.90% due 6/15/2026 (e) 6,076
NR* Aaa 3,000 RITR, Series 11, 9.92% due 6/15/2026 (i) 3,767
AA Aa2 24,000 New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System Revenue Refunding Bonds, 5.50%
due 6/15/2033 25,955
A A2 17,615 New York City, New York, Fiscal Year 2003, GO, Series I,
5.375% due 3/01/2027 18,205
New York City, New York, GO, Refunding, Series G:
AAA Aaa 1,825 5.50% due 8/01/2012 (o) 2,069
AAA Aaa 2,090 5.75% due 2/01/2014 (e) 2,301
AAA Aaa 2,000 5.75% due 2/01/2014 (h) 2,202
AAA Aaa 10,000 New York City, New York, GO, Refunding, Trust Receipts,
Series R, 11.078% due 5/15/2014 (h)(k) 13,738
AA- A3 6,100 New York State Dormitory Authority Revenue Refunding Bonds,
Series B, 5.25% due 11/15/2023 6,758
AA- NR* 6,795 New York State Dormitory Authority, Hospital Revenue
Refunding Bonds (North General Hospital), 5.75% due 2/15/2015 7,703
AAA Aaa 7,500 New York State Dormitory Authority, State University
Educational Facilities Revenue Refunding Bonds, Series 1989,
6% due 5/15/2015 (e) 8,789
New York State Thruway Authority, Second General Highway and
Bridge Trust Fund Revenue Bonds, Series A (e):
AAA Aaa 1,000 5.25% due 4/01/2022 1,073
AAA Aaa 3,100 5.25% due 4/01/2023 3,310
AA A1 10,000 New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds (State Facilities), Series A, 5.50%
due 3/15/2032 10,709
NR* NR* 2,500 Suffolk County, New York, IDA, IDR, Refunding (Nissequogue
Cogeneration Partners Facility), AMT, 5.50% due 1/01/2023 2,293
A+ A1 10,000 Triborough Bridge and Tunnel Authority, New York, Subordinate
Revenue Bonds, 5.25% due 11/15/2030 10,461
Westchester County, New York, IDA, Continuing Care Retirement
Mortgage Revenue Bonds (Kendal on Hudson Project), Series A:
NR* NR* 3,450 6.375% due 1/01/2024 3,394
NR* NR* 2,395 6.50% due 1/01/2034 2,359
North Carolina-- BBB Baa3 4,750 North Carolina Eastern Municipal Power Agency, Power System
2.7% Revenue Bonds, Series D, 6.75% due 1/01/2026 5,166
AA Aa2 950 North Carolina HFA, Home Ownership Revenue Bonds, AMT,
Series 8-A, 6.20% due 7/01/2016 1,010
AA Aa2 1,495 North Carolina HFA, S/F Revenue Bonds, Series II, 6.20%
due 3/01/2016 (d) 1,591
NR* NR* 1,000 North Carolina Medical Care Commission, Health Care Facilities,
First Mortgage Revenue Bonds (Arbor Acres Community Project),
6.375% due 3/01/2032 1,014
North Carolina Municipal Power Agency Number 1, Catawba Electric
Revenue Bonds, Series A (e):
AAA Aaa 4,500 5.25% due 1/01/2019 4,868
AAA Aaa 2,250 5.25% due 1/01/2020 2,416
Ohio--2.0% AA+ Aa2 3,000 Cincinnati, Ohio, Water System Revenue Bonds, 5% due 12/01/2023 3,105
Cuyahoga County, Ohio, Mortgage Revenue Bonds (West Tech
Apartments Project), AMT (g):
NR* Aaa 1,410 5.75% due 9/20/2020 1,499
NR* Aaa 2,250 5.85% due 9/20/2030 2,382
NR* NR* 2,175 Lucas County, Ohio, Health Care Facility Revenue Refunding and
Improvement Bonds (Sunset Retirement Communities), Series A,
6.625% due 8/15/2030 2,297
MuniYield Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Ohio NR* Aaa $ 1,120 Mad River, Ohio, Local School District, GO, Refunding
(concluded) (Classroom Facilities), 5.75% due 12/01/2019 (h) $ 1,278
NR* Aaa 1,000 Montgomery County, Ohio, Water System Revenue Refunding Bonds
