UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-6502
Name of Fund: MuniYield Florida Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield Florida Fund, 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: 10/31/04
Date of reporting period: 11/01/03 - 04/30/04
Item 1 - Report to Stockholders
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
MuniYield Florida Fund
Semi-Annual Report
April 30, 2004
MuniYield Florida Fund 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
municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from Federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible
personal property taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield Florida Fund 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 Shares and intends to
remain leveraged by issuing Preferred Shares to provide the Common
Shareholders with a potentially higher rate of return. Leverage
creates risks for Common Shareholders, including the likelihood of
greater volatility of net asset value and market price of shares of
the Common Shares, and the risk that fluctuations in the short-term
dividend rates of the Preferred Shares may affect the yield to
Common Shareholders. Statements and other information herein are as
dated and are subject to change.
A description of the policies and procedures that the Fund uses to
determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling toll-free
1-800-MER-FUND (1-800-637-3863); (2) on www.mutualfunds.ml.com;
and (3) on the Securities and Exchange Commission's website at
http://www.sec.gov.
MuniYield Florida Fund
Box 9011
Princeton, NJ
08543-9011
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MuniYield Florida Fund
The Benefits and Risks of Leveraging
MuniYield Florida Fund utilizes leveraging to seek to enhance the
yield and net asset value of its Common Shares. However, these
objectives cannot be achieved in all interest rate environments. To
leverage, the Fund issues Preferred Shares, which pay dividends at
prevailing short-term interest rates, and invests the proceeds in
long-term municipal bonds. The interest earned on these investments,
net of dividends to Preferred Shares, is paid to Common Shareholders
in the form of dividends, and the value of these portfolio holdings
is reflected in the per share net asset value of the Fund's Common
Shares. However, in order to benefit Common Shareholders, the yield
curve must be positively sloped; that is, short-term interest rates
must be lower than long-term interest rates. At the same time, a
period of generally declining interest rates will benefit Common
Shareholders. If either of these conditions change, then the risks
of leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Share
capitalization of $100 million and the issuance of Preferred Shares
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-
term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Shares based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Shares.
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the
Common Shares will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Shares (that is, its
price as listed on the New York Stock Exchange) may, as a result,
decline. Furthermore, if long-term interest rates rise, the Common
Shares' net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Shares does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Shares may
also decline.
As a part of its investment strategy, the Fund may invest in certain
securities whose potential income return is inversely related to
changes in a floating interest rate ("inverse floaters"). In
general, income on inverse floaters will decrease when short-term
interest rates increase and increase when short-term interest rates
decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of
providing investment leverage and, as a result, the market value of
such securities will generally be more volatile than that of fixed-
rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than
if the Fund did not invest in these securities. As of April 30,
2004, the percentage of the Fund's total net assets invested in
inverse floaters was 9.74%.
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 FLORIDA FUND, APRIL 30, 2004
A Letter From the President
Dear Shareholder
For the six-month and 12-month periods ended April 30, 2004, the
Lehman Brothers Municipal Bond Index posted returns of +1.19% and
+2.68%, respectively. Its taxable counterpart, the Lehman Brothers
Aggregate Bond Index, had returns of +1.25% and +1.82% for the same
respective periods. Amid considerable month-to-month volatility, tax-
exempt bond yields rose over the past year, although not to the same
extent as 10-year U.S. Treasury yields. In all, tax-exempt
securities continued to be an attractive fixed income investment
alternative.
As of April month-end, the Federal Reserve Board maintained its
accommodative policy stance, although a better-than-expected
employment report for the month of March prompted speculation that
an interest rate increase could come sooner than many had expected.
On April 2, 2004, the good news on the employment front - previously
the one dim spot in an otherwise bright economic picture - helped
prompt the yield on the 10-year Treasury bond to spike nearly 25
basis points (.25%), from 3.91% to 4.15%. Market watchers continue
to monitor the economic data and Federal Reserve Board language for
indications of interest rate direction. If economic growth maintains
its recent pace and employment figures continue to improve, many
believe it is just a matter of time before interest rates move
upward.
Equity markets, in the meantime, gleaned support from the improving
economic environment and provided attractive returns. For the
six-month and 12-month periods ended April 30, 2004, the Standard &
Poor's 500 Index returned +6.27% and +22.88%, respectively.
Significant fiscal and monetary stimulus in 2003, including low
interest rates and tax cuts, has opened the door to consumer
spending, capital spending, increases in exports and long-awaited
job growth. As expected, these developments have led the way to
improvements in corporate earnings - a positive for stock markets.
The events and efforts of the past year leave us with a much
stronger economy today. Of course, markets will always fluctuate,
and there are many uncertainties - not the least of which are
geopolitical in nature - which can translate into negative market
movements. Keeping this in mind, we encourage you to revisit your
portfolio and your asset allocation strategy to ensure you are well
positioned to take advantage of the opportunities that lie ahead.
