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 811-07080
Name of Fund: BlackRock MuniYield Michigan Insured 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, BlackRock MuniYield Michigan Insured 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: 10/31/07
Date of reporting period: 11/01/06 - 04/30/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES FIXED INCOME LIQUIDITY
REAL ESTATE
Semi-Annual Reports
(UNAUDITED)
APRIL 30, 2007
BlackRock MuniYield Florida Insured Fund
BlackRock MuniYield Michigan Insured Fund, Inc.
BlackRock MuniYield New Jersey Insured Fund, Inc.
BlackRock MuniYield Pennsylvania Insured Fund
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
These reports, including the financial information herein, are transmitted to
shareholders of BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc.
and BlackRock MuniYield Pennsylvania Insured Fund for their information. This
is not a prospectus. Past performance results shown in these reports should
not be considered a representation of future performance. The Funds have
leveraged their Common Shares or Stock and intend to remain leveraged by
issuing Preferred Shares or Stock to provide the Common Shareholders or Common
Stock Shareholders with potentially higher rates of return. Leverage creates
risks for Common Shareholders or Common Stock Shareholders, including the
likelihood of greater volatility of net asset value and market price of the
Common Shares or Stock, and the risk that fluctuations in the short-term
dividend rates of the Preferred Shares or Stock may affect the yield to Common
Shareholders or Common Stock Shareholders. Statements and other information
herein are as dated and are subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1)
without charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web
site at http://www.sec.gov. Information about how the Funds vote proxies
relating to securities held in the Funds' portfolios during the most recent
12-month period ended June 30 is available (1) at www.blackrock.com; and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
BlackRock MuniYield Florida Insured Fund
BlackRock MuniYield Michigan Insured Fund, Inc.
BlackRock MuniYield New Jersey Insured Fund, Inc.
BlackRock MuniYield Pennsylvania Insured Fund
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
It's Fast, Convenient, & Timely!
BlackRock MuniYield Florida Insured Fund
BlackRock MuniYield Michigan Insured Fund, Inc.
BlackRock MuniYield New Jersey Insured Fund, Inc.
BlackRock MuniYield Pennsylvania Insured Fund
Investment Objectives
NYSE Symbol BlackRock MuniYield Florida Insured Fund seeks to provide
MFT 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 and which
enables shares of the Fund to be exempt from Florida intangible
personal property taxes.
NYSE Symbol BlackRock MuniYield Michigan Insured Fund, Inc. seeks to provide
MIY shareholders with as high a level of current income exempt from
federal income tax and Michigan 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 tax and Michigan
income taxes.
NYSE Symbol BlackRock MuniYield New Jersey Insured Fund, Inc. seeks to provide
MJI shareholders with as high a level of current income exempt from
federal income tax and New Jersey personal 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 tax and
New Jersey personal income taxes.
NYSE Symbol BlackRock MuniYield Pennsylvania Insured Fund seeks to provide
MPA shareholders with as high a level of current income exempt from
federal and Pennsylvania 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 and Pennsylvania income taxes.
SEMI-ANNUAL REPORTS APRIL 30, 2007
A Letter to Shareholders
Dear Shareholder
In its first four months, 2007 could already be termed an eventful year for
investors. For most financial markets, 2007 opened just as 2006 ended - on a
positive trajectory. Then, at the end of February and into March, global
equity markets registered their first significant decline since last summer.
The market jitters were triggered by a significant setback in the Chinese
market and were exacerbated by worries of a weakening economy, escalating
geopolitical concerns and rising delinquencies in the subprime mortgage
market. Still, underlying stock market fundamentals appeared quite sound,
supported by a generally favorable global economic backdrop, tame inflation,
slowing but still positive earnings growth, relatively low interest rates and
attractive valuations. These conditions prevailed later, and the Dow Jones
Industrial Average crossed the 13,000 mark for the first time in its history
in late April.
Not unlike the equity market, the bond market also experienced volatility as
observers attempted to interpret mixed economic signals. A bond market rally
(falling yields and rising prices) late last year reversed itself early in
2007 amid some transitory signs of economic strength. Overall, yields have
fluctuated month to month but ended April little changed from the beginning of
the year. However, compared to one year ago, yields on 30-year Treasury bonds
fell 36 basis points (.36%) and 10-year yields fell 44 basis points, while
prices correspondingly rose.
For its part, the Federal Reserve Board (the Fed) has left the target short-
term interest rate on hold at 5.25% since first pausing in its interest rate-
hiking campaign on August 8, 2006. The central bankers continue to express
concern about potential inflationary pressures, but also acknowledge signs of
economic weakness. Given this relatively "balanced" assessment, most observers
believe the Fed will keep interest rates on hold for now.
Against this backdrop, most major market indexes posted positive returns for
the annual and semi-annual reporting periods ended April 30, 2007:
Total Returns as of April 30, 2007 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) + 8.60% +15.24%
Small cap U.S. equities (Russell 2000 Index) + 6.86 + 7.83
International equities (MSCI Europe, Australasia, Far East Index) +15.46 +19.81
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.64 + 7.36
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.59 + 5.78
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.96 +11.72
If the first four months are any guide, 2007 could be a year of enhanced
market volatility. As you navigate the un-certainties, we encourage you to
review your investment goals with your financial professional and to make
portfolio changes, as needed. For more insight, we invite you to view "What's
Ahead in 2007: An Investment Perspective" and "Are You Prepared for
Volatility?" at www.blackrock.com/funds. We thank you for entrusting BlackRock
with your investment assets, and we look forward to continuing to serve you in
the months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund President and Director/Trustee
THIS PAGE NOT PART OF YOUR FUND REPORT
SEMI-ANNUAL REPORTS APRIL 30, 2007
A Discussion With Your Funds' Portfolio Managers
We continued our efforts to enhance yield while protecting net asset value
through investment in high-quality portfolios of municipal bonds.
Describe the recent market environment relative to municipal bonds.
Long-term bond yields traded in a fairly broad and volatile range over the
past six months, only to end the period little changed. Overall, financial
conditions have remained relatively balanced, with moderate economic activity
and well-contained inflationary pressures. Recent commentary from the Federal
Reserve Board (the Fed) has supported this trading range. The Fed is expected
to maintain its "balanced" economic assessment at least into mid-year.
During the six-month reporting period, 30-year U.S. Treasury bond yields rose
nine basis points (.09%) to 4.81%, while 10-year Treasury note yields rose two
basis points to 4.63%. Similarly, movements were fairly muted in the tax-
exempt market. As measured by Municipal Market Data, yields on AAA-rated
municipal bonds maturing in 30 years declined three basis points to 4.10%, and
yields on AAA-rated municipal bonds maturing in 10 years rose 12 basis points
to 3.76%.
Investor demand for municipal product continued to strengthen throughout the
six-month period. The Investment Company Institute reports that long-term
municipal bond funds received over $8.7 billion in net new cash flows during
the first three months of 2007, a 42% increase compared to the first three
months of 2006. Weekly fund flows, as reported by AMG Data, also have risen.
Weekly inflows during the April 2007 quarter averaged over $489 million, up
from a weekly average of $400 million in fourth quarter 2006. The improving
demand among retail investors reflects, in large part, increased acceptance of
lower nominal yields and bond coupon structure. Throughout much of last year,
retail-oriented municipal bond broker/dealers noted significant individual
investor resistance to purchasing tax-exempt issues with yields below 4.50%
and/or issues bearing nominal coupons below 5%. As tax-exempt bond yields have
stabilized in recent months, it appears retail investors have become
increasingly comfortable purchasing tax-exempt bonds with those
characteristics, which has served to support the market's performance.
In terms of supply, issuance of long-term municipal bonds has increased over
the past six months. More than $225 billion in new bonds was issued during
the April reporting period, an increase of over 30% compared to the same six
months one year ago. Over the past three months, municipalities issued more
than $106 billion in new long-term tax-exempt bonds, an increase of more
than 32% compared to the same period a year ago. So far this year, greater
than $135 billion in long-term municipal bonds has been underwritten,
putting 2007 annual issuance some 4% ahead of 2005's record pace. Issuers
have continued to take advantage of historically low interest rates to
refinance outstanding issues. In the first four months of 2007, we have seen
10 underwritings exceeding $1 billion in size. These "mega-deals" have
continued to be relatively easily absorbed by market participants,
especially non-traditional and foreign buyers who find the liquidity
afforded by these deals to be particularly attractive.
Looking ahead, we believe investor demand will be critical in maintaining the
tax-exempt market's strong technical position. The increase in new bond supply
seen this year is unlikely to abate significantly, leading to record or near-
record annual issuance. Relatively stable yield ratios compared to taxable
bonds, coupled with a comparatively steep municipal yield curve, should help
to sustain traditional and non-traditional investor interest in tax-exempt
bonds and support the market's performance into mid-2007.
BlackRock MuniYield Florida Insured Fund
Describe conditions in the State of Florida.
At period-end, Florida maintained its credit ratings of Aa1, AAA and AA+ from
Moody's, Standard & Poor's and Fitch, respectively. The state's consistently
strong financial performance has been the result of a robust service-oriented
economy, prudent budget decisions and a moderate debt profile.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Florida's budget for fiscal year 2007 grew 7% to $74 billion. Revenues are up
only modestly over the prior year and are significantly below original
estimates. As a result, Florida's fiscal year 2007-2008 budget proposals
reflect expense reductions of approximately 3%. The governor and the
legislature will continue to prioritize education spending, with most cuts
expected to focus on nonrecurring items. Key credit issues include property
tax reform, school funding, homeowners' insurance availability and the overall
demand for government services from a rapidly growing population.
Overall, Florida's economy has outperformed on both a national and regional
basis. Job creation has surpassed the national average, leading to low
unemployment and rising personal incomes. The state unemployment rate of 3.3%
in March compared to a national average of 4.4%. These trends, coupled with a
relatively low cost of living, have continued to encourage migration into
Florida and led to a more diversified demographic base. Although the demands
of a growing population will put pressure on the state's finances, we continue
to believe that Florida is well-positioned given its financial flexibility and
record of proactive management.
Florida ranks 19th in debt per capita and 18th in debt as a percent of
personal income, according to Moody's. The state's 2006 per capita personal
income of $35,798 was 20th in the nation, according to the U.S. Department of
Commerce, and approximated the national average of $36,276.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Shares of BlackRock
MuniYield Florida Insured Fund had net annualized yields of 4.60% and 4.94%,
based on a period-end per share net asset value of $14.74 and a per share
market price of $13.72, respectively, and $0.336 per share income dividends.
Over the same period, the total investment return on the Fund's Common Shares
was +1.31%, based on a change in per share net asset value from $14.91 to
$14.74, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +1.49% average
return of the Lipper Florida Municipal Debt Funds category for the six-month
period. (Funds in this Lipper category limit their investment to securities
exempt from taxation in Florida [double tax-exempt] or a city in Florida
[triple tax-exempt]). The Fund's underperformance is attributed largely to its
exposure to bonds with intermediate maturities, which lagged as the yield
curve flattened. We have exposure to these sectors through bonds that have
been prerefunded - thereby transforming several of our longer-dated issues
into intermediate maturities. Although these bonds have underperformed on a
total return basis, they were acquired in a higher interest rate environment
and, as such, contribute meaningfully to the portfolio's yield. While we have
made efforts to reduce some of the Fund's concentration in prerefunded bonds,
the cycle repeats itself as more bonds are prerefunded and the absolute low
level of interest rates makes them difficult to replace.
As we have noted in the past, the Fund is an insured product within a peer
group that includes funds with the ability to invest in uninsured and non-
investment grade credits. Although the credit spread tightening phenomenon
that has benefited non-investment grade issues has slowed, these lower-quality
credits still amply outperformed the high-grade market during the reporting
period, and our lack of exposure detracted from performance versus our more
aggressive peers.
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 distributions, please refer to the Financial
Highlights section of 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
returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not alter our mainline strategy - that is, we continued our efforts to
increase the level of income provided to shareholders while muting the Fund's
net asset value volatility. Having said that, the low absolute level of
interest rates has presented challenges in terms of yield enhancement, as most
of the bonds in the portfolio are booked at higher yields than those currently
available in the market. In general, we made purchases when the market backed
up (that is, interest rates increased and prices fell) and were sellers in
November, after the market had rallied sharply (that is, interest rates fell
and prices increased).
SEMI-ANNUAL REPORTS APRIL 30, 2007
A Discussion With Your Funds' Portfolio Managers (continued)
For the most part, we continued to target premium-coupon bonds in the 20-year
to 30-year maturity range whenever they became available. We continued to find
the most attractive risk/reward trade-off here, although the flatness of the
yield curve has made for few compelling opportunities. New municipal issuance
in the State of Florida increased roughly 42% over the six months compared to
the same period a year ago. However, as has been the case for some time, few
new issues met our desired investment characteristics. Much of the supply came
in the form of refinancings, and the majority of the new issues came with
coupons below 5%. Late in the period, we did purchase some housing bonds and
health care-related issues as supply in these sectors increased. We were able
to make these purchases at attractive prices and capture some incremental
yield for the portfolio.
Importantly, we remained fully invested throughout the period in an effort to
augment yield.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Shares had an average yield of 3.58% for Series A and 3.43% for
Series B. The Fed kept its target interest rate unchanged during the six-month
period at 5.25%. As such, the Fund's borrowing costs remained relatively
stable. Importantly, the municipal yield curve maintained its positive slope,
particularly compared to the Treasury curve, and continued to generate an
income benefit to the holders of Common Shares from the leveraging of
Preferred Shares. As always, should the spread between short-term and long-
term interest rates narrow, the benefits of leveraging will decline and, as a
result, reduce the yield available to holders of Common Shares. (For a more
complete explanation of the benefits and risks of leveraging, see page 12 of
this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We expect the Fed to keep interest rates on hold for now and, as such,
anticipate crosscurrents of strength and weakness in the market. Against this
backdrop, the Fund ended the period with a fairly neutral interest rate
posture, as we await the market to present opportunities in the form of higher
interest rates. As that occurs, we intend to continue our strategy of selling
prerefunded bonds with shorter maturities and investing in the 20-year to
30-year area of the municipal curve, where we continue to see the most
compelling relative value.
BlackRock MuniYield Michigan Insured Fund, Inc.
Describe conditions in the State of Michigan.
The State of Michigan is rated Aa2, AA and AA- by Moody's, Standard & Poor's
and Fitch, respectively. In late January 2007, Fitch downgraded the state's
rating, and all three agencies maintain a negative outlook. Michigan ranks
30th in debt per capita and 32nd in debt as a percent of personal income,
according to Moody's. The state ranked 27th in per capita income in 2006
(preliminary), according to the U.S. Department of Commerce. Michigan's March
2007 unemployment rate was 6.5%, well above the U.S. rate of 4.5%. It is the
only state to have lost jobs for six straight years (through 2006).
Fiscal year 2006 ended on September 30, 2006, with an estimated $200 million
budget surplus, most of which was used to meet fiscal year 2007 spending
obligations. Despite the use of the surplus, Michigan's fiscal year 2007
budget gap is $700 million, following Governor Granholm's recent cuts of
$345 million. The governor's proposed fiscal year 2008 budget, announced in
February, closes a large $2.1 billion gap in a $23 billion operating budget.