(Greater Moraine Beaver), 5.375% due 11/15/2015 (c) 1,125
Oklahoma--2.0% Holdenville, Oklahoma, Industrial Authority, Correctional
Facility Revenue Bonds (b)(j):
AAA NR* 1,650 6.60% due 7/01/2006 1,930
AAA NR* 3,250 6.70% due 7/01/2006 3,811
A1+ VMIG1++ 6,090 Oklahoma State Industries Authority, Revenue Refunding
Bonds (Integris Baptist), VRDN, Series B, 1.35% due
8/15/2029 (e)(m) 6,090
Oregon--3.0% Oregon State Department of Administrative Services, COP,
Series A (b)(c):
AAA Aaa 4,405 6% due 5/01/2010 5,251
AAA Aaa 3,500 6% due 5/01/2010 4,172
AA Aa3 6,245 Oregon State, GO, Refunding (Veterans Welfare), Series 80A,
5.70% due 10/01/2032 6,562
NR* NR* 1,830 Portland, Oregon, Housing Authority, Housing Revenue Bonds
(Pine Square and University Place), Series A, 5.875% due 1/01/2022 1,827
Pennsylvania-- BBB+ Baa1 1,500 Lebanon County, Pennsylvania, Health Facilities Authority,
14.4% Hospital Revenue Bonds (Good Samaritan Hospital Project),
6% due 11/15/2035 1,524
AAA Aaa 5,000 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania
Power and Light Company Project), Series B, 6.40% due
9/01/2029 (e) 5,409
AAA Aaa 9,675 Pennsylvania Convention Center Revenue Refunding Bonds, Series A,
6.70% due 9/01/2014 (e) 10,526
Pennsylvania Economic Development Financing Authority, Exempt
Facilities Revenue Bonds (National Gypsum Company), AMT:
NR* NR* 16,350 Series A, 6.25% due 11/01/2027 14,861
NR* NR* 8,800 Series B, 6.125% due 11/01/2027 7,871
AA+ Aa2 1,590 Pennsylvania HFA, S/F Mortgage Refunding Bonds, AMT, Series 42,
6.85% due 4/01/2025 1,649
AAA Aaa 16,270 Pennsylvania State Higher Educational Facilities Authority,
Health Services Revenue Refunding Bonds (Allegheny Delaware
Valley Obligation), Series C, 5.875% due 11/15/2016 (e) 18,388
NR* NR* 1,265 Philadelphia, Pennsylvania, Authority for IDR, Commercial
Development, AMT, 7.75% due 12/01/2017 1,296
Philadelphia, Pennsylvania, Authority for IDR, Refunding,
Commercial Development:
NR* NR* 3,650 (Days Inn), Series B, 6.50% due 10/01/2027 3,622
NR* NR* 4,000 (Doubletree), Series A, 6.50% due 10/01/2027 3,937
AAA Aaa 10,965 Philadelphia, Pennsylvania, School District, GO, Series A,
5.50% due 2/01/2031 (i) 11,758
A- NR* 5,000 Sayre, Pennsylvania, Health Care Facilities Authority
Revenue Bonds (Guthrie Health Issue), Series B, 1%/7.125%
due 12/01/2031 (p) 5,332
Rhode Island-- Woonsocket, Rhode Island, GO (h):
0.5% NR* Aaa 1,225 6% due 10/01/2017 1,438
NR* Aaa 1,195 6% due 10/01/2018 1,399
South Dakota-- BBB+ Baa2 900 South Dakota State Health and Educational Facilities Authority,
0.2% Revenue Refunding Bonds (Prairie Lakes), 7.25% due 4/01/2022 927
Tennessee--2.6% NR* NR* 4,610 Hardeman County, Tennessee, Correctional Facilities Corporation
Revenue Bonds, 7.75% due 8/01/2017 4,645
BB+ Ba1 10,850 McMinn County, Tennessee, IDB, Solid Waste Revenue Bonds
(Recycling Facility--Calhoun Newsprint), AMT, 7.40% due 12/01/2022 10,721
Texas--18.6% Austin, Texas, Convention Center Revenue Bonds (Convention
Enterprises Inc.), First Tier, Series A:
BBB- Baa3 5,000 6.70% due 1/01/2028 5,202
BBB- Baa3 5,000 6.70% due 1/01/2032 5,183