Importantly, your financial advisor can help you develop a strategy
most suitable for your circumstances through all types of market and
economic cycles.
We thank you for trusting Merrill Lynch Investment Managers with
your investment assets, and we look forward to serving you in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
A Discussion With Your Fund's Portfolio Manager
Our strategy has been and continues to be focused on increasing the
Fund's yield while protecting net asset value in what has been a
volatile interest rate environment.
Describe the recent market environment relative to municipal bonds.
For much of the six-month period, a positive economic backdrop
helped bond prices to move higher as yields, which typically move
opposite of prices, declined. In early April, however, a
surprisingly strong monthly employment report triggered fears that
the long-accommodative Federal Reserve Board might raise interest
rates sooner than many had expected. As a result, bond yields rose
(prices fell) sharply for the remainder of the period. At the end of
April, long-term U.S. Treasury bond yields had climbed to 5.13%,
representing an increase of approximately 15 basis points (.15%)
over the past six months. Ten-year U.S. Treasury note yields stood
at 4.30% as of period end, an increase of more than 20 basis points.
Tax-exempt bond yields generally mimicked the movement of their
taxable counterparts, although volatility in the municipal market
was more subdued. Long-term revenue bond yields, as measured by the
Bond Buyer Revenue Bond Index, rose just four basis points over the
past six months. For the same period, yields on AAA-rated issues
maturing in 30 years increased approximately 10 basis points to
4.93% while yields on 10-year, AAA-rated issues increased more than
16 basis points to nearly 4%, according to Municipal Market Data.
The more marked increase in 10-year bond yields may be attributed to
the fact that recent issuance has been heavily concentrated in the
10-year - 20-year range. The resulting supply imbalance prompted
higher intermediate bond yields (and lower prices). Longer-maturity
and lower-rated issues continued to benefit from more favorable
supply/demand factors and, therefore, have seen less price
depreciation. For the six-month period as a whole, municipal bond
supply declined approximately 5% compared to the same period a year
ago.
While investor enthusiasm for stocks has taken some attention away
from fixed income markets, overall demand for tax-exempt municipal
bonds has remained positive. Recent Federal Reserve Board statistics
showed that U.S. household holdings of municipal securities
increased by more than $25 billion during the fourth quarter of 2003
to approximately $680 billion. In addition, data from the Investment
Company Institute indicates that, in just the first three months of
2004, tax-exempt bond funds have seen net new cash flows of almost
$640 million.
Describe conditions in the State of Florida.
Overall, conditions in Florida remained favorable. The state
maintained solid credit ratings of Aa2 from Moody's, AA+ from
Standard & Poor's and AA from Fitch. All three rating agencies held
a stable outlook for Florida's finances. This was based on an
improving and diverse economy, solid finances, moderate debt and a
proactive government that responds to economic downturns quicker
than other states.
Florida's economy is bolstered by strong population growth, which is
attributed to its attractive physical environment and favorable
business climate. The population growth is one reason Florida's
economy typically has performed better than the national economy.
Although the growth in population has put a strain on services such
as education, transportation and health care, it also has allowed
the state to recover quickly from the recent sub-par economic
trends.
Currently, the state's revenues are modestly higher than projected
and expenditures remain under control due to strong fiscal
oversight. The fiscal year 2004 budget was pressured by only modest
revenue increases, but was brought into balance through tight
expenditure controls, including outsourcing work and requiring local
governments to pick up costs historically incurred by the state. To
pay for these additional expenses, municipalities imposed increases
to property taxes and/or local sales taxes through voter
initiatives.
Florida continues to maintain sound and solid fund balances with
consistent General Fund operations. In addition, the state has a
working Capital Reserve Fund and a Budget Stabilization Fund in
excess of $1.8 billion. Our strategy in purchasing Florida issues
has been to favor insured general obligation bonds and their
equivalents rather than uninsured bonds. We believe this is a
prudent approach, as there is no meaningful yield offered in
exchange for the additional risk associated with uninsured bonds.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
How did the Fund perform during the period in light of the existing
market conditions?
For the six-month period ended April 30, 2004, the Common Shares of
MuniYield Florida Fund had net annualized yields of 6.29% and 7.07%,
based on a period-end per share net asset value of $14.73 and a per
share market price of $13.11, respectively, and $.462 per share
income dividends. Over the same period, the total investment return
on the Fund's Common Shares was +1.62%, based on a change in per
share net asset value from $14.97 to $14.73, and assuming
reinvestment of $.462 per share ordinary income dividends.
For the six-month period ended April 30, 2004, the Fund's Auction
Market Preferred Shares (AMPS) had an average yield of .89% for
Series A and .95% for Series B.
