UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6570
Name of Fund: MuniYield New Jersey Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, MuniYield New
Jersey Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing
address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 11/30/03
Date of reporting period: 12/01/02 - 05/31/03
Item 1 - Attach shareholder report
[LOGO] Merrill Lynch Investment Managers
Semi-Annual Report
May 31, 2003
MuniYield
New Jersey
Fund, Inc.
www.mlim.ml.com
MUNIYIELD NEW JERSEY FUND, INC.
The Benefits and
Risks of
Leveraging
MuniYield New Jersey Fund, Inc. utilizes leveraging to seek to enhance the yield
and net asset value of its Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Fund issues
Preferred Stock, which pays dividends at prevailing short-term interest rates,
and invests the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Stock shareholders in the form of dividends,
and the value of these portfolio holdings is reflected in the per share net
asset value of the Fund's Common Stock. However, in order to benefit Common
Stock shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates. Of course, increases in short-term interest rates would reduce (and even
eliminate) the dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities.
Swap
Agreements
The Fund may also invest in swap agreements, which are over-the-counter
contracts in which one party agrees to make periodic payments based on the
change in market value of a specified bond, basket of bonds, or index in return
for periodic payments based on a fixed or variable interest rate or the change
in market value of a different bond, basket of bonds or index. Swap agreements
may be used to obtain exposure to a bond or market without owning or taking
physical custody of securities.
MuniYield New Jersey Fund, Inc., May 31, 2003
DEAR SHAREHOLDER
For the six months ended May 31, 2003, the Common Stock of MuniYield New Jersey
Fund, Inc. had a net annualized yield of 6.06%, based on a period-end per share
net asset value of $15.89 and $.480 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +10.64%,
based on a change in per share net asset value from $14.84 to $15.89, and
assuming reinvestment of $.480 per share ordinary income dividends.
For the six-month period ended May 31, 2003, the Fund's Auction Market Preferred
Stock had an average yield of 1.00% for Series A and .92% for Series B.
For a description of the Fund's total investment return based on a change in the
per share market value (as measured by the trading price of the Fund's share on
the New York Stock Exchange), and assuming reinvestment of dividends, please
refer to the Financial Highlights section of the Financial Statements included
in this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset value. As a
result, total investment returns based on changes in the Fund's market value can
vary significantly from total investment return based on changes in the Fund's
net asset value.
The Municipal Market Environment
During the six months ended May 31, 2003, long-term interest rates generally
decreased with the bulk of this decline occurring in April and May. Early in the
period, geopolitical tensions and volatile equity valuations continued to
overshadow economic fundamentals as they have for most of the last 12 months. In
December 2002, the U.S. Commerce Department announced that third-quarter 2002
real U.S. gross domestic product grew at a 4% rate, well above the 1.3% rate
exhibited during the second quarter of 2002. Despite this, and other examples of
positive economic activity, U.S. Treasury bond yields declined more than 25
basis points (.25%) to 4.75% by late December as investors became increasingly
concerned about potential military conflicts with both Iraq and North Korea.
International political tensions moderated somewhat in early 2003 and U.S.
equity markets rallied strongly in reaction to President Bush's proposed
economic stimulus/tax-reduction proposal. By mid-January 2003, U.S. Treasury
bond yields rose to above 5% on expectations of stronger U.S. economic growth
later in 2003. Reacting to disappointing 2002 holiday sales and corporate
managements' attempts to scale back analysts' expectations of future earnings,
equity markets were unable to maintain their earlier gains. By the end of
February 2003, the Standard & Poor's (S&P) 500 Index had declined by
approximately 10%. Fearing an eventual U.S./Iraq military confrontation,
investors again sought the safety of U.S. Treasury obligations and the prices of
fixed income issues rose. By the end of February 2003, U.S. Treasury bond yields
had declined to 4.67%.
Bond yields continued to fall into early March. Once direct U.S. military action
against Iraq began, however, bond yields quickly rose. Prior uncertainty
surrounding the Iraqi situation was obviously removed and early U.S. military
successes fostered the hope that hostilities would be quickly and positively
concluded. Concurrently, the S&P 400 Index rose over 6% as investors, in part,
sold fixed income issues to purchase equities in anticipation of a strong U.S.
economic recovery once the Iraqi conflict was resolved. By mid-March, U.S.