Bexar County, Texas, Housing Finance Corporation, M/F Housing
Revenue Bonds (Water at Northern Hills Apartments), Series A (e):
NR* Aaa 1,300 5.80% due 8/01/2021 1,417
NR* Aaa 2,460 6% due 8/01/2031 2,687
NR* Aaa 1,000 6.05% due 8/01/2036 1,093
BBB Baa2 6,850 Brazos River Authority, Texas, PCR, Refunding (Utilities
Electric Company), AMT, Series B, 5.05% due 6/01/2030 6,835
BBB- Ba1 3,700 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant
Energy Inc. Project), Series B, 7.75% due 12/01/2018 3,856
Dallas-Fort Worth, Texas, International Airport Facility,
Improvement Corporation, Revenue Refunding Bonds (American
Airlines), AMT:
CC Caa2 2,500 Series A, 5.95% due 5/01/2029 1,625
CC Caa2 14,000 Series B, 6.05% due 5/01/2029 5,276
Gregg County, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds (Good Shepherd Medical Center Project):
AA NR* 3,000 6.875% due 10/01/2020 3,560
AA NR* 2,000 6.375% due 10/01/2025 2,257
AA- Aa3 5,000 Guadalupe-Blanco River A1uthority, Texas, Sewage and Solid
Waste Disposal Facility Revenue Bonds (E.I. du Pont de Nemours
and Company Project), AMT, 6.40% due 4/01/2026 5,338
NR* Ba3 3,900 Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue Bonds
(Citgo Petroleum Corporation Project), AMT, 7.50% due 5/01/2025 3,834
B Caa2 2,000 Houston, Texas, Airport System, Special Facilities Revenue
Bonds (Continental Airlines), AMT, Series E, 6.75% due 7/01/2029 1,181
NR* Baa3 1,600 Houston, Texas, Industrial Development Corporation Revenue
Bonds (Air Cargo), AMT, 6.375% due 1/01/2023 1,577
Lower Colorado River Authority, Texas, PCR (Samsung Austin
Semiconductor), AMT:
A- A3 6,200 6.375% due 4/01/2027 6,469
A- A3 4,000 6.95% due 4/01/2030 4,356
BBB- Ba1 7,030 Matagorda County, Texas, Navigation District Number 1, Revenue
Refunding Bonds (Reliant Energy Inc.), Series C, 8% due 5/01/2029 7,309
BBB Baa2 10,280 Sabine River Authority, Texas, PCR, Refunding (TXU Electric
Company Project), Series C, 4% due 5/01/2028 10,283
San Antonio, Texas, Water Revenue Refunding Bonds:
AA- Aa3 1,000 5.875% due 5/15/2016 1,155
AA- Aa3 1,000 5.875% due 5/15/2017 1,152
AAA Aaa 6,500 Texas State Turnpike Authority, Central Texas Turnpike System
Revenue Bonds, First Tier, Series A, 5.50% due 8/15/2039 (c) 6,930
MuniYield Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Texas Texas State, Water Financial Assisstance, GO, AMT, Series A:
(concluded) AA Aa1 $ 4,090 5.375% due 8/01/2033 $ 4,215
AA Aa1 10,560 5.125% due 8/01/2042 10,628
AAA Aaa 7,020 Tyler, Texas, Waterworks and Sewer Revenue Bonds, 5.70%
due 9/01/2030 (h) 7,759
Utah--0.3% NR* NR* 1,000 Tooele County, Utah, PCR, Refunding (Laidlaw Environmental),
AMT, Series A, 7.55% due 7/01/2027 (n) 0
AAA Aaa 1,545 Utah State Board of Regents Revenue Refunding Bonds (University
of Utah Research Facilities), Series A, 5.50% due 4/01/2018 (e) 1,719
Virginia--2.5% BBB NR* 5,000 Amelia County, Virginia, IDA, Solid Waste Disposal Revenue
Refunding Bonds (Waste Management Project), VRDN, AMT, 4.90% due
4/01/2027 (m) 5,162
AAA Aaa 5,000 Fairfax County, Virginia, EDA, Resource Recovery Revenue
Refunding Bonds, AMT, Series A, 6.10% due 2/01/2011 (c) 5,791