The Fund's return, based on net asset value, lagged the +1.78%
average return of its comparable Lipper category of Florida
Municipal Debt Funds for the six-month period ended April 30, 2004.
(Funds in this Lipper category limit their investment to securities
exempt from taxation in Florida or a city in Florida). While our
overall strategy has been to favor issues with longer maturities,
the Fund does hold a fair amount of pre-refunded bonds in the
one-year - 10-year maturity range. This sector of the yield curve
was hard hit during the past six months, and this portion of the
portfolio detracted from overall returns. On a positive note, the
Fund's yield remains competitive.
For a description of the Fund's total investment return based on a
change in the per share market value of the Fund's Common Shares (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 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 market
value of the Fund's Common Shares can vary significantly from total
investment return based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We made no significant changes to the portfolio or our investment
strategy in the past six months. We maintained our focus on
increasing the income provided to shareholders and muting the Fund's
net asset value volatility. The most volatile part of the yield
curve during the period continued to be the 10-year - 15-year
sector. During periods of sustained strength in the bond market, we
sought to reduce some of our holdings in this maturity range. With
the proceeds from the sales, we looked to purchase premium-coupon
bonds in the 20-year - 30-year maturity range whenever they became
available. Our observations and research reveal that the longer end
of the yield curve has held firm. As such, this is where we have
found the greatest value. By taking advantage of the steep yield
curve, we have been able to increase the Fund's yield while muting
its price volatility.
In terms of leverage, the Fund's borrowing costs generally remained
around 1% throughout the period. The attractive funding levels, in
combination with a steep tax-exempt yield curve, continued to
generate a significant income benefit to the Fund's Common
Shareholders. At this point, the Federal Reserve Board appears
poised to begin raising short-term interest rates, most likely later
in 2004. The increase, however, is expected to be gradual and is not
likely to have a material impact on the positive advantage leverage
has had on the yield of the Fund's Common Shares. We expect short-
term borrowing costs to remain near 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
Shares. At the end of the period, the Fund's leverage amount, due to
AMPS, was 32.25% of total assets. (For a complete explanation of the
benefits and risks of leveraging, see page 2 of this report to
shareholders.)
How would you characterize the portfolio's position at the close of
the period?
In our view, the municipal market will continue to be volatile over
the next few months. Should interest rates continue to decline, we
intend to shift to a more defensive position to prepare the Fund to
outperform when interest rates eventually head higher. As long as
the municipal yield curve remains steep, we will continue to sell
the intermediate part of the curve and use periods of volatility to
structure higher-coupon bonds whenever they are attractively priced.
Robert D. Sneeden
Vice President and Portfolio Manager
May 11, 2004
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Proxy Results
During the six-month period ended April 30, 2004, MuniYield Florida
Fund's Common Shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2004.
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 Trustees: James H. Bodurtha 12,826,118 145,075
Joe Grills 12,811,465 159,728
Roberta Cooper Ramo 12,826,918 144,275
Robert S. Salomon, Jr. 12,826,918 144,275
Stephen B. Swensrud 12,818,746 152,447
During the six-month period ended April 30, 2004, MuniYield Florida
Fund Preferred Shareholders (Series A & B) voted on the following
proposal. The proposal was approved at a shareholders' meeting on
April 27, 2004. 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 Trustees: James H. Bodurtha,
Joe Grills, Herbert I. London, Andre F. Perold,
Roberta Cooper Ramo, Robert S. Salomon, Jr., and
Stephen B. Swensrud 3,196 78
Quality Profile
The quality ratings of securities in the Fund as of April 30, 2004
were as follows:
Percent of
Total
S&P Rating/Moody's Rating Investments
AAA/Aaa 62.9%
AA/Aa 9.5
A/A 10.4
BBB/Baa 11.7
NR (Not Rated) 5.5
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Schedule of Investments (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida--127.9%
AA NR* $ 2,000 Beacon Tradeport Community Development District, Florida, Special
Assessment Revenue Refunding Bonds (Commercial Project), Series A,
5.625% due 5/01/2032 (g) $ 2,087
AAA Aaa 7,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40%
due 10/01/2024 (a) 7,932
AAA Aaa 2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I,
5.75% due 10/01/2018 (a) 3,095
BBB Baa2 1,000 Broward County, Florida, Educational Facilities Authority Revenue
Bonds (Nova Southeastern University), Series B, 5.625% due 4/01/2034 990
Citrus County, Florida, Hospital Board Revenue Refunding Bonds
(Citrus Memorial Hospital):
NR* Baa3 2,480 6.25% due 8/15/2023 2,548
NR* Baa3 2,850 6.375% due 8/15/2032 2,920
NR* NR* 2,610 Collier County, Florida, IDA, IDR, Refunding (Southern States
Utilities), AMT, 6.50% due 10/01/2025 2,529
Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT (d)(i):
NR* Aaa 60 6.20% due 4/01/2020 (b) 61
NR* Aaa 2,745 5.40% due 10/01/2021 2,820
AAA Aaa 2,530 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, 7% due 4/01/2028 (d)(i) 2,609
NR* Aaa 7,170 Escambia County, Florida, Health Facilities Authority, Health
Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%
due 7/01/2020 (a) 7,479
BBB Baa2 8,295 Escambia County, Florida, PCR (Champion International Corporation
Project), AMT, 6.90% due 8/01/2022 8,546
AAA Aaa 960 Florida Housing Finance Corporation, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (e) 997
AAA Aaa 4,250 Florida Municipal Loan Council Revenue Bonds, Series B, 5.375% due
11/01/2030 (b) 4,394
AA+ Aa2 1,220 Florida State Board of Education, Capital Outlay, GO, Series A, 6%
due 1/01/2014 1,382
AAA Aaa 1,000 Florida State Board of Education, Lottery Revenue Bonds, Series A,
6% due 7/01/2014 (c) 1,138
AA+ Aa2 5,000 Florida State Board of Education, Public Education, Capital Outlay,
GO, Refunding, Series D, 5.375% due 6/01/2018 5,364
Florida State Governmental Utility Authority, Utility Revenue
Bonds (a):
AAA Aaa 1,080 (Citrus Utility System), 5.125% due 10/01/2033 1,090
AAA Aaa 1,750 (Lehigh Utility System), 5.125% due 10/01/2028 1,774
AAA Aaa 1,000 (Lehigh Utility System), 5.125% due 10/01/2033 1,009
AA Aa2 1,075 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 5.25%
due 10/01/2022 1,126
A A3 5,900 Highlands County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System), Series A, 6% due 11/15/2031 6,186
AAA Aaa 5,000 Hillsborough County, Florida, Court Facilities Revenue Bonds,
5.40% due 5/01/2030 (a) 5,152
Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds
(National Gypsum), AMT:
NR* NR* 2,500 Series A, 7.125% due 4/01/2030 2,665
NR* NR* 3,750 Series B, 7.125% due 4/01/2030 3,998
A A3 1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee
Moffitt Cancer Center Project), Series C, 5.50% due 7/01/2032 1,005
Portfolio Abbreviations
To simplify the listings of MuniYield Florida Fund's portfolio
holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Schedule of Investments (continued) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida (continued)
NR* Baa1 $ 1,725 Hillsborough County, Florida, IDA, Hospital Revenue Refunding Bonds
(Tampa General Hospital Project), Series A, 5.25% due 10/01/2024 $ 1,706
AAA Aaa 4,000 Hillsborough County, Florida, School District, Sales Tax Revenue
Refunding Bonds, 5.375% due 10/01/2020 (a) 4,264
AA- Aa2 2,000 Jacksonville Electric Authority, Florida, Electric System Revenue
Bonds, Series 3-A, 5.375% due 10/01/2032 2,013
AA- Aa3 14,800 Jacksonville Electric Authority, Florida, Water and Sewer System
Revenue Bonds, Series C, 5.25% due 10/01/2037 14,837
AAA Aaa 2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and
Improvement Bonds, 5.25% due 10/01/2032 (c) 2,368
AAA Aaa 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional
Health System), Series A, 5.50% due 11/15/2026 (b) 3,596
NR* Aaa 135 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series A-1, 7.125% due 3/01/2028 (d)(i) 140
AAA NR* 345 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series B, 7.30% due 1/01/2028 (d)(j) 354
NR* Aaa 445 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,
Sub-Series 2, 7.75% due 5/01/2026 (d)(j) 447