This proposed budget relies more heavily on tax increases versus spending
cuts, which had been the focus in prior fiscal years. Key credit concerns
include an ailing automotive sector, the lack of a sustainable alternative
industry and a declining housing market that could further undermine state
revenue collections.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield Michigan Insured Fund, Inc. had net annualized yields of 4.66% and
4.98%, based on a period-end per share net asset value of $15.32 and a per
share market price of $14.33, respectively, and $.354 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +1.63%, based on a change in per share net asset value from
$15.45 to $15.32, and assuming reinvestment of all distributions.
SEMI-ANNUAL REPORTS APRIL 30, 2007
The Fund's total return, based on net asset value, exceeded the +1.40% average
return of the Lipper Michigan Municipal Debt Funds category for the six-month
period. (Funds in this Lipper category limit their investment to securities
exempt from taxation in Michigan or a city in Michigan.) The Fund's favorable
relative performance was driven primarily by continued strong returns among
the lower-rated issues held in the portfolio. Both retail and institutional
demand for higher-yielding credits remained very robust throughout the period,
leading to substantial price appreciation for many of the Fund's A-rated and
BBB-rated holdings. We are pleased with the Fund's results given that, as an
insured fund, at least 80% of portfolio holdings must be insured or rated AAA.
Notably, for the six-month period, the Fund also generated an above-average
distribution rate compared to its Lipper peer group average, largely
reflecting the higher-yield environment in which the Fund originated.
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 Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of distributions, please refer to the Financial
Highlights section of 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 Stock can vary significantly from total investment
returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Portfolio activity was fairly limited during the semi-annual period. In the
most recent quarter (February - April 2007), new issuance of Michigan bonds
increased 65% compared to the same period a year ago, well above national
levels. However, most of the new supply did not meet our desired investment
characteristics. Much of it was issued in maturities shorter than 20 years,
involved names in which the Fund already has significant exposure or came with
unattractive yields.
Generally speaking, the low absolute level of interest rates continued to
present challenges, as the vast majority of the Fund's holdings are booked at
higher yields than those currently available in the market. For the most part,
this environment rendered few compelling investment opportunities, although we
did increase exposure to hospital revenue bonds (rated A or higher) when
valuations were attractive.
We remained fully invested throughout the period in an effort to augment yield
for our shareholders. We also maintained the Fund's high credit quality, with
approximately 82% of net assets rated AAA at period-end.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of 3.54% for Series A, 3.42% for Series B,
3.45% for Series C and 3.48% for Series D. There was no material change in the
Fund's borrowing costs as the Fed kept the federal funds target rate steady at
5.25%. Although flat by historical standards, the tax-exempt yield curve
maintained a positive slope throughout the period (particularly compared to
the U.S. Treasury yield curve), allowing us to borrow at a lower rate than
where we invest. This continued to generate an income benefit to the holders
of Common Stock from the leveraging of Preferred Stock. As always, should the
spread between short-term and long-term interest rates narrow, the benefits of
leveraging 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 12 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
Heading into mid-year, we anticipate little change in tax-exempt bond yields.
The current financial environment remains well balanced, with modest economic
activity and minimal inflationary pressures. Such an environment should allow
the Fed to remain sidelined, awaiting further economic developments to help
guide monetary policy. Accordingly, we expect to maintain our current interest
rate posture. Should economic activity soften - triggered perhaps by a decline
in the equity market or further weakness in housing - we would adopt a more
constructive posture.
Forward new-issue supply in Michigan appears limited, which will continue to
present a challenge with respect to making desired structural changes within
the portfolio.
SEMI-ANNUAL REPORTS APRIL 30, 2007
A Discussion With Your Funds' Portfolio Managers (continued)
As such, future portfolio activity likely will focus on improving the Fund's
already attractive yield and remaining fully invested in an effort to maximize
income for shareholders.
BlackRock MuniYield New Jersey Insured Fund, Inc.
Describe conditions in the State of New Jersey.
The State of New Jersey is rated Aa3, AA and AA- by Moody's, Standard & Poor's
and Fitch, respectively, with stable outlooks from all three agencies. New
Jersey ranks fourth in both debt per capita and debt as a percent of personal
income, according to Moody's. It ranked second in per capita income in 2006
(preliminary), according to the U.S. Department of Commerce. New Jersey's
April 2007 unemployment rate was 4.3%, versus the U.S. rate of 4.5%. Fiscal
year 2006 operations resulted in an estimated $1.5 billion (unaudited) ending
general fund balance. The $31.0 billion fiscal year 2007 budget includes a
1.0% sales tax hike, which is expected to generate roughly $1.2 billion, and
approximately $2.0 billion in spending reductions and freezes. These are the
major components in reducing a projected $4.5 billion budget shortfall. Key
credit issues include ongoing efforts for property-tax reform, as well as
budgetary pressures from retired employees' healthcare and pension costs.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniYield New Jersey Insured Fund, Inc. had net annualized yields of 4.26% and
4.46%, based on a period-end per share net asset value of $15.32 and a per
share market price of $14.66, respectively, and $.324 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +1.64%, based on a change in per share net asset value from
$15.42 to $15.32, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, trailed the +1.74% average
return of the Lipper New Jersey Municipal Debt Funds category for the six-
month period. (Funds in this Lipper category limit their investment to those
securities exempt from taxation in New Jersey [double tax exempt] or a city in
New Jersey [triple tax exempt].) The primary detractor from the Fund's
performance was its limited ability (a maximum of 20% of total net assets) to
invest in uninsured and lower-rated investment grade credits. The Fund also is
precluded from investing in non-investment grade municipal credits, which was
a significant disadvantage relative to our more aggressive Lipper peers, as
these lower-quality credits continued to outpace the high-grade market during
the reporting period. The Fund's slightly short duration early in the period
also detracted from performance, as did the ongoing effect of a low-interest-
rate environment, wherein issuers of higher-coupon bonds pursue refinancing
opportunities and call their outstanding bonds. In an environment where we
cannot replace the higher yields lost to calls, this phenomenon dampened the
distribution rate of the Fund. Conversely, an emphasis on enhancing the
distribution yield of the Fund was beneficial to performance. Out-of-favor
coupons (mainly discounted bonds), housing bonds and Puerto Rico bonds were
among the top contributors to performance.
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 Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of distributions, please refer to the Financial
Highlights section of 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 Stock may vary significantly from total investment
returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Portfolio activity reflected our efforts to enhance the Fund's distribution
rate. We invested largely on the long end of the municipal yield curve, where
we found attractive opportunities to trade the portfolio and to generate
higher levels of income for the Fund. In making purchases, we primarily sought
new-issue housing bonds, Puerto Rico bonds and out-of-favor coupons (mainly
discounted bonds), each of which offers above-market yield and enhances the
portfolio's liquidity and potential for capital appreciation. Alternative
minimum tax (AMT) issues also were a good source of incremental yield during
the period; albeit, we enacted these purchases only when prices were
inexpensive on a historical basis.
SEMI-ANNUAL REPORTS APRIL 30, 2007
New issuance of New Jersey municipal bonds was up 81.6% versus the same six-
month period a year ago. Practically all of the increase was attributed to the
state's refunding of $3.6 billion in bonds issued as part of the tobacco
industry settlement. The tobacco bond refunding provided a gain for the Fund
via the price appreciation associated with the prerefunding of existing
holdings, and allowed us to maintain our exposure to this sector. Excluding
the tobacco settlement bonds, new issuance of New Jersey municipal bonds was
down 6.9%. Nevertheless, we did find moderate opportunities to diversify the
portfolio and move into bonds with more attractive coupon structures. Still,
as has been the case for some time, the low absolute level of yields in the
marketplace, coupled with the lack of a significant directional trade in the
market, limited the attractiveness of any major portfolio restructuring.
With respect to divestments, we continued to trim the portfolio's short-term
holdings, specifically shorter-dated prerefunded bonds and high-coupon, short-
call bonds (primarily those having a call date within three years or less).
These bonds are priced with a premium and, as the call date approaches, their
value depreciates at an accelerating rate and they generally underperform the
overall market. Although this move temporarily hurts distributable income, we
believe it is a worthwhile trade-off to protect the future total return
potential of the Fund.
In the Fund's uninsured basket, we sought to reduce our exposure to AA-rated
and AAA-rated uninsured paper, in favor of higher-yielding, lower-rated
investment grade credits (that is, AA-rated and A-rated issues). Sectors of
interest included housing, education (primarily colleges and universities) and
health care.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of: 3.17% for Series A and 3.12% for Series
B. There was no material change in the Fund's borrowing costs over the course
of the period, as the Fed kept its target rate steady at 5.25%. Although flat
by historical standards, the tax-exempt yield curve maintained a positive
slope throughout the period (particularly compared to the U.S. Treasury yield
curve), allowing us to borrow at a lower rate than where we invest. This
continued to generate an income benefit to the holders of Common Stock from
the leveraging of Preferred Stock. As always, should the spread between short-
term and long-term interest rates narrow, the benefits of leverage will
decline and, accordingly, the yield on the Fund's Common Stock will be
reduced. (For a more complete explanation of the benefits and risks of
leveraging, see page 12 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
At period-end, the Fund maintained a neutral duration relative to its Lipper
peers. We are encouraged by the recent back-up (that is, increase) in interest
rates and the general pick-up in new-issue supply, and will continue to
evaluate prospects for portfolio diversification and income accrual. We also
will seek additional opportunities to sell shorter-dated bonds and reinvest
those proceeds in attractive, longer-dated bonds. Further, if the improvement
in new-issue supply continues, and at current market rates, there may be
additional opportunities to book bonds at higher yields by swapping out of
lower-yielding issues. This strategy enhances the distribution rate of the
Fund, and at the same time, allows the portfolio to record losses (the new
bonds come at prices lower than those of the bonds being sold), minimizing
future taxable gains for shareholders.
All in all, we maintain a positive outlook on the municipal bond market. We
continue to expect relative value trading and yield to be the key drivers of
the Fund's future performance, and accordingly, will look to the long end of
the curve to supply the most suitable prospects.
BlackRock MuniYield Pennsylvania Insured Fund
Describe conditions in the Commonwealth of Pennsylvania.
The Commonwealth of Pennsylvania ended the period with ratings of Aa2, AA and
AA from Moody's, Standard & Poor's and Fitch, respectively, all with stable
trends. Pennsylvania ranks 25th in debt per capita and 27th in debt as a
percent of personal income, according to Moody's. Pennsylvania ranked 18th in
per-capita income in 2006, according to the U.S. Bureau of Economic Analysis.
The Commonwealth's March 2007 unemployment rate of 3.8% was well below the
U.S. rate of 4.4%. Pennsylvania employment numbers continue to post
incremental gains in contrast to a declining labor force.
SEMI-ANNUAL REPORTS APRIL 30, 2007
A Discussion With Your Funds' Portfolio Managers (concluded)
From a fiscal perspective, Pennsylvania's 2006 results show a $149.3 million
general fund surplus and a $514.1 million ending general fund balance. Through
March 2007, Pennsylvania's fiscal year 2007 revenue collections were above
official estimates by $250 million, or 1.3%, led by strong corporate and
personal income tax receipts. Under newly enacted Act 1, expanded property tax
rebates will initially be financed by the state lottery surplus, but legalized
slot gambling revenues ($371 million year-to-date) eventually will be tapped
for this purpose. Casino openings will accelerate over the next couple of
years with the development and construction of newly licensed casino operator
projects. Homeowners are expected to see reductions in their school property
tax bills estimated at a rough average of $200 per household. Pennsylvania law
now requires most school districts to ask voters next year whether they wish
to cut property taxes further by increasing local income taxes. School boards
also are required to obtain voter approval for tax increases in excess of
inflation, which could challenge local budgeting.
How did the Fund perform during the period?
For the six-month period ended April 30, 2007, the Common Shares of BlackRock
MuniYield Pennsylvania Insured Fund had net annualized yields of 4.42% and
4.63%, based on a period-end per share net asset value of $15.89 and a per
share market price of $15.17, respectively, and $.348 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Shares was +2.37%, based on an unchanged per share net asset value of
$15.89, and assuming rein-vestment of all distributions.
The Fund's total return, based on net asset value, outpaced the +1.69% average
return of the Lipper Pennsylvania Municipal Debt Funds category for the six-
month period. (Funds in this Lipper category limit their investment to those
securities exempt from taxation in Pennsylvania [double tax-exempt] or a city
in Pennsylvania [triple tax-exempt].) The Fund also provided an above average
yield during the period, consistent with our efforts to provide an attractive
level of income for our shareholders.
The Fund's outperformance can be attributed to our long duration relative to
our peers, a posture we had assumed for the majority of the period. Interest
rates moved within a very narrow range during the period, but our slightly
long bias proved favorable at times when the market rallied (i.e., interest
rates fell and prices increased). This was particularly true toward the end of
2006.
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 distributions, please refer to the Financial
Highlights section of 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
returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not significantly alter the portfolio's composition or adjust our
underlying strategy during the six-month period. Issuance of new Pennsylvania
municipal bonds increased nearly 60% versus the same period a year ago, and
this presented some investment opportunities toward the end of the period.
Specifically, we invested in some longer-dated Pennsylvania housing bonds that
represented attractive relative value. For the most part, however, most of the
new issues did not meet our desired investment characteristics. The vast
majority had short to intermediate maturities or coupons in the area of only
4.5%, well below the average coupon of bonds booked in the portfolio.
Under these circumstances, we maintained our focus on protecting the Fund's
net asset value and providing shareholders with an above average level of
income. To that end, we continued to seek incremental yield through investment
in longer-dated bonds, while selling shorter-maturity issues in the portfolio.
We also remained fully invested throughout the period.
SEMI-ANNUAL REPORTS APRIL 30, 2007
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Shares had average yields of 3.48% for Series A, 3.53% for Series B
and 3.51% for Series C. The Fed kept its target interest rate unchanged during
the six-month period at 5.25%. As such, the Fund's borrowing costs remained
relatively stable. Importantly, the municipal yield curve maintained its
positive slope, particularly compared to the Treasury curve, and continued to
generate an income benefit to the holders of Common Shares from the leveraging
of Preferred Shares. As always, should the spread between short-term and long-
term interest rates narrow, the benefits of leveraging will decline and, as a
result, reduce the yield available to holders of Common Shares. (For a more
complete explanation of the benefits and risks of leveraging, see page 12 of
this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We ended the period with a fully invested portfolio and a slightly long
duration relative to our peers. Municipal yields and credit spreads are near
their all-time lows and the slope of the yield curve is historically very
flat. However, a favorable supply/demand environment should continue to be
supportive of present valuations in the municipal market.
Against this backdrop, we intend to continue our efforts to enhance yield for
shareholders while also protecting the Fund's underlying value. To that end,
we continue to look for maturities in the 25-year to 30-year area and to favor
a neutral to slightly long portfolio duration, which offers the benefit of
incremental yield. We believe above-average yields can provide for competitive
Fund returns over time.
Robert D. Sneeden
Vice President and Portfolio Manager
BlackRock MuniYield Florida Insured Fund
Fred K. Stuebe
Vice President and Portfolio Manager
BlackRock MuniYield Michigan Insured Fund, Inc.
Timothy T. Browse, CFA
Portfolio Manager
BlackRock MuniYield New Jersey Insured Fund, Inc.