NR* NR* 1,000 Pittsylvania County, Virginia, IDA, Revenue Refunding Bonds,
Exempt Facility, AMT, Series A, 7.55% due 1/01/2019 999
Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds:
NR* Ba1 6,200 First Tier, Sub-Series C, 6.25%** due 8/15/2031 194
BB NR* 24,800 Senior-Series B, 6.67%** due 8/15/2029 2,481
Washington--0.4% Vancouver, Washington, Housing Authority, Housing Revenue Bonds
(Teal Pointe Apartments Project), AMT:
NR* NR* 945 6% due 9/01/2022 932
NR* NR* 1,250 6.20% due 9/01/2032 1,230
West Virginia-- B+ Ba3 1,000 Princeton, West Virginia, Hospital Revenue Refunding Bonds
0.6% (Community Hospital Association Inc. Project), 6% due 5/01/2019 807
BBB Baa2 3,000 Upshur County, West Virginia, Solid Waste Disposal Revenue
Bonds (TJ International Project), AMT, 7% due 7/15/2025 3,149
Wisconsin--0.6% NR* Baa3 700 Milwaukee, Wisconsin, Revenue Bonds (Air Cargo), AMT, 6.50% due
1/01/2025 672
AAA Aaa 2,600 Wisconsin State, GO, AMT, Series B, 6.20% due 11/01/2026 (e) 2,913
Wyoming--0.8% BB+ Ba3 2,550 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds
(FMC Corporation Project), AMT, Series A, 7% due 6/01/2024 2,353
AA NR* 2,500 Wyoming Student Loan Corporation, Student Loan Revenue Refunding
Bonds, Series A, 6.20% due 6/01/2024 2,679
Puerto Rico-- Puerto Rico Commonwealth Highway and Transportation Authority,
10.9% Transportation Revenue Bonds:
AAA Aaa 15,000 Trust Receipts, Class R, Series B, 10.079% due 7/01/2035 (e)(k) 20,311
A Baa1 18,000 Series D, 5.75% due 7/01/2041 19,924
AAA Aaa 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Trust Receipts, Class R, Series 16 HH, 9.81% due 7/01/2013 (i)(k) 3,421
Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds:
A- Baa1 5,425 Series F, 5.25% due 7/01/2023 5,752
A- Baa1 6,535 Series F, 5.25% due 7/01/2025 6,924
A- Baa1 3,000 Series G, 5% due 7/01/2026 3,017
NR* Aa2 4,350 Puerto Rico Public Finance Corporation Revenue Bonds, DRIVERS,
Series 272, 9.13% due 8/01/2030 (k) 5,191
Total Municipal Bonds (Cost--$827,056)--143.6% 858,121
Shares
Held Short-Term Securities
6,913 Merrill Lynch Institutional Tax-Exempt Fund++++ 6,913
Total Short-Term Securities (Cost--$6,913)--1.1% 6,913
Total Investments (Cost--$833,969)--144.7% 865,034
Unrealized Depreciation on Forward Interest Rate Swaps++++++--(0.2%) (1,093)
Other Assets Less Liabilities--4.5% 27,086
Preferred Stock, at Redemption Value--(49.0%) (293,009)
---------
Net Assets Applicable to Common Stock--100.0% $ 598,018
=========
(a)Escrowed to maturity.
(b)Prerefunded.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
(h)FGIC Insured.
(i)FSA Insured.
(j)Connie Lee Insured.
(k)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at April 30, 2003.
(l)FHLMC Collateralized.
(m)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 2003.
(n)Non-income producing security.
(o)XL Capital Insured.
(p)Represents a step bond. The first interest rate is in effect
until a predetermined date and the second interest rate is effective
thereafter until maturity.
*Not Rated.
**Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase by the Fund.
++Highest short-term rating by Moody's Investors Service, Inc.