Treasury bond yields again rose above 5%. However, there was growing sentiment
that hostilities may not be resolved in a matter of weeks, and U.S. Treasury
bond yields again declined to end the month at 4.81%.
For the six months ended May 31, 2003, long-term U.S. Treasury bond yields
ratcheted back to near 5% by mid-April as U.S. equity markets continued to
improve and the safe-haven premium U.S. Treasury issues had commanded prior to
the beginning of the Iraqi conflict continued to be withdrawn. However, with the
swift, positive resolution of the Iraqi war, investors quickly resumed their
focus on the fragile U.S. economic recovery. Business activity in the United
States has remained sluggish, especially job creation. Investors have also been
concerned that the recent SARS outbreak would have a material, negative impact
on world economic conditions, especially in China and Japan. First-quarter 2003
U.S. gross domestic product was released in late April initially estimating U.S.
economic activity to be growing at 1.60%, well below many analysts' assessments.
These factors, as well as the possibility that the Federal Reserve Board could
again lower short-term interest rates to encourage more robust U.S. economic
growth, pushed bond prices higher during the last two weeks of the period. By
April 30, 2003, long-term U.S. Treasury bond yields had declined to almost
4.75%.
At its early May meeting, the Federal Reserve Board left the short-term interest
rate target unchanged at 1.25%, its lowest level in more than 40 years. In its
accompanying statement, the Federal Reserve Board noted that while the pace of
U.S. economic growth was likely to expand going forward, the "probability of an
unwelcome substantial fall in inflation" was a matter of greater concern. Many
fixed income investors quickly concluded that since the Federal Reserve Board's
focus was now centered on preventing future deflation, additional reduction in
short-term interest rates could be expected. Given already low nominal interest
rates, these investors also believed that the Federal Reserve Board was likely
to purchase longer-term U.S. Treasury issues to push bond yields lower to
further stimulate U.S. economic activity, especially the already-vibrant housing
industry. These factors combined to trigger a major bond rally for the remainder
of the month. At the end of May 2003, long-term U.S. Treasury bond yields fell
to approximately 4.375%, a decline of approximately 40 basis points during the
month. For the past six months, long-term U.S. Treasury bond yields declined
over 65 basis points to their lowest levels since the early 1960s.
During the period ended May 31, 2003, long-term tax-exempt bond yields also
fell. However, yield volatility was reduced relative to that seen in U.S.
Treasury issues, as municipal bond prices were much less sensitive to worldwide
geopolitical pressures both on a daily and weekly basis. Tax-exempt bond prices
generally followed their taxable counterparts higher, responding to a more
positive U.S. fixed income environment and continued slow economic growth.
Municipal bond yields generally declined through February 2003. At February 28,
2003, long-term tax-exempt revenue bond yields, as measured by the Bond Buyer
Revenue Bond Index, fell to approximately 5.05%. However, similar to U.S.
Treasury bond yields, once military action began in Iraq, municipal bond yields
rose sharply to nearly 5.20% before declining to approximately 4.80% by the end
of May. For the past six months, long-term tax-exempt bond yields fell
approximately 45 basis points, slightly less than U.S. Treasury obligations.
A number of factors combined to generate consistently strong demand for
municipal bonds throughout the six-month period ended May 31, 2003. Generally
weak U.S. equity markets supported continued positive demand for tax-exempt
products as investors sought the relative security of fixed income issues. Also,
with tax-exempt money market rates near 1%, the demand for longer maturity
municipal issues increased as investors opted to buy longer maturity issues
rather than remain in cash reserves. Additionally, investors received
approximately $30 billion in January 2003 from bond maturities, coupon income
and proceeds from early redemptions. An additional $50 billion in similar monies
are expected to be received from June to August 2003. However, these positive
demand factors have not been totally able to offset the increase in tax-exempt
new-issue supply, preventing more significant declines in tax-exempt bond
yields. This modest underperformance served to make municipal bonds a
particularly attractive purchase relative to their taxable counterparts.