NR* Aaa 740 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, Sub-Series 1, 6.25% due 11/01/2028 (d) 757
Martin County, Florida, Health Facilities Authority, Hospital Revenue
Bonds (Martin Memorial Medical Center), Series A:
BBB+ NR* 1,350 5.75% due 11/15/2022 1,358
BBB+ NR* 3,430 5.875% due 11/15/2032 3,431
AAA Aaa 3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due
9/01/2025 (a) 3,231
Miami-Dade County, Florida, Aviation Revenue Bonds (Miami
International Airport), AMT, Series A (c):
AAA Aaa 4,300 6% due 10/01/2029 4,617
AAA Aaa 5,385 5% due 10/01/2033 5,255
AAA Aaa 1,750 5% due 10/01/2036 1,697
Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A (e):
AAA Aaa 2,180 5% due 10/01/2033 2,127
AAA Aaa 1,650 5.125% due 10/01/2035 1,635
AAA Aaa 1,750 Miami-Dade County, Florida, Educational Facilities Authority Revenue
Bonds (University of Miami), Series A, 5.75% due 4/01/2029 (a) 1,881
AAA Aaa 8,000 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue
Bonds, DRIVERS, Series 160, 9.49% due 07/01/2010 (c)(f)(k) 10,856
NR* Aaa 765 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue
Refunding Bonds, AMT, Series A-1, 6.30% due 10/01/2020 (d)(i) 800
AAA NR* 3,300 Miami-Dade County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds, DRIVERS, Series 208, 9.867% due
8/15/2017 (a)(k) 3,845
Miami-Dade County, Florida, School Board COP (e):
AAA Aaa 3,200 Series A, 5.50% due 10/01/2020 3,468
AAA Aaa 1,635 Series C, 5.50% due 10/01/2017 1,772
AAA Aaa 1,000 Miami-Dade County, Florida, Special Obligation Revenue Bonds
(Juvenile Courthouse Project), Series A, 5% due 4/01/2035 (a) 995
AAA Aaa 1,000 Ocoee, Florida, Water and Sewer System Revenue Refunding and
Improvement Bonds, 5.125% due 10/01/2033 (a) 1,009
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Schedule of Investments (continued) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida (concluded)
Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds:
A A3 $ 1,750 (Adventist Health System), 6.25% due 11/15/2024 $ 1,882
A- A2 5,140 (Orlando Regional Healthcare), 6% due 12/01/2028 5,378
A- A2 1,300 (Orlando Regional Healthcare), 5.75% due 12/01/2032 1,328
NR* Aaa 10,500 Orange County, Florida, School Board, COP, Series A, 5.25% due
8/01/2023 (b) 10,861
AAA Aaa 8,615 Orange County, Florida, Tourist Development, Tax Revenue Bonds,
5.50% due 10/01/2032 (a) 8,957
Orlando and Orange County, Florida, Expressway Authority Revenue
Bonds, Series B (a):
AAA Aaa 6,000 5% due 7/01/2028 6,010
AAA Aaa 1,000 5% due 7/01/2030 1,000
AAA Aaa 1,800 5% due 7/01/2035 1,790
AA Aa1 1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue
Refunding Bonds, Series C, 5.25% due 10/01/2023 1,038
NR* Aaa 1,955 Osceola County, Florida, School Board, COP, Series A, 5.25% due
6/01/2027 (a) 2,009
AAA Aaa 1,760 Osceola County, Florida, Tourist Development Tax Revenue Bonds,
Series A, 5.50% due 10/01/2027 (c) 1,831
AAA Aaa 3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (c) 4,273
NR* Aaa 250 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series A, 6.80% due 10/01/2027 (d)(i) 256
A NR* 1,010 Palm Beach County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Branch Corporation Obligation Group), 5.50%
due 12/01/2021 1,027
AAA Aaa 1,260 Palm Beach County, Florida, Public Improvement Revenue Bonds
(Convention Center Project), 5.625% due 11/01/2011 (c)(f) 1,432
AAA Aaa 6,000 Palm Beach County, Florida, School Board, COP, Series A, 6.25%
due 8/01/2010 (c)(f) 7,036
AAA Aaa 1,000 Pasco County, Florida, Sales Tax Revenue Bonds (Half-Cent), 5% due
12/01/2033 (a) 995
Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds
(Multi-County Program), AMT, Series A-1 (d)(i):
NR* Aaa 825 6.30% due 9/01/2020 849
NR* Aaa 1,265 6.35% due 9/01/2025 1,302
NR* A1 3,000 Pinellas County, Florida, Health Facilities Authority Revenue Bonds
(BayCare Health System Inc.), 5.75% due 11/15/2029 3,094
AAA Aaa 4,385 Polk County, Florida, School Board COP, Master Lease, Series A,
5.50% due 1/01/2025 (e) 4,608
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due
11/01/2016 (h) 1,477
NR* Aaa 1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due
9/01/2025 (b) 1,257
AAA Aaa 2,175 Saint Lucie County, Florida, School Board, COP (Master Lease Program),
Series A, 5% due 7/01/2028 (e) 2,167
AAA NR* 4,250 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS,
Series 337, 9.832% due 5/01/2032 (b)(k) 4,798
South Lake County, Florida, Hospital District Revenue Bonds
(South Lake Hospital Inc.):