William R. Bock
Vice President and Portfolio Manager
BlackRock MuniYield Pennsylvania Insured Fund
May 29, 2007
SEMI-ANNUAL REPORTS APRIL 30, 2007
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value
of their Common Shares or Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Funds issue
Preferred Shares or Stock, which pay dividends at prevailing short-term
interest rates, and invests the proceeds in long-term municipal bonds. The
interest earned on these investments, net of dividends to Preferred Shares or
Stock, is paid to Common Shareholders or 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 Shares or Stock. However, in
order to benefit Common Shareholders or 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 Shareholders or 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 Shares or Stock
capitalization of $100 million and the issuance of Preferred Shares or 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 Shares or 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.
In this case, the dividends paid to Preferred Shareholders or Preferred Stock
shareholders are significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Shareholders or 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 Shares or
Stock will be reduced or eliminated completely. At the same time, the market
value of the fund's Common Shares or 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 Shares' or 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 Shares or Stock does not fluctuate. In
addition to the decline in net asset value, the market value of the fund's
Common Shares or Stock may also decline.
As of April 30, 2007, BlackRock MuniYield Florida Insured Fund, BlackRock
MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured
Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund had leverage
amounts, due to Auction Market Preferred Shares or Stock, of 36.62%, 37.17%,
35.28% and 35.86% of total net assets, respectively, before the deduction of
Preferred Shares or Stock.
As a part of their investment strategy, the Funds 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 Funds 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 Funds invest in inverse floaters, the market value of each
Fund's portfolio and the net asset value of each Fund's shares may also be
more volatile than if the Funds did not invest in these securities.
Swap Agreements
The Funds may 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. Swap agreements involve the risk that the
party with whom each Fund has entered into a swap will default on its
obligation to pay the Fund and the risk that the Fund will not be able to meet
its obligation to pay the other party to the agreement.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Portfolio Information
Quality Profiles as of April 30, 2007
BlackRock MuniYield Florida Percent of
Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 88.0%
AA/Aa 1.4
A/A 7.2
BBB/Baa 2.0
Other* 1.4
* Includes portfolio holdings in short-term investments.
BlackRock MuniYield Michigan Percent of
Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 85.6%
AA/Aa 2.6
A/A 9.4
BBB/Baa 1.9
Other* 0.5
* Includes portfolio holdings in short-term investments.
BlackRock MuniYield New Jersey Percent of
Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 85.8%
AA/Aa 1.9
A/A 3.4
BBB/Baa 6.8
BB/Ba 0.5
Other* 1.6
* Includes portfolio holdings in short-term investments.
BlackRock MuniYield Pennsylvania Percent of
Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 81.9%
AA/Aa 4.6
A/A 1.5
BBB/Baa 7.6
NR 1.9
Other* 2.5
* Includes portfolio holdings in short-term investments and
variable rate demand notes.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions, the
Funds 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 un-distributed income in addition to net
investment income earned in that month. As a result, the dividends paid by the
Funds for any particular month may be more or less than the amount of net
investment income earned by the Funds during such month. The Funds' 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 these reports.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
District of Columbia--0.8%
$ 1,000 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series A,
5.25% due 10/01/2032 (c) $ 1,050
Florida--139.8%
1,300 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (a) 1,389
1,430 Bay County, Florida, Sales Tax Revenue Bonds, 5%
due 9/01/2027 (a) 1,523
700 Boynton Beach, Florida, Utility System Revenue
Refunding Bonds, 6.25% due 11/01/2020 (b)(c) 829
1,720 Broward County, Florida, Educational Facilities
Authority Revenue Bonds (Nova Southeastern
University), 5% due 4/01/2031 (e) 1,802
1,545 Cape Coral, Florida, Special Obligation Revenue
Bonds, 5% due 10/01/2033 (h) 1,635
1,000 Daytona Beach, Florida, Utility System Revenue
Refunding Bonds, Series B, 5% due 11/15/2027 (c) 1,045
1,000 Deltona, Florida, Transportation Capital Improvement
Revenue Bonds, 5.125% due 10/01/2026 (h) 1,074
1,000 Emerald Coast, Florida, Utilities Authority, System
Revenue Bonds, 5.25% due 1/01/2036 (c) 1,079
1,000 Emerald Coast, Florida, Utilities Authority, System
Revenue Refunding Bonds, 5% due 1/01/2024 (c) 1,070
2,110 First Florida Governmental Financing Commission
Revenue Bonds, 5.70% due 7/01/2007 (h)(i) 2,138
1,000 Flagler County, Florida, Capital Improvement Revenue
Bonds, 5% due 10/01/2035 (h) 1,054
1,095 Florida HFA, Housing Revenue Bonds (Brittany
Rosemont Apartments), AMT, Series C-1, 6.75%
due 8/01/2014 (a) 1,097
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT:
900 Series 2, 4.80% due 7/01/2032 (m)(n)(o) 902
1,565 Series 11, 5.95% due 1/01/2032 (f) 1,611
370 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (f) 383
1,000 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series B, 5% due 6/01/2031 (c) 1,045
6,190 Florida State Board of Education, Lottery Revenue
Bonds, Series A, 6% due 7/01/2010 (c)(i) 6,667
Face
Amount Municipal Bonds Value
Florida (continued)
$ 1,000 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (a) $ 1,053
1,860 Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series B, 5%
due 7/01/2030 1,914
1,400 Fort Myers, Florida, Utility System Revenue Refunding
Bonds, 5% due 10/01/2031 (h) 1,488
3,000 Hernando County, Florida, School Board, COP, 5%
due 7/01/2035 (h) 3,158
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System):
3,700 Series A, 6% due 11/15/2011 (i) 4,073
1,250 Series C, 5.25% due 11/15/2036 1,308
Hillsborough County, Florida, School Board, COP (h):
6,000 5.375% due 7/01/2009 (i) 6,212
1,000 5% due 7/01/2029 1,041
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic-Jacksonville) (h):
1,000 Series A, 5.50% due 11/15/2036 1,072
750 Series B, 5.50% due 11/15/2036 804
1,140 Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.50% due 10/01/2030 (l) 1,227
1,000 Jacksonville, Florida, Economic Development
Commission, Revenue Refunding Bonds (Anheuser
Busch Company Project), AMT, Series B, 4.75%
due 3/01/2047 981
1,455 Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (c) 1,541
2,000 Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center
Project), Series A, 5% due 8/15/2037 2,057
1,225 Jacksonville, Florida, Port Authority, Seaport Revenue
Bonds, AMT, 5.625% due 11/01/2026 (h) 1,288
2,280 Jacksonville, Florida, Sales Tax Revenue Bonds, 5%
due 10/01/2027 (h) 2,387
2,000 Lakeland, Florida, Electric and Water Revenue
Refunding Bonds, Series A, 5% due 10/01/2028 (h) 2,056
1,000 Lee County, Florida, Airport Revenue Bonds, AMT,
Series A, 6% due 10/01/2029 (f) 1,072
Portfolio Abbreviations
To simplify the listings of portfolio holdings in each Fund's
Schedules 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
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 2,285 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (a) $ 2,455
2,000 Lee Memorial Health System, Florida, Hospital
Revenue Bonds, Series A, 5% due 4/01/2032 (a) 2,113
1,000 Leesburg, Florida, Capital Improvement Revenue
Bonds, 5.25% due 10/01/2034 (c) 1,072
1,000 Marco Island, Florida, Utility System Revenue Bonds,
5% due 10/01/2033 (h) 1,046
1,400 Marion County, Florida, Hospital District, Revenue
Refunding Bonds (Monroe Regional Medical Center),
5% due 10/01/2034 1,424
1,000 Martin County, Florida, Utilities System Revenue
Bonds, 5.125% due 10/01/2033 (a) 1,053
2,000 Miami Beach, Florida, Water and Sewer Revenue
Bonds, 5.75% due 9/01/2025 (a) 2,137
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A:
6,300 5% due 10/01/2033 (f) 6,493
5,000 (Miami International Airport), 6%
due 10/01/2024 (c) 5,363
Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A (a):
2,000 5.75% due 4/01/2010 (i) 2,123
1,000 5% due 4/01/2037 1,060
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B (c):
1,000 5.25% due 7/01/2027 1,074
3,875 5% due 7/01/2033 4,060
1,655 Miami-Dade County, Florida, IDA, IDR (BAC
Funding Corporation Project), Series A, 5.375%
due 10/01/2030 (a) 1,756
2,000 Miami-Dade County, Florida, School Board, COP,
Series A, 5.50% due 10/01/2009 (f)(i) 2,084
1,865 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (h) 2,016
Miami-Dade County, Florida, Subordinate Special
Obligation Revenue Bonds, Series A (h)(p):
4,375 5.186% due 10/01/2031 1,313
5,735 5.203% due 10/01/2033 1,542
4,765 Orange County, Florida, Educational Facilities
Authority, Educational Facilities Revenue
Refunding Bonds (Rollins College Project), 5.50%
due 12/01/2032 (a) 5,158
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds: (i)
600 (Adventist Health System), 6.25%
due 11/15/2012 671
1,835 (Orlando Regional Healthcare), 6%
due 12/01/2012 2,037
1,000 Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series A, 5.125% due 1/01/2023 (c) 1,054
Face
Amount Municipal Bonds Value
Florida (continued)
$ 6,500 Orange County, Florida, School Board, COP, Series A,
5.25% due 8/01/2009 (h)(i) $ 6,781
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (a):
4,000 5% due 7/01/2030 4,181
6,815 5% due 7/01/2035 7,123
1,530 Osceola County, Florida, Infrastructure Sales Surplus
Tax Revenue Bonds, 5.25% due 10/01/2025 (a) 1,620
2,000 Osceola County, Florida, School Board, COP, Series A,
5.25% due 6/01/2027 (a) 2,122
1,100 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (c) 1,180
1,500 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (c) 1,849
2,000 Palm Beach County, Florida, School Board, COP,
Refunding, Series D, 5.25% due 8/01/2021 (f) 2,123
Palm Beach County, Florida, School Board, COP,
Series A:
5,000 6% due 8/01/2010 (c)(i) 5,385
1,300 5% due 8/01/2031 (f) 1,370
1,000 Palm Coast, Florida, Utility System Revenue Bonds,
5% due 10/01/2027 (h) 1,045
1,500 Panama City, Florida, Water and Sewer Revenue
Bonds, Series B, 5.25% due 10/01/2022 (h) 1,619
1,000 Pembroke Pines, Florida, Public Improvement Revenue
Bonds, Series A, 5% due 10/01/2034 (a) 1,050
1,340 Polk County, Florida, Public Facilities Revenue Bonds,
5% due 12/01/2033 (h) 1,415
1,000 Polk County, Florida, Utility System Revenue Bonds,
5.25% due 10/01/2022 (c) 1,071
1,055 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25%
due 9/01/2024 (h) 1,142
2,190 Port St. Lucie, Florida, Utility System Revenue
Refunding Bonds, Series A, 5% due 9/01/2029 (h) 2,324
1,000 Saint Johns County, Florida, Ponte Vedra Utility
System Revenue Bonds, 5% due 10/01/2035 (f) 1,053
1,400 Saint Johns County, Florida, Sales Tax Revenue Bonds,
Series A, 5.25% due 10/01/2031 (a) 1,499
1,000 Saint Lucie, Florida, West Services District, Utility
Revenue Bonds, 5.25% due 10/01/2034 (h) 1,080
1,430 South Florida Water Management District, COP, 5%
due 10/01/2036 (a) 1,509
1,000 South Lake County, Florida, Hospital District
Revenue Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,039
2,280 University of Central Florida (UCF) Athletics
Association Inc., COP, Series A, 5.25%
due 10/01/2034 (c) 2,437
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (h):
1,640 5.375% due 11/01/2034 1,784
1,000 5.125% due 11/01/2036 1,063
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
Village Center Community Development District,
Florida, Utility Revenue Bonds (h):
$ 2,585 5.25% due 10/01/2023 $ 2,780
4,030 5.125% due 10/01/2028 4,255
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A (g):
1,000 5% due 6/01/2025 1,060
1,000 5% due 6/01/2035 1,053
New Jersey--1.7%
2,000 New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50% due 6/15/2024 2,105
Puerto Rico--4.4%
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series M, 5% due 7/01/2037 1,049
1,970 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series II, 5.375% due 7/01/2012 (h)(i) 2,148
1,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 1,037
1,145 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (i) 1,204
Total Municipal Bonds
(Cost--$174,683)--146.7% 182,784
Face
Amount Municipal Bonds Held in Trust (k) Value
Florida--11.3%
$ 6,960 Miami-Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding Bonds
(Miami Children's Hospital), Series A, 5.625%
due 8/15/2018 (a) $ 7,535
2,000 Santa Rosa County, Florida, School Board, COP,
Revenue Refunding Bonds, Series 2, 5.25%
due 2/01/2026 (c) 2,158
4,000 South Broward, Florida, Hospital District, Hospital
Revenue Bonds, 5.625% due 5/01/2032 (h) 4,374
Puerto Rico--6.0%
7,100 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series A, 5.375% due 8/01/2011 (h)(i) 7,552
Total Municipal Bonds Held in Trust
(Cost--$20,548)--17.3% 21,619
Shares
Held Short-Term Securities
2,803 CMA Florida Municipal Money Fund, 3.39% (d)(j) 2,803
Total Short-Term Securities
(Cost--$2,803)--2.3% 2,803
Total Investments (Cost--$198,034*)--166.3% 207,206
Liabilities in Excess of Other Assets--(0.4%) (417)
Liability for Trust Certificates,
Including Interest Expense Payable--(8.1%) (10,133)
Preferred Shares, at Redemption Value--(57.8%) (72,049)
----------
Net Assets Applicable to Common Shares--100.0% $ 124,607
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 188,331
===============
Gross unrealized appreciation $ 8,884
Gross unrealized depreciation (39)
---------------
Net unrealized appreciation $ 8,845
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) Represents the current yield as of April 30, 2007.
(e) Assured Guaranty Insured.
(f) FSA Insured.
(g) CIFG Insured.
(h) MBIA Insured.
(i) Prerefunded.
(j) 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
CMA Florida Municipal Money Fund (2,247) $53
(k) 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. See
Note 1(c) to Financial Statements for details of Municipal Bonds Held
in Trust.
(l) ACA Insured.
(m) FHLMC Collateralized.
(n) FNMA Collateralized.
(o) GNMA Collateralized.