Throughout most of the yield curve, municipal bonds have been available for
purchase at yields near or exceeding those of comparable Treasury issues.
Compared to their recent historical averages of 82% - 88% of U.S. Treasury
yields, municipal bond yield ratios in their current 95% - 105% range are likely
to prove attractive to long-term investors.
Declining U.S. equity markets and escalating geopolitical pressures have
resulted in reduced economic activity and consumer confidence. It is important
to note that, despite all the recent negative factors impeding the growth of
U.S. businesses, the U.S. economy still grew at an approximate 2.50% rate for
all of 2002, twice that of 2001. Similar expansion is expected for early 2003.
Lower oil prices, reduced geopolitical uncertainties,
2 & 3
MuniYield New Jersey Fund, Inc., May 31, 2003
increased Federal spending for defense, and a sizeable proposed Federal tax cut
are all factors that should promote stronger economic growth later this year.
However, it is questionable to expect that business and investor confidence can
be so quickly restored as to trigger dramatic, explosive U.S. economic growth
and engender associated, large-scale interest rate increases. The resumption of
solid economic growth is likely to be a gradual process accompanied by equally
graduated increases in bond yields. Moderate economic growth, especially within
a context of negligible inflationary pressures, should not greatly endanger the
positive fixed income environments tax-exempt products currently enjoy.
Specific to New Jersey, the state faces a deteriorating fiscal situation as
continuing sluggish economic growth has resulted in lower-than-anticipated tax
receipts. In fiscal 2003, a projected deficit of roughly $5.3 billion was
addressed by a combination of spending reductions and revenue enhancements.
Among initiatives proposed by Governor McGreevey were a restructuring of the
Corporate Business Tax, a hike in cigarette taxes and the imposition of delayed
funding increases for municipalities, schools and certain state agencies. An
additional $1.8 billion was raised in August 2002 with the securitization of a
portion of the state's anticipated tobacco settlement revenues. While these
efforts were successful in balancing the budget, the significant reliance on
non-recurring revenues will require further measures in the next year as a means
to achieving structural balance. Indeed, on February 4, 2003, the Governor
introduced the state's fiscal 2004 budget totaling $23.7 billion in which it was
proposed to eliminate a projected $5 billion deficit with substantial job cuts,
$3.7 billion in spending reductions, and higher taxes on hotels, cigarettes and
casinos. In addition to these measures, the state chose to complete the
securitization of its share of tobacco settlement revenues arising from the 1998
Master Settlement Agreement with another $1.65 billion issue that closed in late
February 2003. Other issuance worthy of note occurred in March 2003 as the state
refinanced $375 million in taxable pension obligation bonds and subsequently
raised $500 million with the sale of Garden State Preservation Trust open space
and farmland preservation bonds. Importantly, in early April 2003, New Jersey's
Supreme Court, in a 4 - 3 vote, narrowly upheld the state's right to let
authorities issue lease-backed debt without voter approval. In its decision, the
Court ruled that because the state legislature must annually vote to approve the
lease payments, the debt does not constitute a general obligation of the State.
Currently, Moody's Investors Service assigns the state a rating of Aa2 with a
negative outlook, while Standard & Poor's maintains a rating of AA with a stable
outlook. While these ratings clearly reflect such underlying fundamental
strengths as a highly educated workforce and a diverse economic base, it seems
likely that prospects for the state's credit ratings hinge largely on the degree
to which policymakers successfully deal with the fiscal and economic challenges
that lie ahead.
Portfolio Strategy
During the six-month period ended May 31, 2003, portfolio activity consisted
primarily of the modest reallocation of portfolio assets into longer-dated
securities. In some cases, funding for these purchases came from the early
redemption of a portion of the Fund's more seasoned holdings as issuers sought
to refinance existing debt in the current low interest rate environment. Other
sources included proceeds from the sale of bonds that have been advance refunded
and, as a consequence, were valued at substantial premiums. Despite the
attractive coupon income typically associated with this type of bond, the
premiums tended to amortize at a rapid pace offsetting some of the
income-related benefits. Given the uncertainty over future reinvestment
prospects, we considered it prudent to lock in gains on the appreciated
securities and reinvest the proceeds in high quality bonds maturing in the
20-year - 25-year range. The shape of the municipal yield curve has become
unusually steep in recent months, offering an attractive opportunity to add
incremental yield to the portfolio by modestly extending the average maturity of
its holdings.