A- A2 1,000 5.80% due 10/01/2034 1,016
NR* Baa3 1,150 6.375% due 10/01/2034 1,159
AAA Aaa 5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75% due
10/01/2011 (c)(f) 5,719
Village Center Community Development District, Florida, Utility
Revenue Bonds (b):
AAA Aaa 5,040 5.125% due 10/01/2028 5,113
AAA Aaa 1,000 5% due 10/01/2036 980
AAA Aaa 5,000 Volusia County, Florida, School Board, COP (Master Lease Program),
5.50% due 8/01/2024 (e) 5,276
New Jersey--0.5%
BBB Baa3 1,000 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds,
7% due 6/01/2041 980
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Schedule of Investments (concluded) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Puerto Rico--14.7%
Children's Trust Fund Project of Puerto Rico, Tobacco Settlement
Revenue Refunding Bonds:
BBB Baa3 $ 3,230 5.375% due 5/15/2033 $ 3,038
BBB Baa3 1,600 5.50% due 5/15/2039 1,481
AAA NR* 7,500 Puerto Rico Commonwealth, GO, Refunding, DRIVERS, Series 232,
9.657% due 7/01/2017 (k)(l) 9,183
A Baa1 8,000 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, Series D, 5.75% due 7/01/2041 8,445
A- A3 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series T,
6.0% due 7/01/2004 (f) 1,028
BBB+ Baa3 4,250 Puerto Rico Public Finance Corporation, Commonwealth Appropriation
Revenue Bonds, Series E, 5.50% due 8/01/2029 4,337
BBB+ Baa3 1,715 Puerto Rico Public Finance Corporation Revenue Bonds, Commonwealth
Appropriation, Series E, 5.70% due 8/01/2025 1,797
Total Municipal Bonds (Cost--$275,392)--143.1% 285,562
Shares
Held Short-Term Securities
6,930 Merrill Lynch Institutional Tax-Exempt Fund (m) 6,930
Total Short-Term Securities (Cost $6,930)--3.5% 6,930
Total Investments (Cost--$282,322)--146.6% 292,492
Other Assets Less Liabilities--1.0% 2,077
Preferred Shares, at Redemption Value--(47.6%) (95,000)
---------
Net Assets Applicable to Common Stock--100.0% $ 199,569
=========
*Not Rated.
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FSA Insured.
(f)Prerefunded.
(g)Radian Insured.
(h)Escrowed to maturity.
(i)FNMA Collateralized.
(j)FHLMC Collateralized.
(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, 2004.
(l)XL Capital Insured.
(m)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 (6,300) $30
Forward interest rate swaps entered into as of April 30, 2004 were
as follows:
(in Thousands)
Notional Unrealized
Amount Appreciation
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate equal to 3.581%
Broker, J.P. Morgan Chase Bank
Expires May 2014 $23,300 $464
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate equal to 3.744%
Broker, J.P. Morgan Chase Bank
Expires July 2014 $11,400 136
----
Total $600
====
See Notes to Financial Statements.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Statement of Net Assets
As of April 30, 2004
Assets
Investments in unaffiliated securities, at value
(identified cost--$275,391,711) $ 285,561,933
Investments in affiliated securities, at value (cost--$6,929,793) 6,929,793
Cash 1,025,368
Unrealized appreciation on forward interest rate swaps 600,412
Receivables:
Interest $ 4,173,139
Securities sold 831,676
Dividends from affiliates 168 5,004,983
---------------
Prepaid expenses 6,215
---------------
Total assets 299,128,704
---------------
Liabilities
Payables:
Securities purchased 4,304,571
Investment adviser 140,466
Dividends to Common Shareholders 67,887
Other affiliates 2,077 4,515,001
---------------
Accrued expenses 44,369
---------------
Total liabilities 4,559,370
---------------
Preferred Shares
Preferred Shares, at redemption value, par value $.05 per share
(2,200 Series A Shares and 1,600 Series B Shares of AMPS* issued and
outstanding at $25,000 per share liquidation preference) 95,000,000
---------------
Net Assets Applicable to Common Shares
Net assets applicable to Common Shares $ 199,569,334
===============
Analysis of Net Assets Applicable to Common Shares
Common Shares at redemption value, par value $.10 per share
(13,551,880 shares issued and outstanding) $ 1,355,188
Paid-in capital in excess of par 194,722,663
Undistributed investment income--net $ 3,303,198
Accumulated realized capital losses on investments--net (10,582,349)
Unrealized appreciation on investments--net 10,770,634
---------------
Total accumulated earnings--net 3,491,483
---------------
Total--Equivalent to $14.73 net asset value per Common Share
(market price--$13.11) $ 199,569,334
===============
*Auction Market Preferred Shares.