++++Investments in companies considered to be an affiliate of the
Fund (such companies are defined as "Affiliated Companies" in
Section 2(a)(3) of the Investment Company Act of 1940) are as
follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund 6,901 $3
++++++Forward interest rate swaps entered into as of April 30, 2003
were as follows:
(in Thousands)
Unrealized
Notional Appreciation
Amount (Depreciation)
Receive a variable rate equal to 7-Day
Bond Market Association rate at
quarterly reset date and pay a fixed
rate equal to 4.064%.
Broker, Morgan Stanley
Capital Services Inc.
Expires, July 30, 2023 67,000 $ (390)
Receive a variable rate equal to 7-Day
Bond Market Association rate at
quarterly reset date and pay a fixed
rate equal to 4.265%.
Broker, JP Morgan Chase
Expires, July 9, 2023 22,000 (703)
---------
$ (1,093)
=========
See Notes to Financial Statements.
MuniYield Fund, Inc., April 30, 2003
STATEMENT OF NET ASSETS
As of April 30, 2003
Assets: Investments, at value (identified cost--$833,968,668) $865,034,207
Cash 66,589
Receivables:
Securities sold $ 18,943,977
Interest 14,760,674
Dividends 222 33,704,873
------------
Prepaid expenses and other assets 68,383
------------
Total assets 898,874,052
------------
Liabilities: Unrealized depreciation on forward interest rate swaps 1,092,731
Payables:
Securities purchased 5,760,999
Dividends to Common Stock shareholders 536,520
Investment adviser 374,354
Other affiliates 6,836 6,678,709
------------
Accrued expenses 75,384
------------
Total liabilities 7,846,824
------------
Preferred Stock: Preferred Stock, par value $.05 per share (1,800 Series A shares, 1,800
Series B shares, 1,800 Series C shares, 1,800 Series D shares, 2,800
Series E shares and 1,720 Series F shares of AMPS* issued and outstanding
at $25,000 per share liquidation preference) 293,009,477
------------
Net Assets Net assets applicable to Common Stock $598,017,751
Applicable To ============
Common Stock:
Analysis of Common Stock, par value $.10 per share (44,430,631 shares issued and
Net Assets outstanding) $ 4,443,063
Applicable to Paid-in capital in excess of par 632,817,001
Common Stock: Undistributed investment income--net $ 9,881,328
Accumulated realized capital losses on investments--net (79,096,449)
Unrealized appreciation on investments--net 29,972,808
------------
Total accumulated losses--net (39,242,313)
------------
Total--Equivalent to $13.46 net asset value per share of Common Stock
(market price--$13.04) $598,017,751
============
*Auction Market Preferred Stock.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2003
Investment Interest $ 26,297,509
Income: Dividends 3,083
------------
Total income 26,300,592
------------
Expenses: Investment advisory fees $ 2,189,339
Commission fees 374,026
Accounting services 127,297
Transfer agent fees 58,032
Professional fees 34,150
Custodian fees 23,998
Printing and shareholder reports 21,044
Directors' fees and expenses 19,330
Listing fees 15,547
Pricing fees 15,064
Other 24,403
------------
Total expenses before reimbursement 2,902,230
Reimbursement of expenses (559)
------------
Total expenses after reimbursement 2,901,671
------------
Investment income--net 23,398,921
------------
Realized & Realized loss on investments--net (7,994,581)
Unrealized Change in unrealized appreciation on investments--net 14,974,926
Gain (Loss) on ------------
Investments--Net: Total realized and unrealized gain on investments--net 6,980,345
------------
Dividends to Investment income--net (1,669,106)
Preferred Stock ------------
Shareholders: Net Increase in Net Assets Resulting from Operations $ 28,710,160
============
See Notes to Financial Statements.