(p) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
o Forward interest rate swaps outstanding as of April 30, 2007
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 3.627% and
receive a floating rate based on
1-week USD Bond Market
Association rate
Broker, JPMorgan Chase
Expires June 2017 $11,000 $ 22
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan--138.0%
$ 3,600 Adrian, Michigan, City School District, GO, 5%
due 5/01/2014 (d)(e) $ 3,872
1,000 Allegan, Michigan, Public School District, GO, 5.75%
due 5/01/2010 (d)(e) 1,058
1,000 Ann Arbor, Michigan, Public School District, School
Building and Site, GO, 5% due 5/01/2027 1,052
3,725 Bay City, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2031 (d) 3,952
1,000 Birmingham, Michigan, City School District, School
Building and Site, GO, 5% due 11/01/2033 (d) 1,052
1,000 Central Montcalm, Michigan, Public Schools, GO,
5.90% due 5/01/2009 (b)(e) 1,043
1,500 Delta County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco-Escanaba), AMT,
Series B, 6.45% due 4/15/2012 (e) 1,652
Detroit, Michigan, City School District, GO (School
Building and Site Improvement):
3,000 Refunding, Series A, 5% due 5/01/2021 (d) 3,180
1,000 Series A, 5.50% due 5/01/2012 (d)(e) 1,082
2,300 Series A, 5.375% due 5/01/2013 (c)(e) 2,502
3,100 Series B, 5% due 5/01/2028 (c) 3,222
1,325 Detroit, Michigan, GO, 5.50% due 4/01/2011 (b)(e) 1,412
Detroit, Michigan, Water Supply System
Revenue Bonds:
1,025 DRIVERS, Series 200, 7.211%
due 7/01/2011 (c)(e)(i)(n) 1,201
1,550 Second Lien, Series B, 5% due 7/01/2013 (b)(e) 1,654
2,420 Second Lien, Series B, 5% due 7/01/2034 (b) 2,516
1,250 Senior Lien, Series A, 5.875%
due 1/01/2010 (c)(e) 1,330
6,900 Senior Lien, Series A, 5% due 7/01/2034 (b) 7,174
11,790 Series B, 5.25% due 7/01/2013 (b)(e) 12,742
1,415 Detroit, Michigan, Water Supply System, Revenue
Refunding Bonds, 6.25% due 7/01/2012 (c)(h) 1,504
3,900 Dickinson County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (International Paper Company
Project), Series A, 5.75% due 6/01/2016 4,156
3,100 Dickinson County, Michigan, Healthcare System,
Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (g) 3,243
East Grand Rapids, Michigan, Public School District,
GO (d):
1,610 5.75% due 5/01/2009 (e) 1,674
1,575 5% due 5/01/2031 1,671
Eastern Michigan University, General Revenue
Refunding Bonds (a):
590 6% due 6/01/2010 (e) 635
435 6% due 6/01/2020 467
Face
Amount Municipal Bonds Value
Michigan (continued)
Eastern Michigan University Revenue Bonds,
Series B (c)(e):
$ 1,500 5.60% due 6/01/2010 $ 1,583
1,310 5.625% due 6/01/2010 1,383
Eaton Rapids, Michigan, Public Schools, School
Building and Site, GO (d):
2,425 5% due 5/01/2014 (e) 2,609
1,325 5.25% due 5/01/2020 1,430
1,675 5.25% due 5/01/2021 1,807
1,700 5% due 5/01/2026 1,789
1,175 5% due 5/01/2029 1,234
Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A (g):
615 5.375% due 7/01/2020 627
1,375 6% due 7/01/2020 1,498
2,200 Fowlerville, Michigan, Community Schools, School
District, GO, 5% due 5/01/2030 (c) 2,309
1,000 Frankenmuth, Michigan, School District, GO, 5.75%
due 5/01/2010 (c)(e) 1,058
3,650 Gibraltar, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2028 (c) 3,837
1,100 Grand Blanc, Michigan, Community Schools, GO,
5.625% due 5/01/2020 (c) 1,184
Grand Rapids, Michigan, Building Authority Revenue
Bonds, Series A (a):
1,035 5.50% due 10/01/2012 (e) 1,126
665 5.50% due 10/01/2019 720
900 5.50% due 10/01/2020 975
2,070 Grand Valley, Michigan, State University Revenue
Bonds, 5.50% due 2/01/2018 (c) 2,285
11,250 Greater Detroit Resource Recovery Authority,
Michigan, Revenue Refunding Bonds, Series A, 6.25%
due 12/13/2008 (a) 11,691
5,625 Gull Lake, Michigan, Community School District, School
Building and Site, GO, 5% due 5/01/2014 (d)(e) 6,050
Harper Woods, Michigan, City School District, School
Building and Site, GO, Refunding (c):
4,345 5% due 5/01/2014 (e) 4,674
430 5% due 5/01/2034 450
9,325 Hartland, Michigan, Consolidated School District,
GO, 6% due 5/01/2010 (c)(e) 9,933
3,990 Hudsonville, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (d) 4,192
1,575 Jenison, Michigan, Public Schools, School Building
and Site, GO, 5.50% due 5/01/2019 (c) 1,697
4,000 Kent, Michigan, Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Butterworth Hospital),
Series A, 7.25% due 1/15/2013 (b) 4,384
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
Kent, Michigan, Hospital Finance Authority Revenue
Bonds (Spectrum Health), Series A (e):
$ 3,000 5.50% due 7/15/2011 (b) $ 3,227
1,000 5.50% due 7/15/2011 1,076
1,510 Lansing, Michigan, Building Authority, GO, Series A,
5.375% due 6/01/2013 (b)(e) 1,626
1,015 Lowell, Michigan, Area Schools, GO, Refunding, 5%
due 5/01/2024 (b) 1,076
1,875 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Bonds (Hillsdale College Project),
5% due 3/01/2035 1,931
2,250 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Refunding Bonds (Hope College),
Series A, 5.90% due 4/01/2032 2,383
Michigan Higher Education Facilities Authority,
Revenue Refunding Bonds (College for Creative
Studies):
1,235 5.85% due 12/01/2022 1,316
1,145 5.90% due 12/01/2027 1,217
2,500 Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT, Series XVII-B,
5.40% due 6/01/2018 (a) 2,553
1,065 Michigan Municipal Bond Authority Revenue Bonds
(Local Government Loan Program), Group A, 5.50%
due 11/01/2020 (a) 1,126
Michigan Municipal Bond Authority Revenue
Refunding Bonds (Local Government Loan Program),
Series A:
75 6.50% due 11/01/2012 (b) 75
1,000 6% due 12/01/2013 (c) 1,014
7,000 6.125% due 12/01/2018 (c) 7,104
Michigan State Building Authority, Revenue Refunding
Bonds (Facilities Program):
2,500 Series I, 5.50% due 10/15/2018 (b) 2,676
3,500 Series II, 5% due 10/15/2029 (b) 3,665
2,500 Series II, 5% due 10/15/2033 (a) 2,645
1,250 RIB, Series 517X, 6.80% due 10/15/2010 (d)(i)(n) 1,415
Michigan State, COP (a):
3,000 5.50% due 6/01/2010 (e) 3,152
3,000 5.40% due 6/01/2022 (h)(m) 1,579
3,740 Michigan State, Comprehensive Transportation
Revenue Refunding Bonds, 5% due 5/15/2026 (d) 3,983
Michigan State, HDA, Limited Obligation M/F Housing
Revenue Bonds, AMT (f):
1,000 (Deaconess Towers Apartments), 5.25%
due 2/20/2048 1,025
4,050 (Wiliams Pavilion Apartments), 4.75%
due 4/20/2037 4,024
Michigan State, HDA, Rental Housing Revenue
Bonds, AMT:
835 Series A, 5.30% due 10/01/2037 (b) 849
3,310 Series D, 5% due 4/01/2026 (d) 3,388
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 2,530 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mid-Michigan Obligation Group),
Series A, 5.50% due 4/15/2018 (a) $ 2,693
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
2,200 (Crittenton Hospital), Series A, 5.625%
due 3/01/2027 2,353
2,875 (Oakwood Obligated Group), Series A, 5%
due 7/15/2025 2,970
1,500 (Oakwood Obligated Group), Series A, 5%
due 7/15/2037 1,535
2,000 (Sparrow Obligation Group), 5.625%
due 11/15/2011 (e) 2,171
4,250 (Sparrow Obligated Group), 5% due 11/15/2031 4,391
9,180 Michigan State Hospital Finance Authority Revenue
Bonds (Mid-Michigan Obligor Group), Series A, 5%
due 4/15/2036 9,440
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:
2,715 (Ascension Health Credit), Series A, 5.75%
due 11/15/2009 (b)(e) 2,874
12,000 (Ascension Health Credit), Series A, 6.125%
due 11/15/2009 (b)(e) 12,809
2,500 (Ascension Health Credit), Series A, 6.25%
due 11/15/2009 (b)(e) 2,676
7,200 (Henry Ford Health System), Series A, 5.25%
due 11/15/2032 7,604
3,000 (Henry Ford Health System), Series A, 5%
due 11/15/2038 3,085
2,200 (Mercy Health Services), Series X, 5.75%
due 8/15/2009 (b)(e) 2,318
2,000 (Mercy Health Services), Series X, 6%
due 8/15/2009 (b)(e) 2,120
4,930 (Mercy-Mount Clemens), Series A, 6%
due 5/15/2014 (b) 5,173
3,000 (Saint John Hospital), Series A, 6%
due 5/15/2013 (a)(h) 3,092
6,400 (Trinity Health), Series A, 6% due 12/01/2027 (a) 6,895
1,000 (Trinity Health Credit), Series C, 5.375%
due 12/01/2023 1,062
5,255 (Trinity Health Credit), Series C, 5.375%
due 12/01/2030 5,565
3,100 (Trinity Health Credit Group), Series D, 5%
due 8/15/2034 3,217
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds:
10,250 (Detroit Edison Company Pollution Control
Project), AMT, Series A, 5.55% due 9/01/2029 (b) 10,758
6,000 (Detroit Edison Company Pollution Control
Project), Series AA, 6.95% due 5/01/2011 (c) 6,683
2,175 (Dow Chemical Company Project), AMT, 5.50%
due 12/01/2028 2,264
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 15,000 Monroe County, Michigan, Economic Development
Corp., Limited Obligation Revenue Refunding Bonds
(Detroit Edison Co. Project), Series AA, 6.95%
due 9/01/2022 (c) $ 19,628
1,000 Montrose Township, Michigan, School District, GO,
6.20% due 5/01/2017 (b) 1,180
1,830 Muskegon Heights, Michigan, Water System Revenue
Bonds, Series A, 5.625% due 11/01/2010 (b)(e) 1,945
235 Northview, Michigan, Public School District, GO,
Refunding, 5.80% due 5/01/2021 (b) 239
1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90%
due 5/01/2009 (c)(e) 1,148
500 Oak Park, Michigan, Street Improvement, GO, 5%
due 5/01/2030 (b) 530
5,320 Orchard View, Michigan, Schools, School Building
and Site, GO, 5% due 11/01/2013 (b)(e) 5,707
2,425 Oxford, Michigan, Area Community School District,
GO, 5.50% due 11/01/2011 (d)(e) 2,606
1,370 Pennfield, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2014 (c)(e) 1,474
1,000 Plainwell, Michigan, Community Schools, School
District, School Building and Site, GO, 5.50%
due 11/01/2012 (d)(e) 1,089
3,905 Plymouth-Canton, Michigan, Community School
District, GO, 5% due 5/01/2029 (c) 4,103
700 Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 2), 5.625% due 6/01/2022 (g) 747
1,425 Reed, Michigan, City Public Schools, School Building
and Site, GO, 5% due 5/01/2014 (d)(e) 1,533
1,500 Roseville, Michigan, School District, School Building
and Site, GO, Refunding, 5% due 5/01/2031 (d) 1,591
2,500 Saginaw, Michigan, Hospital Finance Authority,
Revenue Refunding Bonds (Covenant Medical Center),
Series E, 5.625% due 7/01/2013 (b) 2,611
Saginaw Valley State University, Michigan, General
Revenue Refunding Bonds (c):
2,100 5% due 7/01/2024 2,215
1,445 5% due 7/01/2034 1,515
1,150 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Company), RIB,
Series 282, 8.55% due 8/01/2024 (a)(i)(n) 1,265
1,300 Southfield, Michigan, Library Building Authority, GO,
5.50% due 5/01/2010 (b)(e) 1,366
Face
Amount Municipal Bonds Value
Michigan (concluded)
Southfield, Michigan, Public Schools, School Building
and Site, GO, Series A (d):
$ 2,900 5.25% due 5/01/2027 $ 3,110
3,500 5% due 5/01/2029 3,677
1,325 Sparta, Michigan, Area Schools, School Building and
Site, GO, 5% due 5/01/2014 (c)(e) 1,425
1,100 Waverly, Michigan, Community School, GO, 5.50%
due 5/01/2010 (c)(e) 1,154
10,660 Wayne Charter County, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County), AMT,
Series A, 5.375% due 12/01/2015 (b) 10,984
1,750 Wayne Charter County, Michigan, Detroit
Metropolitan Airport, GO, Airport Hotel, Series A, 5%
due 12/01/2030 (b) 1,823
9,160 Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT, 5% due 12/01/2034 (b) 9,569
West Bloomfield, Michigan, School District, GO,
Refunding (c):
1,710 5.50% due 5/01/2017 1,837
1,225 5.50% due 5/01/2018 1,320
2,405 West Branch-Rose City, Michigan, Area School District,
GO, 5.50% due 5/01/2009 (c)(e) 2,489
1,600 Zeeland, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (b) 1,681
Puerto Rico--6.3%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
2,900 Series K, 5% due 7/01/2015 (e) 3,151
8,900 Series N, 5.25% due 7/01/2039 (c) 10,452
3 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Trust Receipts, Class R, Series 16 HH, 7.261%
due 7/01/2013 (d)(i)(n) 3
2,790 Puerto Rico Municipal Finance Agency Revenue Bonds,
Series A, 5% due 8/01/2027 (d) 2,905
1,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (e) 1,052
Total Municipal Bonds
(Cost--$380,357)--144.3% 402,568
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (l) Value
Michigan--21.3%
$ 6,700 Detroit, Michigan, Water Supply System,
Senior Lien Revenue Bonds, Series A, 5.75%
due 7/1/2011 (c)(e) $ 7,275
Michigan State Building Authority, Revenue Refunding
Bonds (Facilities Program), Series I (d):
4,750 5.50% due 10/15/2010 5,065
15,030 5.50% due 10/15/2011 16,027
15,500 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Co. Project),
Series AA, 6.40% due 8/1/2024 (a) 16,277
Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT (b):
7,525 5.25% due 12/1/2025 8,034
6,295 5.25% due 12/1/2026 6,721
Face
Amount Municipal Bonds Held in Trust (l) Value
Puerto Rico--1.0%
$ 2,535 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.75% due 7/01/2010 (d)(e) $ 2,713
Total Municipal Bonds Held in Trust
(Cost--$61,415)--22.3% 62,112
Shares
Held Short-Term Securities
2,367 CMA Michigan Municipal Money Fund, 3.29% (j)(k) 2,367
Total Short-Term Securities
(Cost--$2,367)--0.9% 2,367
Total Investments (Cost--$444,139*)--167.5% 467,047
Other Assets Less Liabilities--2.2% 6,362
Liability for Trust Certificates,
Including Interest Expense Payable--(10.5%) (29,416)
Preferred Stock, at Redemption Value--(59.2%) (165,077)
----------
Net Assets Applicable to Common Stock--100.0% $ 278,916
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 415,718
===============
Gross unrealized appreciation $ 22,288
Gross unrealized depreciation (127)
---------------
Net unrealized appreciation $ 22,161
===============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) Prerefunded.
(f) GNMA Collateralized.
(g) ACA Insured.
(h) Escrowed to maturity.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) 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
CMA Michigan Municipal
Money Fund (5,017) $83
(k) Represents the current yield as of April 30, 2007.
(l) 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. See
Note 1(c) to Financial Statements for details of Municipal Bonds Held
in Trust.