See Notes to Financial Statements.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Statement of Operations
For the Six Months Ended April 30, 2004
Investment Income
Interest $ 7,744,395
Dividends from affiliates 30,105
---------------
Total income 7,774,500
---------------
Expenses
Investment advisory fees $ 751,705
Commission fees 120,974
Accounting services 56,424
Professional fees 29,139
Transfer agent fees 28,306
Printing and shareholder reports 23,898
Listing fees 10,666
Custodian fees 9,434
Trustees' fees and expenses 8,040
Pricing fees 6,009
Other 19,418
---------------
Total expenses before reimbursement 1,064,013
Reimbursement of expenses (7,263)
---------------
Total expenses after reimbursement 1,056,750
---------------
Investment income--net 6,717,750
---------------
Realized & Unrealized Loss on Investments--Net
Realized loss on investments--net (307,158)
Change in unrealized appreciation on investments--net (3,037,180)
---------------
Total realized and unrealized loss on investments--net (3,344,338)
---------------
Dividends to Preferred Shareholders
Investment income--net (433,346)
---------------
Net Increase in Net Assets Resulting from Operations $ 2,940,066
===============
See Notes to Financial Statements.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2004 2003
Operations
Investment income--net $ 6,717,750 $ 14,402,506
Realized gain (loss) on investments--net (307,158) 955,774
Change in unrealized appreciation on investments--net (3,037,180) (2,016,147)
Dividends and distributions to Preferred Shareholders (433,346) (930,466)
--------------- ---------------
Net increase in net assets resulting from operations 2,940,066 12,411,667
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (6,260,968) (12,440,626)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (6,260,968) (12,440,626)
--------------- ---------------
Net Assets Applicable to Common Shares
Total decrease in net assets applicable to Common Shares (3,320,902) (28,959)
Beginning of period 202,890,236 202,919,195
--------------- ---------------
End of period* $ 199,569,334 $ 202,890,236
=============== ===============
*Undistributed investment income--net $ 3,303,198 $ 3,279,762
=============== ===============
See Notes to Financial Statements.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Financial Highlights
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001++++ 2000++++
Per Share Operating Performance
Net asset value, beginning of period $ 14.97 $ 14.97 $ 14.81 $ 13.78 $ 13.27
------------ ---------- ---------- ---------- ----------
Investment income--net .50+++ 1.06+++ 1.03 1.00 .95
Realized and unrealized gain (loss)
on investments--net (.25) (.07) .09 1.04 .59
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.03) (.07) (.09) (.22) (.28)
Realized gain on investments--net -- -- --++ -- --
------------ ---------- ---------- ---------- ----------
Total from investment operations .22 .92 1.03 1.82 1.26
------------ ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.46) (.92) (.87) (.79) (.75)
Realized gain on investments--net -- -- --++ -- --
------------ ---------- ---------- ---------- ----------
Total dividends and distributions to Common
Shareholders (.46) (.92) (.87) (.79) (.75)
------------ ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.73 $ 14.97 $ 14.97 $ 14.81 $ 13.78
============ ========== ========== ========== ==========
Market price per share, end of period $ 13.11 $ 13.80 $ 13.34 $ 13.98 $ 11.3125
============ ========== ========== ========== ==========
Total Investment Return**
Based on market price per share (1.89%)++++++++ 10.44% 1.77% 31.36% 2.82%
============ ========== ========== ========== ==========
Based on net asset value per share 1.62%++++++++ 6.76% 7.80% 14.24% 10.90%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement
and excluding reorganization expenses*** 1.02%* 1.04% 1.06% 1.06% 1.12%
============ ========== ========== ========== ==========
Total expenses, excluding reorganization
expenses*** 1.03%* 1.04% 1.06% 1.06% 1.12%
============ ========== ========== ========== ==========
Total expenses*** 1.03%* 1.04% 1.06% 1.06% 1.33%
============ ========== ========== ========== ==========
Total investment income--net*** 6.51%* 7.01% 7.00% 6.98% 7.39%
============ ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders .42%* .45% .64% 1.53% 2.10%
============ ========== ========== ========== ==========
Investment income--net, to Common Shareholders 6.09%* 6.56% 6.36% 5.45% 5.29%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common & Preferred Shares***
Total expenses, net of reimbursement and
excluding reorganization expenses .70%* .71% .72% .71% .74%
============ ========== ========== ========== ==========
Total expenses, excluding reorganization
expenses .71%* .71% .72% .71% .74%
============ ========== ========== ========== ==========
Total expenses .71%* .71% .72% .71% .87%
============ ========== ========== ========== ==========
Total investment income--net 4.46%* 4.79% 4.74% 4.69% 4.85%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders .91%* .97% 1.34% 3.14% 4.02%
============ ========== ========== ========== ==========
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Financial Highlights (concluded)
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2004 2003 2002 2001++++ 2000++++
Supplemental Data
Net assets applicable to Common Shares,
end of period (in thousands) $ 199,569 $ 202,890 $ 202,919 $ 200,729 $ 186,777
============ ========== ========== ========== ==========
Preferred Shares outstanding, end of
period (in thousands) $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ 95,000
============ ========== ========== ========== ==========
Portfolio turnover 10.49% 40.45% 39.54% 86.85% 51.16%
============ ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,101 $ 3,136 $ 3,136 $ 3,113 $ 2,966
============ ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding+++++
Series A--Investment income--net $ 111 $ 247 $ 337 $ 771 $ 1,006
============ ========== ========== ========== ==========
Series B--Investment income--net $ 118 $ 242 $ 333 $ 801 $ 738
============ ========== ========== ========== ==========
*Annualized.
**Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales charges.
***Do not reflect the effect of dividends to Preferred Shareholders.
++Amount is less than $(.01) per share.
++++Certain prior period amounts have been reclassified to conform
to current period presentation.
+++Based on average shares outstanding.
+++++The Fund's Preferred Shares were issued on April 10, 1992
(Series A) and February 7, 2000 (Series B).
++++++++Aggregate total investment return.
See Notes to Financial Statements.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield Florida Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended, 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. Actual results
may differ from these estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal,
recurring nature. The Fund determines and makes available for
publication the net asset value of its Common Shares on a weekly
basis. The Fund's Common Shares are listed on the New York Stock
Exchange under the symbol MYF. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the last available
bid price in the over-the-counter markets or on the basis of yield
equivalents as obtained by the Fund's pricing service from one or
more 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). Swap
agreements are valued by quoted fair values received daily by the
Fund from the counterparty. Short-term investments with a remaining
maturity 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
Trustee's of the Fund, including valuations furnished by a pricing
service retained by the Fund, which may utilize a matrix system for
valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general
supervision of the Board of Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies both to increase the return of the
Fund and to hedge, or protect, its exposure to interest rate
movements 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 may purchase and write call and 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.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Notes to Financial Statements (continued)
* Forward interest rate swaps--The Fund may enter into forward
interest rate swaps. In a forward interest rate swap, the Fund and
the counterparty agree to make periodic net payments on a specified
notional contract amount, commencing on a specified future effective
date, unless terminated earlier. 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. Divided
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 Shares. For the six months ended April 30,
2004, FAM reimbursed the Fund in the amount of $7,263.
For the six months ended April 30, 2004, the Fund reimbursed FAM
$3,089 for certain accounting services.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 2004 were $38,176,914 and
$30,035,813, respectively.
Net realized gains (losses) for the six months ended April 30, 2004
and net unrealized appreciation as of April 30, 2004 were as
follows:
Realized Unrealized
Gains (Losses) Appreciation
Long-term investments $ 564,105 $ 10,170,222
Forward interest rate swaps (871,263) 600,412
-------------- --------------
Total $ (307,158) $ 10,770,634
============== ==============
As of April 30, 2004, net unrealized appreciation for Federal income
tax purposes aggregated $10,040,993, of which $11,317,487 related to
appreciated securities and $1,276,494 related to depreciated
securities. The aggregate cost of investments at April 30, 2004 for
Federal income tax purposes was $282,450,733.
4. Share Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued
shares of beneficial interest without approval of the holders of
Common Shares.
Preferred Shares
Auction Market Preferred Shares are Preferred Shares 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, 2004 were as follows: Series A, 1.00% and Series B,1.00%.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Notes to Financial Statements (concluded)
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, 2004, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $60,911 as commissions.
5. Capital Loss Carryforward:
On October 31, 2003, the Fund had a net capital loss carryforward of
$8,985,089, of which $1,948,898 expires in 2007 and $7,036,191
expires in 2008. 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
Shares in the amount of $.077000 per share on May 27, 2004 to
shareholders of record on May 14, 2004.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Officers and Trustees
Terry K. Glenn, President and Trustee
James H. Bodurtha, Trustee
Joe Grills, Trustee
Herbert I. London, Trustee
Andre F. Perold, Trustee
Roberta Cooper Ramo, Trustee
Robert S. Salomon, Jr., Trustee
Stephen B Swensrud, Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Phillip S. Gillespie, Secretary
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
The Bank of New York
101 Barclay Street - 7 West
New York, NY 10286
NYSE Symbol
MYF
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 stable level of dividend
distributions, 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 particular 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.
Electronic Delivery
The Fund offers electronic delivery of communications to its
shareholders. In order to receive this service, you must
register your account and provide us with e-mail information.
To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification
number (PIN). You will need this PIN should you wish to update your
e-mail address, choose to discontinue this service and/or make any
other changes to the service. This service is not available for
certain retirement accounts at this time.
MUNIYIELD FLORIDA FUND, APRIL 30, 2004
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to
this semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to
this semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies - Not Applicable to this
semi-annual report
Item 8 - Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not
Applicable
Item 10 - Controls and Procedures
10(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.
10(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - Not Applicable to this semi-annual
report
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - 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 Florida Fund
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield Florida Fund
Date: June 18, 2004
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 Florida Fund
Date: June 18, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Florida Fund
Date: June 18, 2004