MuniYield Fund, Inc., April 30, 2003
STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2003 2002
Operations: Investment income--net $ 23,398,921 $ 46,897,259
Realized loss on investments--net (7,994,581) (3,498,012)
Change in unrealized appreciation/depreciation on investments--net 14,974,926 (9,783,800)
Dividends to Preferred Stock shareholders (1,669,106) (4,354,062)
------------ ------------
Net increase in net assets resulting from operations 28,710,160 29,261,385
------------ ------------
Dividends to Investment income--net (20,793,535) (40,283,240)
Common Stock ------------ ------------
Shareholders: Net decrease in net assets resulting from dividends to Common
Stock shareholders (20,793,535) (40,283,240)
------------ ------------
Common Stock Proceeds from issuance of Common Stock resulting from reorganization -- 73,630,647
Transactions: Value of shares issued to Common Stock shareholders in reinvestment
of dividends -- 2,755,535
------------ ------------
Net increase in net assets derived from Common Stock transactions -- 76,386,182
------------ ------------
Net Assets Total increase in net assets applicable to Common Stock 7,916,625 65,364,327
Applicable To Beginning of period 590,101,126 524,736,799
Common Stock: ------------ ------------
End of period* $598,017,751 $590,101,126
============ ============
*Undistributed investment income--net $ 9,881,328 $ 8,945,048
============ ============
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
The following per share data and ratios For the
have been derived from information Six Months
provided in the financial statements. Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Net asset value, beginning of period $ 13.28 $ 13.55 $ 13.08 $ 13.21 $ 16.27
Operating --------- --------- --------- --------- ---------
Performance:++++ Investment income--net .53+++++ 1.04 1.03 1.09 1.12
Realized and unrealized gain (loss)
on investments--net .16 (.31) .52 (.08) (2.34)
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net (.04) (.08) (.22) (.27) (.17)
Realized gain on investments--net -- -- -- -- (.04)
In excess of realized gain on
investments--net -- -- -- -- (.03)
--------- --------- --------- --------- ---------
Total from investment operations .65 .65 1.33 .74 (1.46)
--------- --------- --------- --------- ---------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.47) (.92) (.86) (.87) (.95)
Realized gain on investments--net -- -- -- -- (.38)
In excess of realized gain on
investments--net -- -- -- -- (.27)
--------- --------- --------- --------- ---------
Total dividends and distributions to
Common Stock shareholders (.47) (.92) (.86) (.87) (1.60)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 13.46 $ 13.28 $ 13.55 $ 13.08 $ 13.21
========= ========= ========= ========= =========
Market price per share, end of period $ 13.04 $ 12.88 $ 13.94 $ 12.625 $ 12.875
========= ========= ========= ========= =========
Total Investment Based on market price per share 4.96%+++ (.94%) 17.79% 5.26% (15.35%)
Return:*** ========= ========= ========= ========= =========
Based on net asset value per share 5.08%+++ 5.07% 10.51% 6.28% (9.92%)
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement** .99%* 1.01% 1.01% .99% .93%
Average Net ========= ========= ========= ========= =========
Assets of Total expenses** .99%* 1.01% 1.01% .99% .93%
Common Stock: ========= ========= ========= ========= =========
Total investment income--net** 8.00%* 7.97% 7.74% 8.35% 7.42%
========= ========= ========= ========= =========
Amount of dividends to Preferred Stock
shareholders .57%* .74% 1.63% 2.07% 1.11%
========= ========= ========= ========= =========
Investment income--net, to Common Stock
shareholders 7.43%* 7.23% 6.11% 6.28% 6.31%
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement .66%* .67% .68% .66% .65%
Average Net ========= ========= ========= ========= =========
Assets of Total expenses .66%* .67% .68% .66% .65%
Common & Preferred ========= ========= ========= ========= =========
Stock:** Total investment income--net 5.35%* 5.33% 5.20% 5.56% 5.17%
========= ========= ========= ========= =========
Ratios Based on Dividends to Preferred Stock shareholders 1.15%* 1.50% 3.33% 4.12% 2.55%
Average Net ========= ========= ========= ========= =========
Assets Of
Preferred Stock:
Supplemental Net assets applicable to Common Stock,
Data: end of period (in thousands) $ 598,018 $ 590,101 $ 524,737 $ 501,361 $ 506,030
========= ========= ========= ========= =========
Preferred Stock outstanding, end of
period (in thousands) $ 293,000 $ 293,000 $ 250,000 $ 250,000 $ 250,000
========= ========= ========= ========= =========
Portfolio turnover 23.17% 104.63% 83.26% 103.44% 78.42%
========= ========= ========= ========= =========
Leverage: Asset coverage per $1,000 $ 3,041 $ 3,014 $ 3,099 $ 3,005 $ 3,024
========= ========= ========= ========= =========
Dividends Series A--Investment income--net $ 136 $ 346 $ 816 $ 1,052 $ 588
Per Share on ========= ========= ========= ========= =========
Preferred Stock Series B--Investment income--net $ 164 $ 369 $ 864 $ 1,009 $ 595
Outstanding: ========= ========= ========= ========= =========
Series C--Investment income--net $ 134 $ 353 $ 847 $ 1,032 $ 687
========= ========= ========= ========= =========
Series D--Investment income--net $ 152 $ 504 $ 850 $ 1,035 $ 694
========= ========= ========= ========= =========
Series E--Investment income--net $ 133 $ 346 $ 805 $ 1,038 $ 627
========= ========= ========= ========= =========
Series F--Investment income--net $ 141 $ 324++ -- -- --
========= ========= ========= ========= =========
*Annualized.