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(n) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal
bond securities.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--138.4%
$ 1,000 Delaware River and Bay Authority of New Jersey and
Delaware Revenue Bonds, 5% due 1/01/2033 (e) $ 1,042
Delaware River Joint Toll Bridge Commission of
New Jersey and Pennsylvania, Bridge Revenue
Refunding Bonds:
1,875 5% due 7/01/2023 1,950
1,000 5% due 7/01/2028 1,038
6,925 Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds, Series B, 5.12%
due 11/01/2023 (d)(k) 3,443
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (d):
2,605 5.80% due 11/01/2022 2,968
3,300 5.75% due 11/01/2028 4,025
2,000 Gloucester County, New Jersey, Improvement
Authority, Solid Waste Resource Recovery, Revenue
Refunding Bonds (Waste Management Inc. Project),
Series A, 6.85% due 12/01/2029 2,134
2,700 Hopatcong, New Jersey, GO, Sewer Refunding Bonds,
4.50% due 8/01/2033 (a) 2,720
1,000 Hudson County, New Jersey, COP, Refunding, 6.25%
due 12/01/2016 (e) 1,185
1,000 Hudson County, New Jersey, Improvement Authority,
Capital Appreciation Revenue Bonds, Series A-1,
4.46% due 12/15/2032 (e)(k) 319
7,500 Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson
County Lease Project), 5.375% due 10/01/2024 (c) 7,723
5,200 Jackson Township, New Jersey, School District, GO,
5% due 4/15/2012 (c)(g) 5,511
3,750 Jersey City, New Jersey, Sewer Authority, Sewer
Revenue Refunding Bonds, 6.25% due 1/01/2014 (a) 4,166
3,000 Middlesex County, New Jersey, COP, Refunding, 5%
due 8/01/2022 (e) 3,119
Monmouth County, New Jersey, Improvement
Authority, Governmental Loan Revenue Bonds (a):
735 5.20% due 12/01/2014 771
2,305 5.25% due 12/01/2015 2,422
Monmouth County, New Jersey, Improvement
Authority, Governmental Loan Revenue Refunding
Bonds (a):
1,695 5% due 12/01/2017 1,783
1,520 5% due 12/01/2018 1,594
1,540 5% due 12/01/2019 1,615
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,060 5.625% due 6/15/2019 1,107
785 5.75% due 6/15/2029 849
225 5.50% due 6/15/2031 239
465 5.75% due 6/15/2034 500
Face
Amount Municipal Bonds Value
New Jersey (continued)
$ 1,000 New Jersey EDA, First Mortgage Revenue Bonds
(Fellowship Village), Series C, 5.50% due 1/01/2028 $ 1,019
1,700 New Jersey EDA, First Mortgage Revenue Refunding
Bonds (Fellowship Village), Series A, 5.50%
due 1/01/2018 1,728
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (e):
3,325 4.95% due 7/01/2021 (k) 1,843
3,900 5% due 7/01/2029 4,104
8,500 5.25% due 7/01/2033 9,118
1,765 5% due 7/01/2034 1,853
6,500 New Jersey EDA, School Facilities Construction,
Revenue Refunding Bonds, Series K, 5.25%
due 12/15/2017 (c) 7,167
5,070 New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey-American Water Company, Inc. Project),
AMT, Series A, 6.875% due 11/01/2034 (c) 5,132
1,900 New Jersey EDA, Water Facilities Revenue Refunding
Bonds (United Water of New Jersey Inc. Project),
VRDN, Series A, 3.95% due 11/01/2026 (a)(h) 1,900
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
1,125 (Somerset Medical Center), 5.50% due 7/01/2033 1,168
4,000 (South Jersey Hospital), 6% due 7/01/2012 (g) 4,403
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
615 (Atlantic City Medical Center), 6.25%
due 7/01/2017 679
1,315 (Atlantic City Medical Center), 5.75%
due 7/01/2025 1,405
2,425 (Holy Name Hospital), 6% due 7/01/2025 2,479
2,250 (Meridian Health System Obligation Group),
5.25% due 7/01/2019 (d) 2,337
New Jersey Sports and Exposition Authority,
Luxury Tax Revenue Refunding Bonds (Convention
Center) (e):
1,540 5.50% due 3/01/2021 1,768
1,000 5.50% due 3/01/2022 1,154
3,200 New Jersey State Educational Facilities Authority,
Higher Education, Capital Improvement Revenue
Bonds, Series A, 5.125% due 9/01/2012 (a)(g) 3,424
New Jersey State Educational Facilities Authority
Revenue Bonds:
1,600 (Montclair State University), Series A, 5%
due 7/01/2021 (a) 1,720
1,185 (Rowan University), Series C, 5%
due 7/01/2014 (e)(g) 1,274
1,315 (Rowan University), Series C, 5.125%
due 7/01/2014 (e)(g) 1,424
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
3,185 (Montclair State University), Series L, 5%
due 7/01/2014 (e)(g) 3,425
1,250 (Ramapo College), Series I, 4.25%
due 7/01/2031 (a) 1,222
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds (concluded):
$ 4,890 (Ramapo College), Series I, 4.25%
due 7/01/2036 (a) $ 4,754
800 (Rowan University), Series B, 4.25%
due 7/01/2034 (c) 779
555 (Rowan University), Series C, 5%
due 7/01/2031 (c) 578
1,725 (William Paterson University), Series E, 5%
due 7/01/2021 (f) 1,818
3,500 New Jersey State, GO, Refunding, Series H, 5.25%
due 7/01/2015 (d) 3,856
3,875 New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30% due 6/01/2017 (a) 3,911
4,425 New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70% due 11/01/2025 (d) 4,526
2,640 New Jersey State Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds, AMT, Series CC,
5.80% due 10/01/2020 (e) 2,732
1,000 New Jersey State Housing and Mortgage Finance
Agency, M/F Revenue Bonds, AMT, Series A, 4.90%
due 11/01/2035 (c) 1,010
500 New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds, AMT,
Series T, 4.70% due 10/01/2037 497
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
2,760 Series C, 5.05% due 12/15/2035 (a)(k) 779
3,240 Series D, 5% due 6/15/2019 (d) 3,462
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds:
4,250 Series A, 5.25% due 12/15/2020 (d) 4,780
3,600 Series B, 5.50% due 12/15/2021 (e) 4,154
3,005 New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series B, 5.15% due 1/01/2035 (a)(k) 2,168
1,835 New Jersey State Turnpike Authority, Turnpike
Revenue Refunding Bonds, Series C-1, 4.50%
due 1/01/2031 (a) 1,837
3,000 Newark, New Jersey, Housing Authority, Port
Authority--Port Newark Marine Terminal, Additional
Rent-Backed Revenue Refunding Bonds (City of
Newark Redevelopment Projects), 4.375%
due 1/01/2037 (e) 2,963
1,710 North Hudson Sewage Authority, New Jersey, Sewer
Revenue Refunding Bonds, 5.125% due 8/01/2020 (e) 1,910
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds:
3,000 AMT, 108th Series, 5.875% due 1/15/2017 (d) 3,051
1,000 93rd Series, 6.125% due 6/01/2094 1,206
Face
Amount Municipal Bonds Value
New Jersey (concluded)
$ 5,000 Port Authority of New York and New Jersey,
Consolidated Revenue Refunding Bonds, AMT,
146th Series, 4.25% due 12/01/2032 (d) $ 4,747
Rahway Valley Sewerage Authority, New Jersey, Sewer
Revenue Bonds (Capital Appreciation), Series A (e)(k):
4,100 4.74% due 9/01/2026 1,770
4,750 4.32% due 9/01/2030 1,705
2,350 4.36% due 9/01/2033 734
2,200 South Jersey Port Corporation of New Jersey, Revenue
Refunding Bonds, 5% due 1/01/2023 2,282
1,715 Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (g) 2,015
Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin
System of Union, Inc.), AMT, Series A (a):
1,590 5.375% due 6/01/2017 1,626
1,670 5.375% due 6/01/2018 1,708
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (a):
570 5.50% due 12/01/2018 619
1,145 5.50% due 12/01/2019 1,243
1,130 5.50% due 12/01/2020 1,226
865 5.50% due 12/01/2021 939
1,400 University of Medicine and Dentistry, New Jersey,
Revenue Refunding Bonds, VRDN, Series B, 3.92%
due 12/01/2032 (a)(h) 1,400
Puerto Rico--7.9%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
1,500 Series J, 5% due 7/01/2029 (e) 1,582
1,380 Series K, 5% due 7/01/2015 (g) 1,499
1,200 Series N, 5.25% due 7/01/2039 (c) 1,409
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (k):
2,750 4.48% due 7/01/2030 (c) 1,000
2,250 4.34% due 7/01/2037 (a) 589
2,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series RR, 5% due 7/01/2028 (b) 2,112
2,110 Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue
Bonds (Ascension Health), RIB, Series 377, 8.06%
due 11/15/2030 (i)(n) 2,441
Total Municipal Bonds
(Cost--$187,681)--146.3% 197,386
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (m) Value
New Jersey--3.9%
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (d):
$ 2,500 6% due 1/01/2018 $ 2,643
2,500 6% due 1/01/2019 2,643
Puerto Rico--8.3%
11,000 Puerto Rico Public Buildings Authority Revenue
Bonds (Government Facilities), Series B, 5.25%
due 7/01/2007 (e)(g) 11,193
Total Municipal Bonds Held in Trust
(Cost--$16,090)--12.2% 16,479
Shares
Held Short-Term Securities Value
86 CMA New Jersey Municipal Money
Fund, 3.29% (j)(l) $ 86
Total Short-Term Securities
(Cost--$86)--0.1% 86
Total Investments (Cost--$203,857*)--158.6% 213,951
Other Assets Less Liabilities--2.1% 2,771
Liability for Trust Certificates,
Including Interest Expense Payable--(6.2%) (8,351)
Preferred Stock, at Redemption Value--(54.5%) (73,512)
----------
Net Assets Applicable to Common Stock--100.0% $ 134,859
==========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 195,661
===============
Gross unrealized appreciation $ 10,169
Gross unrealized depreciation (138)
---------------
Net unrealized appreciation $ 10,031
===============
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) XL Capital Insured.
(g) Prerefunded.
(h) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) 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
CMA New Jersey Municipal Money Fund (1,275) $25
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) Represents the current yield as of April 30, 2007.
(m) 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. See
Note 1(c) to Financial Statements for details of Municipal Bonds Held
in Trust.
(n) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal
bond securities.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited)
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania--123.4%
$ 2,000 Allegheny County, Pennsylvania, Hospital
Development Authority, Health Center Revenue Bonds
(University of Pittsburgh Medical Center Health
System), Series B, 6% due 7/01/2026 (f) $ 2,459
1,000 Allegheny County, Pennsylvania, Residential Finance
Authority, S/F Mortgage Revenue Bonds, AMT,
Series TT, 5% due 5/01/2035 (d) 1,014
5,000 Allegheny County, Pennsylvania, Sanitation Authority,
Sewer Revenue Refunding Bonds, Series A, 5%
due 12/01/2030 (f) 5,293
1,000 Canon-McMillan School District, Pennsylvania,
Capital Appreciation, GO, Series A, 4.54%
due 12/01/2033 (c)(m) 308
1,750 Chester County, Pennsylvania, Health and Education
Facilities Authority, Revenue Refunding Bonds
(Devereux Foundation), 5% due 11/01/2031 1,792
5,500 Delaware County, Pennsylvania, IDA Revenue Bonds
(Pennsylvania Suburban Water Company Project),
AMT, Series A, 5.15% due 9/01/2032 (a) 5,754
4,770 Delaware County, Pennsylvania, IDA, Water Facilities
Revenue Refunding Bonds (Aqua Pennsylvania Inc.