In terms of sector allocation, tax-backed obligations represented the single
largest portfolio commitment, comprising roughly 36% of portfolio assets. The
majority of these holdings were bonds issued by a broad cross section of local
school districts and municipalities as well as state agencies carrying the
implicit guarantee of the state. At approximately 18%, health care was the
portfolio's next largest sector holding, while transportation issues and
industrial development bonds comprised the next two largest concentrations, at
13% and 11%, respectively. Several of the investments within these two
categories represented exposure to higher-yielding, low investment grade
credits. Credit spreads within the municipal market remain wide on a historical
basis and, in our opinion, offer attractive value both in terms of total return
potential as well as income enhancement. Nevertheless, the overall credit
profile remained quite strong with about 85% of portfolio assets rated in one of
the top three rating categories by at least one of the major rating agencies.
In the months ahead, our portfolio strategy will be premised on the expectation
that an aggressively accommodative monetary policy, coupled with improving
consumer sentiment and business confidence, will spark an economic rebound.
Recently, prospects for the passage of an aggressive economic stimulus bill
improved dramatically, further raising the likelihood of stronger economic
growth. Nevertheless, fixed income markets remain well bid, as existing
geopolitical risks are likely to dominate investors' thoughts for the near term.
With this in mind, the portfolio remains positioned for stable-to-modestly
higher interest rates, while the adoption of a fully defensive stance appears
unwarranted until such time as these risks subside. As before, cash reserves
will be maintained at minimal levels, reflecting a strong emphasis on preserving
the Fund's competitive income distribution.
During the six-month period ended May 31, 2003, the Fund's borrowing costs
remained in the 1% - 1.50% range, with interest rates presently near 1%. These
very attractive funding levels, in combination with the steep tax-exempt yield
curve, continued to generate a significant income benefit to the Fund's Common
Stock shareholder. We do not expect any material reduction in the Fund's
borrowing costs in 2003, although expectations of an additional modest easing by
the Federal Reserve Board have recently risen. We expect the Fund's short-term
borrowing costs to remain at current attractive levels for the coming months.
However, should the spread between short-term and long-term interest rates
narrow, the benefits of leverage will decline and the yield to the Fund's Common
Stock shareholder will be reduced. (For a more complete explanation of the
benefits and risks of leveraging, see page 1 of this report to shareholders.)
In Conclusion
We appreciate your ongoing interest in MuniYield New Jersey Fund, Inc., and we
look forward to assisting you with your financial needs in the months and years
ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Kenneth A. Jacob
Kenneth A. Jacob
Senior Vice President
/s/ John M. Loffredo
John M. Loffredo
Senior Vice President
/s/ Theodore R. Jaeckel Jr.
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
June 16, 2003
4 & 5
MuniYield New Jersey Fund, Inc., May 31, 2003
PROXY RESULTS
During the six-month period ended May 31, 2003, MuniYield New Jersey Fund,
Inc.'s Common Stock shareholders voted on the following proposal. The proposal
was approved at a shareholders' meeting on April 28, 2003. A description of the
proposal and number of shares voted are as follows:
---------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
---------------------------------------------------------------------------------------------------------------------------
1. To elect the Fund's Directors: Terry K. Glenn 13,424,879 274,107
James H. Bodurtha 13,445,062 253,924
Joe Grills 13,440,402 258,584
Roberta Cooper Ramo 13,446,828 252,158
Robert S. Salomon, Jr. 13,440,674 258,312
Stephen B. Swensrud 13,436,066 262,920
---------------------------------------------------------------------------------------------------------------------------
During the six-month period ended May 31, 2003, MuniYield New Jersey Fund,
