UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-06660
Name of Fund: BlackRock MuniYield Quality Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock MuniYield Quality 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: (800) 882-0052
Date of fiscal year end: 10/31/2007
Date of reporting period: 05/01/2007 - 07/31/2007
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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Alabama - 0.7% $ 3,000 Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
4.75% due 1/01/2025 $ 3,025
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California - 18.3% 4,150 Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.45% due 10/01/2025 (a)(n) 3,417
1,250 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (f) 1,292
2,200 Arcadia, California, Unified School District, Capital Appreciation, GO
(Election of 2006), Series A, 4.96% due 8/01/2039 (f)(n) 429
3,250 Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 5.20% due 8/01/2037 (g)(n) 699
7,405 Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 4.87% due 8/01/2038 (g)(n) 1,512
2,790 California State, GO, 5.50% due 4/01/2014 (h) 3,063
5 California State, GO, 5.50% due 4/01/2028 5
4,450 California State, GO, Refunding, 5.25% due 9/01/2010 (h) 4,643
30 California State, GO, Refunding, 5.125% due 6/01/2027 31
3,450 California State University, Systemwide Revenue Bonds, Series A, 5% due 11/01/2035 (d) 3,556
10,000 California State, Various Purpose, GO, 5.25% due 11/01/2029 10,482
3,200 California State, Various Purpose, GO, 5.50% due 11/01/2033 3,421
3,875 Chabot-Las Positas, California, Community College District, GO (Election of 2004),
Series B, 4.812% due 8/01/2025 (a)(n) 1,607
1,200 Chino Valley, California, Unified School District, GO (Election of 2002),
Series C, 5.25% due 8/01/2030 (g) 1,274
3,525 Coachella Valley, California, Unified School District, GO (Election of 2005),
Series A, 5% due 8/01/2028 (d) 3,666
2,150 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5% due 8/01/2026 (b) 2,241
1,230 Fresno, California, Unified School District, GO (Election of 2001), Series E,
5% due 8/01/2030 (f) 1,283
1,600 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.50% due 6/01/2013 (b)(h) 1,731
5,000 Hacienda-La Puente, California, Unified School District, GO (Election of 2000),
Series B, 5% due 8/01/2027 (f) 5,178
4,000 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2029 (d) 4,147
2,275 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2036 (d) 2,343
Portfolio Abbreviations
To simplify the listings of BlackRock MuniYield Quality Fund, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of many
of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Mount Diablo, California, Unified School District, GO (Election of 2002),
5% due 7/01/2027 (d) $ 2,070
2,750 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (d) 2,817
2,000 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Paguay Redevelopment Project), 5.125% due 6/15/2033 (a) 2,061
2,100 Sacramento, California, Unified School District, GO (Election of 2002),
5% due 7/01/2030 (g) 2,183
9,000 San Diego County, California, Water Authority, Water Revenue Refunding Bonds,
COP, Series A, 5% due 5/01/2032 (g) 9,258
2,725 San Mateo County, California, Community College District, GO (Election of 2001),
Series A, 5% due 9/01/2026 (d) 2,814
1,950 Tamalpais, California, Union High School District, GO (Election of 2001), 5%
due 8/01/2028 (f) 2,014
3,150 Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5% due 8/01/2030 (g) 3,274
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Colorado - 3.9% 1,650 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (c) 1,749
1,600 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2027 (j) 1,660
1,000 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2033 (j) 1,031
9,000 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue Refunding
Bonds, Series B, 5.485% due 9/01/2029 (g)(n) 2,866
11,125 Northwest Parkway, Colorado, Public Highway Authority (Convertible CABS), Revenue
Bonds, Series C, 5.345% due 6/15/2025 (f)(n) 10,132
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District of Columbia 5,700 District of Columbia, GO, Series A, 4.75% due 6/01/2036 (d) 5,722
- 1.8% 1,930 District of Columbia, Revenue Refunding Bonds (Catholic University of America),
5.625% due 10/01/2009 (a)(h) 2,020
570 District of Columbia, Revenue Refunding Bonds (Catholic University of America),
5.625% due 10/01/2029 (a) 593
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Florida - 3.9% 2,235 Beacon Tradeport Community Development District, Florida, Special Assessment
Revenue Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (j) 2,336
2,065 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25% due 11/15/2036 2,088
4,700 Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), Series G, 5.125% due 11/15/2032 4,729
3,000 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International
Airport), AMT, Series A, 5% due 10/01/2040 (b) 3,042
5,200 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B,
5.125% due 1/01/2032 (d) 5,387
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Georgia - 5.4% 3,500 Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General
Revenue Refunding Bonds, Series C, 5% due 1/01/2033 (f) 3,595
4,270 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2034 (f) 4,411
1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2033 (g) 1,234
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,675 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2039 (g) $ 1,714
5,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (f) 5,268
2,820 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (f) 2,962
4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe
Power Corporation-Scherer), Series A, 6.80% due 1/01/2011 5,196
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Hawaii - 0.5% 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (f) 2,118
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Illinois - 15.7% 5,000 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities),
5.125% due 1/01/2009 (g)(h) 5,189
2,500 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities),
5.75% due 1/01/2012 (g)(h) 2,734
3,400 Chicago, Illinois, O'Hare International Airport Revenue Bonds,
Third Lien, AMT, Series B-2, 5.75% due 1/01/2023 (f) 3,678
4,000 Chicago, Illinois, O'Hare International Airport Revenue Bonds,
Third Lien, AMT, Series B-2, 5.75% due 1/01/2024 (f) 4,327
3,300 Chicago, Illinois, O'Hare International Airport Revenue Bonds,
Third Lien, AMT, Series B-2, 6% due 1/01/2029 (b) 3,633
3 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds,
DRIVERS, AMT, Series 250, 7.505% due 1/01/2021 (g)(i)(m) 3
2,665 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds,
Third Lien, AMT, Series A-2, 5.75% due 1/01/2021 (f) 2,883
5,080 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50%
due 11/15/2012 (a)(h) 5,480
28,525 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5.212% due 6/15/2030 (a)(n) 26,492
5,500 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5% due 6/15/2032 (a) 5,635
7,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), 5.50% due 12/15/2024 (d) 7,291
3,500 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75% due 6/15/2023 (g) 3,773
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Indiana - 2.7% 6,470 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding
Bonds (Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2028 (g) 6,756
5,055 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds
(Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2030 (g) 5,268
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Louisiana - 7.1% 5,100 Louisiana Local Government Environmental Facilities and Community Development
Authority, Revenue Bonds (Capital Projects and Equipment Acquisition), Series A,
6.30% due 7/01/2030 (a) 5,946
2,800 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue Bonds,
Series B, 5% due 6/01/2023 (a) 2,915
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 7,300 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 4.75% due 5/01/2039 (f) $ 7,310
4,675 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31% due 12/01/2027 (a)(n) 1,631
6,150 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5.25% due 7/15/2028 (a) 6,405
5,000 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5% due 7/15/2033 (a) 5,106
800 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project),
AMT, 4.70% due 11/01/2036 (a) 769
1,900 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital Revenue
Bonds (Terrebonne General Medical Center Project), 5.50% due 4/01/2033 (a) 2,027
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Maryland - 1.7% 7,115 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A,
5.25% due 9/01/2039 (b) 7,493
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Massachusetts - 8.3% 3,730 Massachusetts Bay, Massachusetts, Transportation Authority, General Transportation
System Revenue Refunding Bonds, Series A, 7% due 3/01/2011 (g) 4,117
3,550 Massachusetts Bay Transportation Authority, Revenue Refunding Bonds (General
Transportation System), Series A, 7% due 3/01/2014 (g) 4,083
11,400 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A-2, 4.80% due 7/01/2032 (n) 3,282
3,400 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A-2, 5.115% due 7/01/2035 (n) 838
4,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C,
5.60% due 1/01/2045 (f) 4,189
2,200 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.80%
due 12/01/2027 (f) 2,153
2 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS,
AMT, Series 501, 6.999% due 7/01/2009 (a)(i) 2
14,400 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (f) 14,979
2,400 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds,
5.25% due 1/01/2014 (d)(h) 2,577
1,210 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (g) 1,259
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Michigan - 3.8% 2,350 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B,
5% due 7/01/2036 (d) 2,428
2,300 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 2,361
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Oakwood Obligated Group), Series A, 5% due 7/15/2025 1,009
1,700 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.50% due 6/01/2030 (b) 1,798
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C,
5.65% due 9/01/2029 (b) $ 3,456
5,800 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C, 5.45%
due 12/15/2032 (b) 6,065
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Minnesota - 0.9% 4,190 Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue
Bonds (Mortgage-Backed Securities Program), Series B, 5.15% due 12/01/2038 (o)(p) 4,213
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Nebraska - 2.0% 6,315 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds,
Series A, 5% due 4/01/2033 (f) 6,500
2,300 Washington County, Nebraska, Wastewater Facilities Revenue Bonds
(Cargill Inc. Project), AMT, 5.90% due 11/01/2027 2,469
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Nevada - 7.5% 4,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50% due 9/01/2033 (j) 4,245
2,000 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5% due 7/01/2030 (d) 2,056
19,100 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5% due 7/01/2036 (d) 19,570
2,300 Clark County, Nevada, IDR (Southwest Gas Corp. Project), AMT, Series A,
4.75% due 9/01/2036 (d) 2,248
5,710 Washoe County, Nevada, School District, GO, 5.875% due 12/01/2009 (f)(h) 5,976