**Do not reflect the effect of dividends to Preferred Stock
shareholders.
***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 charges.
++Series F was issued on November 19, 2001.
++++Certain prior year amounts have been reclassified to conform to
current year presentation.
+++Aggregate total investment return.
+++++Based on average shares outstanding.
See Notes to Financial Statements.
MuniYield Fund, Inc., April 30, 2003
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield 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
conformity with accounting principles generally accepted in the
United States of America, which may require the use of management
accruals and estimates. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary
to a fair statement of the results for the interim period presented.
All such adjustments are of a normal, recurring nature. The Fund
determines and makes available for publication the net asset value
of its Common Stock on a weekly basis. The Fund's Common Stock is
listed on the New York Stock Exchange under the symbol MYD. 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 price 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-counter-market, valuation is the last asked price
(options written) or the last bid price (options purchased).
Securities with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value.
Securities and assets for which market quotations are not readily
available are valued at their fair value as determined in good faith
by or under the direction of the Board of 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 investment strategies both to increase the return of the
Fund and to hedge, or protect, its exposure to interest rate
movement and movements in the securities markets. Losses may arise
due to changes in the value of the contract or if the counterparty
does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts.
Futures contracts are contracts for delayed delivery of securities
at a specific future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which
the transaction is effected. Pursuant to the contract, the Fund
agrees to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund
as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--The Fund is authorized to enter into
forward interest rate swaps. In a forward interest rate swap, the
Fund and the counterparty agree to pay or receive interest on a
specified notional contract amount, commencing on a specified future
effective date, unless terminated earlier. The value of the
agreement is determined by quoted fair values received daily by the
Fund from the counterparty. When the agreement is closed, the Fund
records a realized gain or loss in an amount equal to the value of
the agreement.
(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). Realized gains and losses on security
transactions are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend dates. Interest income is
recognized on the accrual basis. The Fund amortizes all premiums and
discounts on debt securities.
(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 .50% of
the Fund's average weekly net assets, including proceeds from the
issuance of Preferred Stock. For the six months ended April 30,
2003, FAM reimbursed the Fund in the amount of $559.
For the six months ended April 30, 2003, the Fund reimbursed FAM
$9,973 for certain accounting services.
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 six months ended April 30, 2003 were $197,753,648 and
$232,639,278, respectively.
Net realized losses for the six months ended April 30, 2003 and net
unrealized gains (losses) as of April 30, 2003 were as follows:
Realized Unrealized
Losses Gains (Losses)
Long-term investments $ (3,122,981) $ 31,065,539
Financial futures contracts (1,354,485) --
Forward interest rate swaps (3,517,115) (1,092,731)
------------- -------------
Total $ (7,994,581) $ 29,972,808
============= =============
As of April 30, 2003, net unrealized appreciation for Federal income
tax purposes aggregated $31,364,239, of which $53,770,754 related to
appreciated securities and $22,406,515 related to depreciated
securities. The aggregate cost of investments at April 30, 2003 for
Federal income tax purposes was $833,669,968.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of 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 stock
without approval of the holders of Common Stock.