Inc.'s Preferred Stock shareholders (Series A & B) voted on the following
proposal. The proposal was approved at a shareholders' meeting on April 28,
2003. A description of the proposal and number of shares voted are as follows:
---------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
---------------------------------------------------------------------------------------------------------------------------
1. To elect the Fund's Board of Directors: Terry K. Glenn, James H. Bodurtha, Joe Grills,
Herbert I. London, Andre F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 3,758 0
---------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Municipal Bonds Value
====================================================================================================================================
New Jersey--128.8% AA NR* $ 1,000 Burlington County, New Jersey, Bridge Commission Revenue Bonds
(Governmental Leasing Program), 5.25% due 8/15/2020 $ 1,108
--------------------------------------------------------------------------------------------------------------
AAA Aaa 6,925 Cape May County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Bonds (Atlantic City Electric Company Project),
AMT, Series A, 7.20% due 11/01/2029 (d) 7,556
--------------------------------------------------------------------------------------------------------------
NR* Aaa 3,930 Delaware River Port Authority of Pennsylvania and New Jersey Revenue
Bonds, RIB, Series 396, 10.553% due 1/01/2019 (c)(e) 5,256
--------------------------------------------------------------------------------------------------------------
Essex County, New Jersey, Improvement Authority Revenue Bonds,
Series A (b):
NR* Aaa 2,470 4.50% due 10/01/2023 2,523
NR* Aaa 2,620 5% due 10/01/2028 2,775
--------------------------------------------------------------------------------------------------------------
Garden State Preservation Trust, New Jersey, Capital Appreciation
Revenue Bonds, Series B:
AAA Aaa 6,860 5.12%** due 11/01/2023 (c) 2,743
AAA Aaa 4,540 5.25%** due 11/01/2028 1,377
--------------------------------------------------------------------------------------------------------------
AAA Aaa 3,440 Garden State Preservation Trust, New Jersey, Revenue Bonds,
Series A, 5% due 11/01/2020 (c) 3,780
--------------------------------------------------------------------------------------------------------------
Gloucester County, New Jersey, Improvement Authority, Solid Waste
Resource Recovery Revenue Refunding Bonds (Waste Management Inc.
Project):
BBB NR* 1,180 AMT, Series B, 7% due 12/01/2029 1,358
BBB NR* 2,000 Series A, 6.85% due 12/01/2029 2,307
--------------------------------------------------------------------------------------------------------------
AAA Aaa 1,500 Hudson County, New Jersey, COP, Refunding, 6.25% due 12/01/2016 (d) 1,928
--------------------------------------------------------------------------------------------------------------
AAA NR* 13,950 Hudson County, New Jersey, Improvement Authority, Facility Lease
Revenue Refunding Bonds (Hudson County Lease Project), 5.375%
due 10/01/2024 (b) 15,269
--------------------------------------------------------------------------------------------------------------
Jackson Township, New Jersey, School District, GO (b):
AAA Aaa 3,090 5% due 4/15/2018 3,401
AAA Aaa 3,750 5% due 4/15/2019 4,101
--------------------------------------------------------------------------------------------------------------
Monmouth County, New Jersey, Improvement Authority, Governmental
Loan Revenue Refunding Bonds (a):
AAA Aaa 2,235 5% due 12/01/2015 2,481
AAA Aaa 2,345 5% due 12/01/2016 2,583
--------------------------------------------------------------------------------------------------------------
New Jersey EDA, EDR (Masonic Charity Foundation of New Jersey):
A+ NR* 600 5.25% due 6/01/2024 648
A+ NR* 685 5.25% due 6/01/2032 737
--------------------------------------------------------------------------------------------------------------
BBB- NR* 1,500 New Jersey EDA, First Mortgage Revenue Bonds (Fellowship Village),
Series C, 5.50% due 1/01/2028 1,468
--------------------------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Refunding Bonds (Fellowship
Village), Series A:
BBB- NR* 1,250 5.50% due 1/01/2018 1,266
BBB- NR* 3,500 5.50% due 1/01/2025 3,452