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New Hampshire - 3.5% 10,000 New Hampshire Health and Education Facilities Authority Revenue Bonds
(Dartmouth-Hitchcock Obligation Group), 5.50% due 8/01/2027 (f) 10,590
5,000 New Hampshire State Business Finance Authority, PCR, Refunding (Public Service
Company), AMT, Series D, 6% due 5/01/2021 (g) 5,164
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New Jersey - 4.4% 910 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 969
1,385 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 1,448
5,500 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A,
5.25% due 7/01/2031 (g) 5,816
3,860 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O,
5.125% due 3/01/2028 4,016
7,500 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O,
5.125% due 3/01/2030 7,798
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New York - 5.9% 3,000 Metropolitan Transportation Authority, New York, Revenue Bonds, Series B,
5% due 11/15/2035 (g) 3,107
8,990 Metropolitan Transportation Authority, New York, Transportation Revenue
Bonds, Series A, 5% due 11/15/2032 (d) 9,278
10,000 New York State Thruway Authority, General Revenue Refunding Bonds,
Series G, 5% due 1/01/2032 (f) 10,377
3,570 Tobacco Settlement Financing Corporation of New York Revenue Bonds,
Series A-1, 5.25% due 6/01/2022 (a) 3,753
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Ohio - 2.2% 2,500 Columbus, Ohio, City School District, GO (School Facilities Construction
and Improvements), 5.25% due 12/01/2014 (f)(h) 2,712
2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds (Consolidated Health
System-Jackson Hospital), 6.125% due 10/01/2009 (h)(j) 2,111
5,250 Ohio State Air Quality, Development Authority Revenue Bonds (Dayton Power
and Light Company Project), 4.80% due 9/01/2036 (d) 5,171
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BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.5% $ 1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6% due 6/01/2019 (d) $ 1,045
1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6.125% due 6/01/2026 (d) 1,048
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Pennsylvania - 5.0% 9,000 Pennsylvania State Public School Building Authority, School Lease Revenue
Bonds (The School District of Philadelphia Project), 5% due 6/01/2013 (f)(h) 9,522
6,000 Pennsylvania State Public School Building Authority, School Lease Revenue
Bonds (The School District of Philadelphia Project), 5.25% due 6/01/2013 (f)(h) 6,426
6,250 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease
Revenue Bonds, Series B, 5.50% due 10/01/2021 (f) 6,632
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South Carolina - 5.6% 3,750 Berkeley County, South Carolina, School District, Installment Lease Revenue
Bonds (Securing Assets for Education Project), 5.125% due 12/01/2030 3,883
3,200 Kershaw County, South Carolina, Public Schools Foundation, Installment Power
Revenue Refunding Bonds, 5% due 12/01/2029 (k) 3,298
8,800 Scago Educational Facilities Corporation for Pickens County School District,
South Carolina, Revenue Bonds, 5% due 12/01/2031 (f) 9,111
8,900 South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A,
5% due 10/01/2033 (a) 9,163
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Tennessee - 4.0% 7,850 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment
Corporation), 5.875% due 10/01/2024 (a) 8,274
5,000 Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds,
AMT, Series D, 6.25% due 3/01/2018 (a) 5,281
2,075 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.10% due 7/01/2013 (a) 2,125
2,340 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.20% due 7/01/2015 (a) 2,381
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Texas - 12.3% 2,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.),
Trust Certificates, Second Tier, Series B, 6% due 1/01/2011 (h) 2,135
1,000 Bell County, Texas, Health Facilities Development Revenue Bonds (Lutheran
General Health Care System), 6.50% due 7/01/2019 (c) 1,181
1,835 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2017 (d) 1,943
2,145 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2018 (d) 2,271
2,385 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2019 (d) 2,526
2,600 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.375% due 10/01/2010 (h)(j) 2,816
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 6,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.875% due 10/01/2010 (h)(j) $ 6,586
4,000 Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior
Lien, Series G, 5.75% due 11/15/2020 (g) 4,247
9,250 Leander, Texas, Independent School District, Capital Appreciation, GO,
Refunding (School Building), 5.46% due 8/15/2028 (d)(n) 3,090
13,350 Leander, Texas, Independent School District, Capital Appreciation, GO,
Refunding (School Building), 5.58% due 8/15/2035 (n) 2,961
6,150 Lewisville, Texas, Independent School District, Capital Appreciation and
School Building, GO, Refunding, 4.748% due 8/15/2024 (d)(n) 2,657
7,150 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (g) 7,379
1,225 North Texas Thruway Authority, Dallas North Thruway System Revenue Bonds,
Series A, 5% due 1/01/2035 (f) 1,259
2,098 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds
(Professional Educators Home Loan Program), AMT, Series A-1, 5.50%
due 12/01/2039 (o)(p) 2,202
7,200 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.75% due 8/15/2038 (a) 7,702
4,600 Travis County, Texas, Health Facilities Development Corporation, Revenue
Refunding Bonds (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (g)(h) 4,889
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Utah - 3.7% 15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals Inc.),
6.30% due 2/15/2015 (g) 16,881