Project), AMT, Series B, 5% due 11/01/2036 (c) 4,988
1,500 Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
5.75% due 7/01/2032 1,817
5,000 Erie County, Pennsylvania, Hospital Authority
Revenue Bonds (Hamot Health Foundation), 5%
due 11/01/2035 (h) 5,267
4,000 Gettysburg, Pennsylvania, Municipal Authority,
College Revenue Refunding Bonds, 5%
due 8/15/2023 (f) 4,090
4,000 Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Lancaster General Hospital Project),
5.50% due 9/15/2013 (j) 4,389
3,000 Lehigh County, Pennsylvania, General Purpose
Authority, Hospital Revenue Refunding Bonds
(Saint Lukes Hospital of Bethlehem), 5.375%
due 8/15/2013 (j) 3,250
5,000 Lehigh County, Pennsylvania, IDA, PCR, Refunding
(Pennsylvania Power and Light Utilities Corporation
Project), Series A, 4.70% due 9/01/2029 (c) 5,096
1,100 New Garden General Authority, Pennsylvania, Revenue
Bonds (Municipal Pooled Financing Program I), VRDN,
3.92% due 11/01/2029 (a)(l) 1,100
2,675 North Allegheny, Pennsylvania, School District, GO,
Series C, 5.25% due 5/01/2027 (e) 2,871
5,000 Northampton Borough, Pennsylvania, Municipal
Authority, Water Revenue Bonds, 5%
due 5/15/2034 (f) 5,238
6,000 Northumberland County, Pennsylvania, IDA, Water
Facilities Revenue Refunding Bonds (Aqua
Pennsylvania Inc. Project), AMT, 5.05%
due 10/01/2039 (c) 6,245
Face
Amount Municipal Bonds Value
Pennsylvania (continued)
$ 3,055 Pennsbury, Pennsylvania, School District, GO,
Refunding, 5.50% due 7/15/2012 (c)(j) $ 3,313
1,200 Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A,
5.10% due 10/01/2027 1,232
2,500 Pennsylvania HFA, Revenue Bonds, DRIVERS, AMT,
Series 1248Z, 6.198% due 10/01/2009 (f)(i)(p) 2,601
5,000 Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 92-A, 4.75% due 4/01/2031 5,010
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds:
5,000 (Slippery Rock University Foundation), Series A,
5% due 7/01/2039 (g) 5,285
3,000 (UPMC Health System), Series A, 6%
due 1/15/2022 3,241
4,305 (York College of Pennsylvania Project), Series EE1,
5% due 11/01/2033 (g) 4,533
8,845 Pennsylvania State Higher Educational Facilities
Authority, State System Revenue Bonds, Series AE,
4.75% due 6/15/2032 (f) 9,122
7,000 Pennsylvania State IDA, EDR, Refunding, 5.50%
due 7/01/2020 (a) 7,621
Pennsylvania State Public School Building Authority,
Revenue Bonds (Lehigh Career and Technical
Institute) (c)(j):
3,085 5.125% due 4/01/2013 3,312
2,000 5.25% due 4/01/2013 2,160
Pennsylvania State Public School Building Authority,
School and Capital Appreciation Revenue Bonds
(Corry Area School District) (e)(m):
1,980 4.85% due 12/15/2022 1,014
1,980 4.87% due 12/15/2023 967
1,980 4.89% due 12/15/2024 923
1,980 4.92% due 12/15/2025 879
Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District of
Philadelphia Project) (e)(j):
6,300 5% due 6/01/2013 6,732
5,000 5.25% due 6/01/2013 5,410
5,000 Pennsylvania State Public School Building Authority,
School Lease Revenue Refunding Bonds (The
School District of Philadelphia Project), Series B, 5%
due 6/01/2033 (e) 5,291
3,340 Pennsylvania State Turnpike Commission,
Turnpike Revenue Bonds, VRDN, Series C, 3.93%
due 12/01/2022 (l) 3,340
1,000 Philadelphia, Pennsylvania, Airport Revenue Bonds,
AMT, Series A, 5% due 6/15/2024 (f) 1,043
Philadelphia, Pennsylvania, Authority for Industrial
Development, Airport Revenue Refunding Bonds
(Philadelphia Airport System Project), AMT, Series A (c):
4,000 5.50% due 7/01/2017 4,251
3,655 5.50% due 7/01/2018 3,883
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (continued)
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds:
$ 9,125 (City of Philadelphia Project), Series A, 5.375%
due 2/15/2027 (f) $ 9,317
3,000 Series B, 5.50% due 10/01/2020 (e) 3,232
4,680 Series B, 5.50% due 10/01/2021 (e) 5,023
10,000 Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, 1998 General Ordinance, 4th Series, 5%
due 8/01/2032 (e) 10,391
700 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, VRDN, Series 6, 3.90%
due 8/01/2031 (e)(l) 700
3,000 Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds (Presbyterian Medical Center),
6.65% due 12/01/2019 (b) 3,612
3,000 Philadelphia, Pennsylvania, Housing Authority
Revenue Bonds (Capital Fund Program), Series A,
5.50% due 12/01/2018 (e) 3,243
4,645 Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%
due 4/15/2027 (c) 4,843
1,750 Philadelphia, Pennsylvania, Redevelopment Authority
Revenue Bonds (Neighborhood Transformation),
Series A, 5.50% due 4/15/2022 (c) 1,873
Philadelphia, Pennsylvania, School District, Series D,
GO (c)(j):
5,000 5.125% due 6/01/2014 5,421
4,000 5.25% due 6/01/2014 4,368
3,700 Philadelphia, Pennsylvania, Water and Wastewater
Revenue Refunding Bonds, Series B, 4.75%
due 11/01/2031 (a) 3,817
8,245 Pittsburgh, Pennsylvania, Water and Sewer Authority,
Water and Sewer System Revenue Bonds, First Lien,
5% due 9/01/2015 (f)(j) 8,926
2,500 Pittsburgh, Pennsylvania, Water and Sewer Authority,
Water and Sewer System Revenue Refunding
Bonds, First Lien, VRDN, Series B-1, 3.90%
due 9/01/2033 (e)(l) 2,500
6,000 Reading, Pennsylvania, School District, GO, 5%
due 1/15/2029 (e) 6,365
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A:
2,010 5.875% due 12/01/2011 (j) 2,204
590 5.875% due 12/01/2031 633
6,145 Shaler Area School District, Pennsylvania, Capital
Appreciation, GO, 4.765% due 9/01/2030 (g)(m) 2,190
Westmoreland County, Pennsylvania, Municipal
Authority, Municipal Service Revenue Bonds (e):
2,570 5.25% due 8/15/2015 (j) 2,832
4,125 Series B, 4.60% due 8/15/2030 (m) 1,453
Face
Amount Municipal Bonds Value
Guam--1.4%
$ 2,500 A.B. Won Guam International Airport Authority,
General Revenue Refunding Bonds, AMT, Series C,
5% due 10/01/2023 (f) $ 2,586
Puerto Rico--13.8%
5,025 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series N, 5.25% due 7/01/2039 (c) 5,901
10,795 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5% due 7/01/2034 11,203
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I:
2,500 5.50% due 7/01/2025 2,721
5,000 5.375% due 7/01/2034 5,360
Total Municipal Bonds
(Cost--$240,969)--138.6% 252,848
Municipal Bonds Held in Trust (i)
Pennsylvania--32.7%
7,000 Luzerne County, Pennsylvania, IDA, Water Facility
Revenue Refunding Bonds (Pennsylvania American
Water Company Project), AMT, Series A, 5.10%
due 9/01/2034 (a) 7,333
15,000 Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District of
Philadelphia Project), 5.25% due 6/1/2013 (e)(j) 16,231
15,000 Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, Sub-Series B, 5.50%
due 12/01/2013 (f)(j) 16,537
7,800 Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A, 5.50% due 12/01/2031 (a) 8,585
10,000 Philadelphia, Pennsylvania, School District, GO,
Series B, 5.625% due 8/01/2012 (c)(j) 10,911
Total Municipal Bonds Held in Trust
(Cost--$56,630)--32.7% 59,597
Shares
Held Short-Term Securities
184 CMA Pennsylvania Municipal Money Fund, 3.25% (k)(o) 184
Total Short-Term Securities
(Cost--$184)--0.0% 184
Total Investments (Cost--$297,783*)--171.3% 312,629
Liabilities in Excess of Other Assets--(0.2%) (336)
Liability for Trust Certificates,
Including Interest Expense Payable--(15.2%) (27,755)
Preferred Shares, at Redemption Value--(55.9%) (102,065)
----------
Net Assets Applicable to Common Shares--100.0% $ 182,473
==========
SEMI-ANNUAL REPORTS APRIL 30, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 270,553
===============
Gross unrealized appreciation $ 14,777
Gross unrealized depreciation (101)
---------------
Net unrealized appreciation $ 14,676
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FNMA/GNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) XL Capital Insured.
(h) CIFG Insured.
(i) 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. See
Note 1(c) to Financial Statements for details of Municipal Bonds Held
in Trust.
(j) Prerefunded.
(k) 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
CMA Pennsylvania Municipal Money Fund 118 $18
(l) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at that time of purchase.
(o) Represents the current yield as of April 30, 2007.
(p) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal
bond securities.
o Forward interest rate swaps outstanding as of April 30, 2007
were as follows:
Unrealized
Notional Appreciation
Amount (Depreciation)
Pay a fixed rate of 3.618% and
receive a floating rate based on
1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires June 2017 $ 6,000 $ 17
Pay a fixed rate of 3.595% and
receive a floating rate based on
1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires June 2017 $ 9,000 41
Pay a fixed rate of 3.627% and
receive a floating rate based on
1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires June 2017 $15,000 30
Pay a fixed rate of 5.136% and
receive a floating rate based on
3-month LIBOR
Broker, JPMorgan Chase
Expires July 2017 $29,000 (13)
--------
Total $ 75
========
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Net Assets
BlackRock BlackRock BlackRock BlackRock
MuniYield MuniYield MuniYield MuniYield
Florida Michigan New Jersey Pennsylvania
Insured Insured Insured Insured
As of April 30, 2007 (Unaudited) Fund Fund, Inc. Fund, Inc. Fund
Assets
Investments in unaffiliated securities, at value* $ 204,402,968 $ 464,679,964 $ 213,865,084 $ 312,445,682
Investments in affiliated securities, at value** 2,802,934 2,366,949 85,517 183,716
Cash 95,775 97,488 99,675 95,277
Unrealized appreciation on forward interest rate swaps 22,187 -- -- 88,632
Interest receivable 2,416,830 8,153,615 3,311,181 4,210,253
Receivable for securities sold -- -- 100,285 --
Prepaid expenses 8,413 10,250 6,984 8,732
-------------- -------------- -------------- --------------
Total assets 209,749,107 475,308,266 217,468,726 317,032,292
-------------- -------------- -------------- --------------
Liabilities
Trust certificates 10,030,000 29,167,500 8,258,755 27,400,000
Unrealized depreciation on forward interest rate swaps -- -- -- 13,456
Payable for securities purchased 2,320,342 511,820 100,286 3,839,194
Interest expense payable 103,477 248,373 92,592 354,501
Dividends payable to Common Stock shareholders/
Common Shareholders 473,302 1,074,172 475,313 665,873
Payable to investment adviser 79,839 179,627 85,376 116,555
Payable to other affiliates 2,226 5,026 2,352 3,199
Accrued expenses 83,440 128,994 83,304 101,513
-------------- -------------- -------------- --------------
Total liabilities 13,092,626 31,315,512 9,097,978 32,494,291
-------------- -------------- -------------- --------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value, of AMPS+++ at
$25,000 per share liquidation preference++*** 72,049,315 165,076,561 73,512,101 102,065,313
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 124,607,166 $ 278,916,193 $ 134,858,647 $ 182,472,688
============== ============== ============== ==============
Analysis of Net Assets Applicable to Common Stock/Shares
Undistributed investment income--net $ 357,521 $ 1,128,488 $ 1,052,647 $ 652,751
Accumulated realized capital losses--net (3,365,704) (15,728,130) (424,304) (4,183,814)
Unrealized appreciation--net 9,193,760 22,907,870 10,093,530 14,921,892
-------------- -------------- -------------- --------------
Total accumulated earnings--net 6,185,577 8,308,228 10,721,873 11,390,829
-------------- -------------- -------------- --------------
Common Stock/Shares, par value $.10 per share++++ 845,181 1,820,630 880,210 1,148,057
Paid-in capital in excess of par 117,576,408 268,787,335 123,256,564 169,933,802
-------------- -------------- -------------- --------------
Net Assets $ 124,607,166 $ 278,916,193 $ 134,858,647 $ 182,472,688
============== ============== ============== ==============
Net asset value per share of Common Stock/Shares $ 14.74 $ 15.32 $ 15.32 $ 15.89
============== ============== ============== ==============
Market Price $ 13.72 $ 14.33 $ 14.66 $ 15.17
============== ============== ============== ==============
* Identified cost of unaffiliated securities $ 195,231,395 $ 441,772,094 $ 203,771,554 $ 297,598,966
============== ============== ============== ==============
** Identified cost of affiliated securities $ 2,802,934 $ 2,366,949 $ 85,517 $ 183,716
============== ============== ============== ==============
*** Preferred Stock/Shares issued and outstanding:
Series A, par value of $.05 per share 2,400 2,000 2,240 1,600
============== ============== ============== ==============
Series B, par value of $.05 per share 480 2,000 -- 1,920
============== ============== ============== ==============
Series B, par value of $.10 per share -- -- 700 --
============== ============== ============== ==============
Series C, par value of $.05 per share -- 1,600 -- 560
============== ============== ============== ==============
Series D, par value of $.10 per share -- 1,000 -- --
============== ============== ============== ==============
++ Preferred Stock/Shares authorized 1,000,000 6,600 2,940 1,000,000
============== ============== ============== ==============
++++ Common Stock/Shares issued and outstanding 8,451,814 18,206,301 8,802,099 11,480,567
============== ============== ============== ==============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Operations
BlackRock BlackRock BlackRock BlackRock
MuniYield MuniYield MuniYield MuniYield
Florida Michigan New Jersey Pennsylvania
Insured Insured Insured Insured
For the Six Months Ended April 30, 2007 (Unaudited) Fund Fund, Inc. Fund, Inc. Fund
Investment Income
Interest and amortization of premium and discount $ 4,733,262 $ 11,099,425 $ 4,979,237 $ 7,322,353
Dividends from affiliates 52,693 83,070 25,403 17,555
-------------- -------------- -------------- --------------
Total income 4,785,955 11,182,495 5,004,640 7,339,908
-------------- -------------- -------------- --------------
Expenses
Investment advisory fees 489,427 1,104,078 517,790 706,572
Interest expense and fees 189,161 564,625 189,946 519,721
Commission fees 90,403 206,360 91,691 128,266
Accounting services 44,797 76,154 45,873 54,854
Professional fees 25,397 30,914 24,051 26,245
Transfer agent fees 21,817 38,039 24,004 28,660
Printing and shareholder reports 11,366 24,553 11,895 15,570
Directors'/Trustees' fees and expenses 10,889 10,786 10,919 10,929
Custodian fees 6,070 12,254 6,424 9,371
Pricing fees 6,783 10,308 5,836 6,412
Listing fees 4,641 4,597 4,603 4,606
Other 20,889 27,166 20,907 25,242
-------------- -------------- -------------- --------------
Total expenses before reimbursement 921,640 2,109,834 953,939 1,536,448
Reimbursement of expenses (8,988) (13,425) (3,676) (2,812)
-------------- -------------- -------------- --------------
Total expenses after reimbursement 912,652 2,096,409 950,263 1,533,636
-------------- -------------- -------------- --------------
Investment income--net 3,873,303 9,086,086 4,054,377 5,806,272
-------------- -------------- -------------- --------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 219,181 1,237,476 459,578 1,160,563
Forward interest rate swaps--net (235,459) (93,463) -- (1,036,965)
-------------- -------------- -------------- --------------
Total realized gain (loss)--net (16,278) 1,144,013 459,578 123,598
-------------- -------------- -------------- --------------
Change in unrealized appreciation/depreciation on:
Investments--net (1,351,875) (3,444,548) (1,280,564) (1,055,403)
Forward interest rate swaps--net 211,948 139,794 -- 999,951
-------------- -------------- -------------- --------------
Total change in unrealized appreciation/depreciation--net (1,139,927) (3,304,754) (1,280,564) (55,452)
-------------- -------------- -------------- --------------
Total realized and unrealized gain (loss)--net (1,156,205) (2,160,741) (820,986) 68,146
-------------- -------------- -------------- --------------
Dividends & Distributions to Preferred Stock Shareholders/Preferred Shareholders
Investment income--net (1,269,641) (2,840,913) (1,150,918) (1,773,991)
Realized gain--net -- -- (13,460) --
-------------- -------------- -------------- --------------
Total dividends and distributions to Preferred Stock
shareholders/Preferred shareholders (1,269,641) (2,840,913) (1,164,378) (1,773,991)
-------------- -------------- -------------- --------------
Net Increase in Net Assets Resulting from Operations $ 1,447,457 $ 4,084,432 $ 2,069,013 $ 4,100,427
============== ============== ============== ==============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Changes in Net Assets
BlackRock MuniYield BlackRock MuniYield
Florida Insured Fund Michigan Insured Fund, Inc.