Common Stock
Shares issued and outstanding during the six months ended April 30,
2003 remained constant and for the year ended October 31, 2002
increased by 5,508,830 as a result of issuance of Common Stock from
reorganization and 207,485 as a result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are redeemable shares of
Preferred Stock of the Fund, with a par value of $.05 per share and
a liquidation preference of $25,000 per share, plus accrued and
unpaid dividends, that entitle their holders to receive cash
dividends at an annual rate that may vary for the successive
dividend periods. The yields in effect at April 30, 2003 were as
follows: Series A, .949%; Series B, 1.15%; Series C, .965%; Series
D, 1.05%; Series E, 1.15% and Series F, 1.15%.
MuniYield Fund, Inc., April 30, 2003
NOTES TO FINANCIAL STATEMENTS (concluded)
Shares issued and outstanding during the six months ended April 30,
2003 remained constant and during the year ended October 31, 2002
increased by 1,720 as a result of issuance of Preferred Stock from
reorganization.
The Fund pays commissions to certain broker-dealers at the end
of each auction at an annual rate ranging from .25% to .375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 2003, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $180,919 as commissions.
5. Capital Loss Carryforward:
On October 31, 2002, the Fund had a net capital loss carryforward of
$65,766,287, of which $3,822,310 expires in 2006, $14,903,466
expires in 2007, $40,851,001 expires in 2008, $6,000,235 expires in
2009 and $189,275 expires in 2010. This amount will be available to
offset like amounts of any future taxable gains.
6. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common
Stock in the amount of $.078000 per share on May 29, 2003 to
shareholders of record on May 16, 2003.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its
net investment income to its shareholders on a monthly basis. 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 Net
Assets, which comprises part of the Financial Information included
in this report.
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 2003
were as follows:
Percent of
S&P Rating/Moody's Rating Total Investments
AAA/Aaa 37.6%
AA/Aaa 12.3
A/A 16.6
BBB/Baa 8.8
BB/Ba 7.4
B/B 1.2
CCC/Caa 1.4
NR (Not Rated) 12.7
Other* 2.0
*Temporary investments in short-term municipal securities.
MuniYield Fund, Inc., April 30, 2003
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
James H. Bodurtha, Director
Joe Grills, Director
Herbert I. London, Director
Andre F. Perold, Director
Roberta Cooper Ramo, Director
Robert S. Salomon, Jr., Director
Stephen B. Swensrud, Director
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Roberto W. Roffo, Vice President
Donald C. Burke, Vice President and Treasurer
Brian D. Stewart, Secretary
Melvin R. Seiden, Director of MuniYield Fund, Inc., has recently
retired. The Fund's Board of Directors wishes Mr. Seiden well in his
retirement.
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100Church Street
New York, NY 10286
NYSE Symbol
MYD
Item 2 - Did registrant adopt a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party? If not, why not? Briefly describe
any amendments or waivers that occurred during the period. State
here if code of ethics/amendments/waivers are on website and give
website address-. State here if fund will send code of ethics to
shareholders without charge upon request--N/A (not answered until
July 15, 2003 and only annually for funds)
Item 3 - Did the registrant's board of directors determine that the
registrant either: (i) has at least one audit committee financial
expert serving on its audit committee; or (ii) does not have an
audit committee financial expert serving on its audit committee? If
yes, disclose name of financial expert and whether he/she is
"independent," (fund may, but is not required, to disclose
name/independence of more than one financial expert) If no, explain
why not. -N/A (not answered until July 15, 2003 and only annually
for funds)
Item 4 - Disclose annually only (not answered until December 15,
2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of
the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the
last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs
(a) through (c) of this Item. Registrants shall describe the nature
of the services comprising the fees disclosed under this category.
N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X. N/A.
(e)(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-
3 under the Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act regarding an exemption from the listing
standards for audit committees.
(Listed issuers must be in compliance with the new listing rules by
the earlier of their first annual shareholders meeting after January
2004, or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in
their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio
securities. N/A (not answered until July 1, 2003)
Item 8--Reserved
Item 9(a) - The registrant's certifying officers have reasonably
designed such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b)--There were no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of
ethics or amendments/waivers is on website or offered to
shareholders upon request without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the
Sarbanes-Oxley Act. Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MuniYield Fund, Inc.
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield Fund, Inc.
Date: June 23, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
MuniYield Fund, Inc.
Date: June 23, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Fund, Inc.
Date: June 23, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.