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Virginia - 0.7% 3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old
Dominion Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 3,322
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Washington - 2.7% 2,400 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A,
5.25% due 12/01/2014 (a)(h) 2,604
5,100 Tacoma, Washington, Regional Water Supply System, Water Revenue Bonds,
5% due 12/01/2032 (g) 5,219
4,125 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011 (f) 4,307
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Total Municipal Bonds (Cost - $590,313) - 134.7% 608,682
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Municipal Bonds Held in Trust (r)
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California - 7.1% 5,700 California State, GO, Refunding, 5.25% due 2/01/2033 (j) 5,988
10,000 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.50% due 6/01/2013 (b)(h) 10,817
14,160 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.625% due 6/01/2013 (h)(k) 15,409
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Georgia - 2.3% 10,000 Atlanta, Georgia, Airport Passenger Facility Charge, Subordinate Lien Revenue
Refunding Bonds, Series C, 5% due 1/01/2033 (f) 10,270
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Illinois - 9.4% 10,000 Chicago, Illinois, Board of Education, GO (Chicago School Reform Project),
5.75% due 12/01/2027 (a) 10,263
13,665 Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.75% due 1/01/2021 (g) 14,409
5,000 Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.50% due 1/01/2022 (g) 5,212
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Held in Trust (r) Value
-----------------------------------------------------------------------------------------------------------------------------------
$12,500 Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.375% due 1/01/2032 (g) $ 12,883
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Massachusetts - 0.9% 3,825 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air
Lines Inc. Project), AMT, Series A, 5.50% due 1/01/2019 (a) 3,997
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New Jersey - 3.1% 7,150 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 (e) 7,572
6,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 (e) 6,461
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New York - 3.3% 13,840 New York City, New York, GO, Series B, 5.875% due 8/01/2016 (g) 14,752
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Oregon - 3.5% 15,000 Portland, Oregon, Sewer System Revenue Bonds, Series A, 5.75% due 8/01/2010 (d)(h) 15,825
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Texas - 2.5% 10,470 Denton, Texas, Utility System Revenue Bonds, Series A, 6% due 12/01/2010 (f)(h) 11,177
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Washington - 3.6% 15,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Project Number 1),
Series A, 5.75% due 7/01/2017 (g) 16,171
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Total Municipal Bonds Held in Trust (Cost - $156,872) - 35.7% 161,206
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Shares
Held Short-Term Securities
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2,700 Merrill Lynch Institutional Tax-Exempt Fund, 3.47% (l)(q) 2,700
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Total Short-Term Securities (Cost - $2,700) - 0.6% 2,700
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Total Investments (Cost - $749,885*) - 171.0% 772,588
Other Assets Less Liabilities - 1.4% 6,362
Liabilities for Trust Certificates, Including Interest
Expense Payable - (17.0%) (76,747)
Preferred Stock, at Redemption Value - (55.4%) (250,241)
----------
Net Assets Applicable to Common Stock - 100.0% $ 451,962
==========
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 674,452
=========
Gross unrealized appreciation $ 23,983
Gross unrealized depreciation (2,002)
---------
Net unrealized appreciation $ 21,981
=========
(a) AMBAC Insured.
(b) XL Capital Insured.
(c) Escrowed to maturity.
(d) FGIC Insured.
(e) Assured Guaranty Insured.
(f) FSA Insured.
(g) MBIA Insured.
(h) Prerefunded.
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Radian Insured.
(k) CIFG Insured.
(l) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (4,016) $123
--------------------------------------------------------------------------
(m) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal bond
securities.
(n) Represents a zero coupon or step bond; the interest rate shown reflects
the effective yield at the time of purchase.
(o) FNMA/GNMA Collateralized.
(p) FHLMC Collateralized.
(q) Represents the current yield as of July 31, 2007.
(r) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction.
o Forward interest rate swaps outstanding as of July 31, 2007 were as
follows:
----------------------------------------------------------------------------------------
Notional Unrealized
Amount Appreciation
----------------------------------------------------------------------------------------
Pay a fixed rate of 3.697% and receive a floating rate based on
1-Week Bond Market Association Rate
Broker, JPMorgan Chase
Expires August 2017 $ 20,000 $ 307
----------------------------------------------------------------------------------------
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal quarter that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 3 - Exhibits
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.
BlackRock MuniYield Quality Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: September 20, 2007
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/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: September 20, 2007
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: September 20, 2007