For the Six For the Six
Months Ended For the Months Ended For the
April 30, 2007 Year Ended April 30, 2007 Year Ended
Increase (Decrease) in Net Assets: (Unaudited) October 31, 2006 (Unaudited) October 31, 2006
Operations
Investment income--net $ 3,873,303 $ 8,162,555 $ 9,086,086 $ 18,947,795
Realized gain (loss)--net (16,278) 48,897 1,144,013 766,219
Change in unrealized appreciation/depreciation--net (1,139,927) 2,043,553 (3,304,754) 3,191,112
Dividends to Preferred Stock shareholders/
Preferred Shareholders (1,269,641) (2,323,697) (2,840,913) (5,190,018)
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations 1,447,457 7,931,308 4,084,432 17,715,108
-------------- -------------- -------------- --------------
Dividends & Distributions to Common Stock Shareholders/Common Shareholders
Investment income--net (2,882,069) (6,338,731) (6,517,856) (15,230,229)
-------------- -------------- -------------- --------------
Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders/Common
Shareholders (2,882,069) (6,338,731) (6,517,856) (15,230,229)
-------------- -------------- -------------- --------------
Stock/Share Transactions
Value of shares issued to Common Stock shareholders/
Common Shareholders in reinvestment of dividends -- 27,237 -- 614,402
-------------- -------------- -------------- --------------
Net increase in net assets derived from stock/share
transactions -- 27,237 -- 614,402
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Shares
Total increase (decrease) in net assets applicable to
Common Stock/Shares (1,434,612) 1,619,814 (2,433,424) 3,099,281
Beginning of period 126,041,778 124,421,964 281,349,617 278,250,336
-------------- -------------- -------------- --------------
End of period* $ 124,607,166 $ 126,041,778 $ 278,916,193 $ 281,349,617
============== ============== ============== ==============
* Undistributed investment income--net $ 357,521 $ 635,928 $ 1,128,488 $ 1,401,171
============== ============== ============== ==============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Statements of Changes in Net Assets (concluded)
BlackRock MuniYield BlackRock MuniYield
New Jersey Insured Fund, Inc. Pennsylvania Insured Fund
For the Six For the Six
Months Ended For the Months Ended For the
April 30, 2007 Year Ended April 30, 2007 Year Ended
Increase (Decrease) in Net Assets: (Unaudited) October 31, 2006 (Unaudited) October 31, 2006
Operations
Investment income--net $ 4,054,377 $ 8,577,480 $ 5,806,272 $ 11,618,794
Realized gain--net 459,578 982,663 123,598 34,726
Change in unrealized appreciation/depreciation--net (1,280,564) 2,138,341 (55,452) 4,128,137
Dividends and distributions to Preferred Stock
shareholders/Preferred Shareholders (1,164,378) (2,163,956) (1,773,991) (3,155,383)
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations 2,069,013 9,534,528 4,100,427 12,626,274
-------------- -------------- -------------- --------------
Dividends & Distributions to Common Stock Shareholders/Common Shareholders
Investment income--net (2,936,913) (6,390,415) (4,029,679) (8,977,803)
Realized gain--net (40,041) -- -- --
-------------- -------------- -------------- --------------
Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders/Common
Shareholders (2,976,954) (6,390,415) (4,029,679) (8,977,803)
-------------- -------------- -------------- --------------
Stock/Share Transactions
Offering and underwriting costs resulting from the
issuance of Preferred Stock/Shares -- -- -- (17,729)
-------------- -------------- -------------- --------------
Net decrease in net assets derived from share transactions -- -- -- (17,729)
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Stock/Shares
Total increase (decrease) in net assets applicable to
Common Stock/Shares (907,941) 3,144,113 70,748 3,630,742
Beginning of period 135,766,588 132,622,475 182,401,940 178,771,198
-------------- -------------- -------------- --------------
End of period* $ 134,858,647 $ 135,766,588 $ 182,472,688 $ 182,401,940
============== ============== ============== ==============
* Undistributed investment income--net $ 1,052,647 $ 1,086,101 $ 652,751 $ 650,149
============== ============== ============== ==============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield Florida Insured Fund
For the Six
The following per share data and Months Ended
ratios have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.91 $ 14.72 $ 15.22 $ 15.04 $ 15.04 $ 14.94
------------ ----------- ----------- ----------- ----------- -----------
Investment income--net .47+++ .97+++ .98+++ .98+++ 1.05+++ 1.04
Realized and unrealized gain (loss)--net (.15) .24 (.38) .20 (.06) .06
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.15) (.27) (.17) (.07) (.07) (.10)
Realized gain--net -- -- -- -- -- --++
------------ ----------- ----------- ----------- ----------- -----------
Total from investment operations .17 .94 .43 1.11 .92 1.00
------------ ----------- ----------- ----------- ----------- -----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.34) (.75) (.90) (.93) (.92) (.90)
Realized gain--net -- -- -- -- -- --++
------------ ----------- ----------- ----------- ----------- -----------
Total dividends and distributions to
Common Shareholders (.34) (.75) (.90) (.93) (.92) (.90)
------------ ----------- ----------- ----------- ----------- -----------
Offering and underwriting costs resulting
from the issuance of Preferred Shares -- -- (.03) -- -- --
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.74 $ 14.91 $ 14.72 $ 15.22 $ 15.04 $ 15.04
============ =========== =========== =========== =========== ===========
Market price per share, end of period $ 13.72 $ 14.21 $ 14.18 $ 14.98 $ 14.18 $ 14.30
============ =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 1.31%+++++ 6.87% 2.72% 7.98% 6.45% 7.22%
============ =========== =========== =========== =========== ===========
Based on market price per share (1.05%)+++++ 5.73% .54% 12.73% 5.56% 7.19%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Shares
Total expenses, net of reimbursement and
excluding interest expense and fees*** 1.16%* 1.17% 1.20% 1.09% 1.08% 1.11%
============ =========== =========== =========== =========== ===========
Total expenses, net of reimbursement*** 1.47%* 1.45% 1.38% 1.27% 1.25% 1.33%
============ =========== =========== =========== =========== ===========
Total expenses*** 1.48%* 1.46% 1.38% 1.28% 1.25% 1.33%
============ =========== =========== =========== =========== ===========
Total investment income--net*** 6.23%* 6.58% 6.50% 6.54% 6.86% 7.02%
============ =========== =========== =========== =========== ===========
Amount of dividends to Preferred Shareholders 2.04%* 1.87% 1.13% .48% .47% .67%
============ =========== =========== =========== =========== ===========
Investment income to Common Shareholders--net 4.19%* 4.71% 5.37% 6.06% 6.39% 6.35%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Shares
Dividends to Preferred Shareholders 3.56%* 3.23% 2.02% 1.02% 1.00% 1.39%
============ =========== =========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Shares,
end of period (in thousands) $ 124,607 $ 126,042 $ 124,422 $ 128,455 $ 126,915 $ 126,947
============ =========== =========== =========== =========== ===========
Preferred Shares outstanding at liquidation
preference, end of period (in thousands) $ 72,000 $ 72,000 $ 72,000 $ 60,000 $ 60,000 $ 60,000
============ =========== =========== =========== =========== ===========
Portfolio turnover 7% 34% 52% 28% 40% 37%
============ =========== =========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 2,731 $ 2,751 $ 2,728 $ 3,141 $ 3,115 $ 3,116
=========== =========== =========== =========== =========== ===========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 444 $ 805 $ 505 $ 255 $ 251 $ 348
============ =========== =========== =========== =========== ===========
Series B++++--Investment income--net $ 425 $ 814 $ 482 -- -- --
============ =========== =========== =========== =========== ===========
* 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.
++++ Series B was issued on November 22, 2004.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield Michigan Insured Fund, Inc.
For the Six
The following per share data and Months Ended
ratios have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 15.45 $ 15.32 $ 15.96 $ 15.94 $ 15.74 $ 15.81
------------ ----------- ----------- ----------- ----------- -----------
Investment income--net** .50 1.04 1.08 1.06 1.10 1.10
Realized and unrealized gain (loss)--net (.12) .22 (.54) .03 .15 (.12)
Dividends to Preferred Stock shareholders
from investment income--net (.16) (.29) (.18) (.07) (.07) (.11)
------------ ----------- ----------- ----------- ----------- -----------
Total from investment operations .22 .97 .36 1.02 1.18 .87
------------ ----------- ----------- ----------- ----------- -----------
Less dividends to Common Stock shareholders
from investment income--net (.35) (.84) (.98) (1.00) (.98) (.94)
------------ ----------- ----------- ----------- ----------- -----------
Offering and underwriting costs resulting
from the issuance of Preferred Stock -- -- (.02) -- -- --
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 15.32 $ 15.45 $ 15.32 $ 15.96 $ 15.94 $ 15.74
============ =========== =========== =========== =========== ===========
Market price per share, end of period $ 14.33 $ 14.67 $ 15.31 $ 15.37 $ 14.69 $ 13.95
============ =========== =========== =========== =========== ===========
Total Investment Return++++
Based on net asset value per share 1.63%+++ 6.64% 2.24% 7.04% 8.26% 6.33%
============ =========== =========== =========== =========== ===========
Based on market price per share .12%+++ 1.32% 6.10% 11.85% 12.57% 4.77%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and
excluding interest expense and fees*** 1.10%* 1.11% 1.10% 1.00% 1.01% 1.04%
============ =========== =========== =========== =========== ===========
Total expenses, net of reimbursement*** 1.51%* 1.61% 1.42% 1.19% 1.20% 1.28%
============ =========== =========== =========== =========== ===========
Total expenses*** 1.52%* 1.62% 1.42% 1.22% 1.21% 1.28%
============ =========== =========== =========== =========== ===========
Total investment income--net*** 6.54%* 6.84% 6.84% 6.69% 6.83% 7.10%
============ =========== =========== =========== =========== ===========
Amount of dividends to Preferred Stock
shareholders 2.04%* 1.87% 1.13% .46% .45% .70%
============ =========== =========== =========== =========== ===========
Investment income to Common Stock
shareholders--net 4.50%* 4.97% 5.71% 6.23% 6.38% 6.40%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.47%* 3.15% 1.98% .95% .94% 1.40%
============ =========== =========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Stock,
end of period (in thousands) $ 278,916 $ 281,350 $ 278,250 $ 289,695 $ 289,364 $ 285,802
============ =========== =========== =========== =========== ===========
Preferred Stock outstanding at liquidation
preference, end of period (in thousands) $ 165,000 $ 165,000 $ 165,000 $ 140,000 $ 140,000 $ 140,000
============ =========== =========== =========== =========== ===========
Portfolio turnover 6% 15% 25% 32% 29% 25%
============ =========== =========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 2,690 $ 2,705 $ 2,686 $ 3,069 $ 3,067 $ 3,041
============ =========== =========== =========== =========== ===========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 439 $ 795 $ 505 $ 250 $ 240 $ 354
============ =========== =========== =========== =========== ===========
Series B--Investment income--net $ 424 $ 780 $ 480 $ 232 $ 230 $ 362
============ =========== =========== =========== =========== ===========
Series C--Investment income--net $ 428 $ 786 $ 482 $ 226 $ 240 $ 333
============ =========== =========== =========== =========== ===========
Series D++--Investment income--net $ 431 $ 782 $ 505 -- -- --
============ =========== =========== =========== =========== ===========
* Annualized.
** Based on average shares outstanding.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Series D was issued on November 22, 2004.
++++ 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.
+++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield New Jersey Insured Fund, Inc.
For the Six
The following per share data and Months Ended
ratios have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 15.42 $ 15.07 $ 15.46 $ 15.25 $ 15.14 $ 15.17
------------ ----------- ----------- ----------- ----------- -----------
Investment income--net .48+++ .97+++ .96+++ 1.03+++ 1.06+++ 1.07
Realized and unrealized gain (loss)--net (.11) .36 (.27) .21 .06 (.06)
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net (.13) (.25) (.16) (.06) (.06) (.09)
Realized gain--net --++ -- -- -- --++ --++
------------ ----------- ----------- ----------- ----------- -----------
Total from investment operations .24 1.08 .53 1.18 1.06 .92
------------ ----------- ----------- ----------- ----------- -----------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.33) (.73) (.92) (.94) (.94) (.94)
Realized gain--net (.01) -- -- -- (.01) (.01)
------------ ----------- ----------- ----------- ----------- -----------
Total dividends and distributions to Common
Stock shareholders (.34) (.73) (.92) (.94) (.95) (.95)
------------ ----------- ----------- ----------- ----------- -----------
Offering and underwriting costs, including
adjustments, resulting from the issuance of
Preferred Stock -- -- --++++++ (.03) -- --
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 15.32 $ 15.42 $ 15.07 $ 15.46 $ 15.25 $ 15.14
============ =========== =========== =========== =========== ===========
Market price per share, end of period $ 14.66 $ 14.96 $ 14.65 $ 15.16 $ 14.39 $ 14.45
============ =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 1.64%+++++ 7.50% 3.49% 7.99% 7.24% 6.27%
============ =========== =========== =========== =========== ===========
Based on market price per share .25%+++++ 7.28% 2.60% 12.23% 6.02% 2.30%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expense, net of reimbursement and
excluding interest expense and fees*** 1.13%* 1.15% 1.16% 1.06% 1.03% 1.07%
============ =========== =========== =========== =========== ===========
Total expenses, net of reimbursement*** 1.42%* 1.59% 1.52% 1.33% 1.29% 1.39%
============ =========== =========== =========== =========== ===========
Total expenses*** 1.42%* 1.59% 1.52% 1.35% 1.30% 1.39%
============ =========== =========== =========== =========== ===========
Total investment income--net*** 6.04%* 6.46% 6.21% 6.79% 6.89% 7.04%
============ =========== =========== =========== =========== ===========
Amount of dividends to Preferred Stock
shareholders 1.71%* 1.63% 1.03% .42% .38% .57%
============ =========== =========== =========== =========== ===========
Investment income to Common Stock
shareholders--net 4.33%* 4.83% 5.18% 6.37% 6.51% 6.47%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Stock
Dividends to Preferred Stock shareholders 3.16%* 2.94% 1.90% .95% .91% 1.32%
============ =========== =========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Stock,
end of period (in thousands) $ 134,859 $ 135,767 $ 132,622 $ 135,370 $ 133,240 $ 132,146
============ =========== =========== =========== =========== ===========
Preferred Stock outstanding at liquidation
preference, end of period (in thousands) $ 73,500 $ 73,500 $ 73,500 $ 73,500 $ 56,000 $ 56,000
============ =========== =========== =========== =========== ===========
Portfolio turnover 14% 11% 29% 16% 21% 25%
============ =========== =========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 2,835 $ 2,847 $ 2,804 $ 2,842 $ 3,379 $ 3,360
============ =========== =========== =========== =========== ===========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 393 $ 736 $ 492 $ 232 $ 228 $ 330
============ =========== =========== =========== =========== ===========
Series B++++--Investment income--net $ 387 $ 735 $ 420 $ 57 -- --
============ =========== =========== =========== =========== ===========
* 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.
++++ Series B was issued on August 25, 2004.
++++++ Amount is less than $.01 per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Financial Highlights BlackRock MuniYield Pennsylvania Insured Fund
For the Six
The following per share data and Months Ended
ratios have been derived from information April 30, 2007 For the Year Ended October 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 15.89 $ 15.57 $ 16.04 $ 15.56 $ 15.34 $ 15.19
------------ ----------- ----------- ----------- ----------- -----------
Investment income--net .49+++ 1.01+++ 1.05+++ 1.08+++ 1.11+++ 1.11
Realized and unrealized gain (loss)--net .01 .36 (.35) .48 .16 .13
Dividends to Preferred Shareholders from
investment income--net (.15) (.27) (.19) (.08) (.07) (.11)
------------ ----------- ----------- ----------- ----------- -----------
Total from investment operations .35 1.10 .51 1.48 1.20 1.13
------------ ----------- ----------- ----------- ----------- -----------
Less dividends to Common Shareholders from
investment income--net (.35) (.78) (.96) (1.00) (.98) (.98)
------------ ----------- ----------- ----------- ----------- -----------
Offering and underwriting costs, including
adjustments, resulting from the issuance of
Preferred Shares -- --++ (.02) -- -- --
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 15.89 $ 15.89 $ 15.57 $ 16.04 $ 15.56 $ 15.34
============ =========== =========== =========== =========== ===========
Market price per share, end of period $ 15.17 $ 14.60 $ 14.91 $ 15.61 $ 14.81 $ 14.37
============ =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share 2.37%+++++ 7.52% 3.16% 10.15% 8.33% 7.84%
============ =========== =========== =========== =========== ===========
Based on market price per share 6.37%+++++ 3.16% 1.51% 12.63% 10.07% 2.57%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Common Shares
Total expenses, net of reimbursement and
excluding interest expense and fees*** 1.12%* 1.13% 1.13% 1.05% 1.07% 1.12%
============ =========== =========== =========== =========== ===========
Total expenses, net of reimbursement*** 1.69%* 1.69% 1.69% 1.32% 1.29% 1.35%
============ =========== =========== =========== =========== ===========
Total expenses*** 1.69%* 1.70% 1.70% 1.33% 1.30% 1.35%
============ =========== =========== =========== =========== ===========
Total investment income--net*** 6.40%* 6.49% 6.56% 6.89% 7.08% 7.30%
============ =========== =========== =========== =========== ===========
Amount of dividends to Preferred Shareholders 1.96%* 1.76% 1.17% .51% .47% .70%
============ =========== =========== =========== =========== ===========
Investment income to Common Shareholders--net 4.44%* 4.73% 5.39% 6.38% 6.61% 6.60%
============ =========== =========== =========== =========== ===========
Ratios Based on Average Net Assets Applicable to Preferred Shares
Dividends to Preferred Shareholders 3.51%* 3.09% 2.12% 1.04% .95% 1.37%
============ =========== =========== =========== =========== ===========
Supplemental Data
Net assets applicable to Common Shares,
end of period (in thousands) $ 182,473 $ 182,402 $ 178,771 $ 183,877 $ 178,337 $ 175,720
============ =========== =========== =========== =========== ===========
Preferred Shares outstanding at liquidation
preference, end of period (in thousands) $ 102,000 $ 102,000 $ 102,000 $ 88,000 $ 88,000 $ 88,000
============ =========== =========== =========== =========== ===========
Portfolio turnover 10% 25% 42% 41% 41% 37%
============ =========== =========== =========== =========== ===========
Leverage
Asset coverage per $1,000 $ 2,789 $ 2,788 $ 2,753 $ 3,090 $ 3,027 $ 2,997
============ =========== =========== =========== =========== ===========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 431 $ 773 $ 531 $ 254 $ 242 $ 338
============ =========== =========== =========== =========== ===========
Series B--Investment income--net $ 438 $ 773 $ 530 $ 261 $ 235 $ 346
============ =========== =========== =========== =========== ===========
Series C++++--Investment income--net $ 435 $ 775 $ 501 -- -- --
============ =========== =========== =========== =========== ===========
* 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.
++++ Series C was issued on November 22, 2004.
+++ Based on average shares outstanding.
+++++ Aggregate total return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured
Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock
MuniYield Pennsylvania Insured Fund (the "Funds" or individually, as the
"Fund") are registered under the Investment Company Act of 1940, as amended,
as non-diversified, closed-end management investment companies. The Funds'
financial statements are prepared in conformity with U.S. generally accepted
accounting principles, 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 present a fair statement of the results for the
interim period. All such adjustments are of a normal, recurring nature. The
Funds determine and make available for publication the net asset value of
their Common Stock/Shares on a daily basis. The Funds' Common Stock/Shares are
listed on the New York Stock Exchange under the symbol MFT for BlackRock
MuniYield Florida Insured Fund, MIY for BlackRock MuniYield Michigan Insured
Fund, Inc., MJI for BlackRock MuniYield New Jersey Insured Fund, Inc. and MPA
for BlackRock MuniYield Pennsylvania Insured Fund. The following is a summary
of significant accounting policies followed by the Funds.
(a) Valuation of investments--Municipal bonds are traded primarily in the over-
the-counter ("OTC") markets and are valued at the last available bid price in
the OTC markets or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general
direction of each Fund's Board of Directors/Trustees. Such valuations and
procedures are reviewed periodically by each Fund's Board of Directors/
Trustees. Financial futures contracts and options thereon, which are traded on
ex-changes, 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. Options traded in the OTC market are
valued at 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 Funds' pricing service. Short-term investments with a remaining
maturity of 60 days or less are valued at amortized cost, which approximates
market value, under which method the investment is valued at cost and any
premium or discount is amortized on a straight line basis to maturity.
Effective April 2, 2007, short-term securities purchased with a maturity of
greater than 60 days may be valued at amortized cost. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other 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 each Fund's Board of Directors/Trustees.
(b) Derivative financial instruments--Each 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 due to an unfavorable change in the price of the underlying security,
or if the counterparty does not perform under the contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Financial
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--Each 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).
SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (continued)
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--Each 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.
* Swaps--Each Fund may enter into swap agreements, which are OTC contracts in
which the Fund and a counterparty agree to make periodic net payments on a
specified notional amount. The net payments can be made for a set period of
time or may be triggered by a predetermined credit event. The net periodic
payments may be based on a fixed or variable interest rate; the change in
market value of a specified security, basket of securities, or index; or the
return generated by a security. These periodic payments received or made by
the Fund are recorded in the accompanying Statement of Operations as realized
gains or losses, respectively. Gains or losses are also realized upon
termination of the swap agreements. Swaps are marked-to-market daily and
changes in value are recorded as unrealized appreciation (depreciation). Risks
include changes in the returns of the underlying instruments, failure of the
counterparties to perform under the contracts' terms and the possible lack of
liquidity with respect to the swap agreements.
(c) Municipal bonds held in trust--Certain Funds invest in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests: short-
term floating rate certificates, which are sold to third party investors, and
residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. Each Fund's transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the
municipal securities deposited into a TOB are presented in the Funds'
schedules of investments and the proceeds from the transactions are reported
as a liabilityfor trust certificates of the Funds. Similarly, proceeds from
residual certificates issued to affiliates, if any, from the transaction are
included in the liability for trust certificates. Interest income from the
underlying security is recorded by the Funds on an accrual basis. Interest
expense incurred on the secured borrowing and other expenses related to
remarketing, administration and trustee services to a TOB are reported as
expenses of a Fund. The floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender
certificates to the TOB for redemption at par at each reset date. The residual
interests held by the Funds include the right of the Funds (1) to cause the
holders of a proportional share of the floating rate certificates to tender
their certificates at par, and (2) to transfer a corresponding share of the
municipal securities from the TOB to the Funds. At April 30, 2007, the
aggregate value of the underlying municipal securities transferred to TOBs and
the liability for trust certificates were:
Underlying
Municipal
Liability for Range of Bonds
Trust Interest Transferred
Certificates Rates to TOBs
BlackRock MuniYield
Florida Insured 3.91% -
Fund $10,030,000 3.98% $21,618,974
BlackRock MuniYield
Michigan Insured 3.95% -
Fund, Inc. $29,167,500 4.02% $62,111,850
BlackRock MuniYield
New Jersey Insured 3.92% -
Fund, Inc. $ 8,258,755 3.94% $16,478,735
BlackRock MuniYield
Pennsylvania 3.97% -
Insured Fund $27,400,000 4.02% $59,597,248
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment,
but tend to outperform the market for fixed rate municipal bonds when interest
rates decline or remain relatively stable. Should short-term interest rates
rise, the Funds' investment in TOB Residuals likely will adversely affect the
Funds' investment income - net and distributions to shareholders. Fluctuations
in the market value of municipal securities deposited into the TOB may
adversely affect the Funds' net asset values per share.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (continued)
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Income taxes--It is each 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.
(e) 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 Funds amortize all
premiums and discounts on debt securities.
(f) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Offering expenses--Direct expenses relating to the public offering of
certain Fund's Preferred Stock/Shares were charged to Common Shares/Stock
capital. Any adjustments to estimates of offering costs were recorded to
capital.
(h) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109." FIN 48 prescribes the minimum recognition threshold a tax position must
meet in connection with accounting for uncertainties in income tax positions
taken or expected to be taken by an entity, including mutual funds, before
being measured and recognized in the financial statements. Adoption of FIN 48
is required for fiscal years beginning after December 15, 2006. The impact on
the Funds' financial statements, if any, is currently being assessed.
In September 2006, "Statement of Financial Accounting Standards No. 157, Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Funds' financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Funds' financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Investment Advisory Agreement between each Fund and BlackRock Advisors,
LLC (the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc.
became effective on September 29, 2006. Prior to September 29, 2006, Fund
Asset Management, L.P. ("FAM") was each Fund's manager. The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly owned subsidiary
of Merrill Lynch & Co., Inc. ("Merrill Lynch"), which is the limited partner.
Merrill Lynch and The PNC Financial Services Group, Inc. are the principal
owners of BlackRock, Inc.
The Manager is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, each Fund
pays a monthly fee at an annual rate of .50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock/Shares. The
Manager has agreed to reimburse its management fee by the amount of management
fees each Fund pays to the Manager indirectly through its investment(s)
described below:
SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (continued)
Reimbursement
for the Six
Months Ended
Investment April 30, 2007
BlackRock MuniYield CMA Florida
Florida Insured Fund Municipal
Money Fund $ 8,988
BlackRock MuniYield CMA Michigan
Michigan Insured Municipal Money
Fund, Inc. Fund $13,425
BlackRock MuniYield CMA New Jersey
New Jersey Insured Municipal Money
Fund, Inc. Fund $ 3,676
BlackRock MuniYield CMA Pennsylvania
Pennsylvania Insured Municipal Money
Fund Fund $ 2,812
In addition, the Manager has entered into separate sub-advisory agreements
with BlackRock Investment Management, LLC ("BIM"), an affiliate of the
Manager, with respect to each Fund, under which the Manager pays BIM for
services it provides a monthly fee that is a percentage of the management fee
paid by the Fund to the Manager.
Each of the Funds reimbursed the Manager for certain accounting services. The
reimbursements were as follows:
Reimbursement
BlackRock MuniYield Florida Insured Fund $1,888
BlackRock MuniYield Michigan Insured Fund, Inc. $4,225
BlackRock MuniYield New Jersey Insured Fund, Inc. $1,981
BlackRock MuniYield Pennsylvania Insured Fund $2,696
Certain officers and/or directors/trustees of the Funds are officers and/or
directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended April 30, 2007 were as follows:
Total Total
Purchases Sales
BlackRock MuniYield Florida
Insured Fund $ 16,767,831 $ 14,199,267
BlackRock MuniYield Michigan
Insured Fund, Inc. $ 30,574,304 $ 37,384,025
BlackRock MuniYield New
Jersey Insured Fund, Inc. $ 30,421,383 $ 30,852,476
BlackRock MuniYield
Pennsylvania Insured Fund $ 31,631,954 $ 31,374,168
4. Stock/Share Transactions:
BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield Pennsylvania
Insured Fund are authorized to issue an unlimited number of Common Shares of
beneficial interest, par value $.10 per share together with 1,000,000
Preferred Shares of beneficial interest, par value of $.05 per share. Each
Fund's Board of Trustees is authorized, however, to reclassify any unissued
shares of beneficial interest without approval of the holders of Common
Shares.
BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New
Jersey Insured Fund, Inc. are authorized to issue 200,000,000 shares of stock,
including Preferred Stock, par value $.10 per share or $.05 per share, all of
which were initially classified as Common Stock. Each Fund's Board of
Directors is authorized, however, to classify any unissued shares of stock
without approval of holders of Common Stock.
Common Stock/Shares
BlackRock MuniYield Florida Insured Fund
Shares issued and outstanding during the six months ended April 30, 2007
remained constant. Shares issued and outstanding during the year ended
October 31, 2006 increased by 1,851 as a result of dividend reinvestment.
BlackRock MuniYield Michigan Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2007
remained constant. Shares issued and outstanding during the year ended
October 31, 2006 increased by 40,195 as a result of dividend reinvestment.
BlackRock MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2007
and the year ended October 31, 2006 remained constant.
BlackRock MuniYield Pennsylvania Insured Fund
Shares issued and outstanding during the six months ended April 30, 2007 and
the year ended October 31, 2006 remained constant.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Preferred Stock/Shares of
the respective Funds, with 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.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Notes to Financial Statements (concluded)
Preferred Shares of BlackRock MuniYield Florida Insured Fund and BlackRock
MuniYield Pennsylvania Insured Fund have a par value of $.05 per share.
BlackRock MuniYield Michigan Insured Fund, Inc. has a par value of $.05 per
share on Series A Shares, Series B Shares and Series C Shares, and $.10 per
share on Series D Shares. BlackRock MuniYield New Jersey Insured Fund, Inc.
has a par value of $.05 per share for Series A Shares and $.10 per share for
Series B Shares. The yields in effect at October 31, 2006 were as follows:
BlackRock BlackRock
MuniYield MuniYield
Florida Michigan
Insured Insured
Fund Fund, Inc.
Series A 3.85% 3.50%
Series B 3.80% 3.45%
Series C -- 3.60%
Series D -- 3.60%
BlackRock BlackRock
MuniYield MuniYield
New Jersey Pennsylvania
Insured Insured
Fund, Inc. Fund
Series A 3.27% 3.85%
Series B 3.80% 3.78%
Series C -- 3.88%
Each 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, 2007, Merrill
Lynch, Pierce, Fenner & Smith Incorporated earned commissions as follows:
Commissions
BlackRock MuniYield Florida Insured Fund $ 53,850
BlackRock MuniYield Michigan Insured Fund, Inc. $ 91,406
BlackRock MuniYield New Jersey Insured Fund, Inc. $ 52,732
BlackRock MuniYield Pennsylvania Insured Fund $ 72,085
5. Capital Loss Carryforward:
BlackRock MuniYield Florida Insured Fund
On October 31, 2006, the Fund had a net capital loss carryforward of
$2,755,001, of which $673,276 expires in 2008 and $2,081,725 expires in
2012. This amount will be available to offset like amounts of any future
taxable gains.
BlackRock MuniYield Michigan Insured Fund, Inc.
On October 31, 2006, the Fund had a net capital loss carryforward of
$12,942,798, of which $374,297 expires in 2007, $7,490,629 expires in 2008,
$1,124,652 expires in 2010 and $3,953,220 expires in 2012. This amount will
be available to offset like amounts of any future taxable gains.
BlackRock MuniYield Pennsylvania Insured Fund
On October 31, 2006, the Fund had a net capital loss carryforward of
$3,249,768, all of which expires in 2008. This amount will be available to
offset like amounts of any future taxable gains.
6. Subsequent Event:
Each Fund paid a tax-exempt income dividend to holders of Common Stock/Shares
on June 1, 2007 to stock/shareholders of record on May 15, 2007. The amount of
the tax-exempt income dividend was as follows:
Per Share Amount
BlackRock MuniYield Florida Insured Fund $.056000
BlackRock MuniYield Michigan Insured Fund, Inc. $.059000
BlackRock MuniYield New Jersey Insured Fund, Inc. $.054000
BlackRock MuniYield Pennsylvania Insured Fund $.058000
SEMI-ANNUAL REPORTS APRIL 30, 2007
Officers and Directors/Trustees
Robert C. Doll, Jr., Fund President and Director/Trustee
Donald W. Burton, Director/Trustee
John Francis O'Brien, Director/Trustee
David H. Walsh, Director/Trustee
Fred G. Weiss, Director/Trustee
Donald C. Burke, Vice President and Treasurer
John M. Loffredo, Senior Vice President
William R. Bock, Vice President
Robert D. Sneeden, Vice President
Fred K. Stuebe, Vice President
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
BlackRock MuniYield Florida Insured Fund,
BlackRock MuniYield Michigan Insured Fund,
Inc. and BlackRock MuniYield New Jersey
Insured Fund, Inc.:
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares or Stock: Preferred Shares or Stock:
The Bank of New York The Bank of New York
101 Barclay Street - 11 East 101 Barclay Street - 7 West
New York, NY 10286 New York, NY 10286
BlackRock MuniYield Pennsylvania Insured Fund:
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Shares: Preferred Shares:
Computershare The Bank of New York
Trust Company, N.A. 101 Barclay Street - 7 West
P.O. Box 43010 New York, NY 10286
Providence, RI 02940-3010
SEMI-ANNUAL REPORTS APRIL 30, 2007
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their non-public personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to non-
public personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the non-public personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
SEMI-ANNUAL REPORTS APRIL 30, 2007
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third
quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are
available on the SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q
may also be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
SEMI-ANNUAL REPORTS APRIL 30, 2007
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 - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(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.
11(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 second fiscal quarter
of the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(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.
BlackRock MuniYield Michigan Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: June 19, 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 of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: June 19, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: June 19, 2007