--------------------------------------------------------------------------------------------------------------
NR* Aaa 5,575 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI
Corporation), RIB, Series 371, 10.77% due 10/01/2022 (a)(e) 6,498
--------------------------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds:
A NR* 700 (Department of Human Services), 5% due 7/01/2011 789
A NR* 1,220 (Department of Human Services), 5% due 7/01/2012 1,379
A NR* 750 (Department of Human Services), 5% due 7/01/2022 790
AAA Aaa 2,400 (Educational Testing Service), Series B, 6.25% due 5/15/2005 (d)(g) 2,684
NR* Aaa 3,850 (Saint Barnabas Project), Series A, 6.30%** due 7/01/2024 (d) 1,470
AAA Aaa 5,000 (School Facilities--Construction), GO, Series A, 5.25%
due 6/15/2019 (a) 5,534
AAA Aaa 10,000 (Transportation Project), Sublease, Series A, 5.875%
due 5/01/2015 (c) 11,578
--------------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care
Corporation), 6.50% due 7/01/2024 (c) 2,668
--------------------------------------------------------------------------------------------------------------
Portfolio
Abbreviations
To simplify the listings of MuniYield New Jersey Fund, Inc.'s portfolio holdings
in the Schedule of Investments, we have abbreviated the names of many of the
securities according to the list on the 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
M/F Multi-Family
RIB Residual Interest Bonds
6 & 7
MuniYield New Jersey Fund, Inc., May 31, 2003
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Municipal Bonds Value
====================================================================================================================================
New Jersey NR* Aaa $ 3,335 New Jersey EDA, Water Facilities Revenue Bonds, RIB, AMT, Series
(concluded) 417, 12.25% due 11/01/2034 (b)(e) $ 3,912
--------------------------------------------------------------------------------------------------------------
AAA Aaa 1,850 New Jersey EDA, Water Facilities Revenue Refunding Bonds (American
Water), AMT, Series B, 5.125% due 4/01/2022 (a) 1,973
--------------------------------------------------------------------------------------------------------------
AAA Aaa 5,975 New Jersey Environmental Infrastructure Trust Revenue Bonds
(Environmental Infrastructure), Series A, 5.25% due 9/01/2017 6,731
--------------------------------------------------------------------------------------------------------------
A A2 1,305 New Jersey Health Care Facilities Financing Authority, Health System
Revenue Bonds (Catholic Health East), Series A, 5.375% due 11/15/2033 1,353
--------------------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
BB+ NR* 3,345 (Pascack Valley Hospital Association), 6.625% due 7/01/2036 3,380
AAA Aaa 4,000 (Robert Wood University), 5.70% due 7/01/2020 (a) 4,557
NR* Baa2 1,875 (Somerset Medical Center), 5.50% due 7/01/2033 1,894
NR* Baa1 6,640 (South Jersey Hospital), 6% due 7/01/2026 6,991
AA NR* 2,000 (Southern Ocean County Hospital), 5.125% due 7/01/2031 (f) 2,091
NR* Baa1 4,200 (Southern Ocean County Hospital), Series A, 6.25% due 7/01/2023 4,288
--------------------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding Bonds:
A- A3 1,020 (Atlantic City Medical Center), 6.25% due 7/01/2017 1,162
A- A3 2,185 (Atlantic City Medical Center), 5.75% due 7/01/2025 2,356
BBB NR* 2,000 (Christian Health Care Center), Series A, 5.25% due 7/01/2013 2,053
BBB+ NR* 5,500 (Holy Name Hospital), 6% due 7/01/2025 5,724
AAA Aaa 2,155 (Jersey Shore Medical Center), 6.75% due 7/01/2019 (a) 2,307
AAA Aaa 1,500 (Meridian Health System Obligation Group), 5.25% due 7/01/2019 (c) 1,642
AAA Aaa 2,250 (Meridian Health System Obligation Group), 5.375% due 7/01/2024 (c) 2,430
AAA Aaa 2,195 (Meridian Health System Obligation Group), 5.25% due 7/01/2029 (c) 2,324
AAA Aaa 1,000 (Monmouth Medical Center), Series C, 6.25% due 7/01/2004 (c)(g) 1,075
BBB- Baa3 2,075 (Saint Elizabeth Hospital Obligation Group), 6% due 7/01/2027 2,098
--------------------------------------------------------------------------------------------------------------
AAA Aaa 4,150 New Jersey State Educational Facilities Authority, Higher Education,
Capital Improvement Revenue Bonds, Series A, 5.125% due 9/01/2022 (a) 4,498
--------------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority Revenue Bonds
(Rowan University), Series B (b):
AAA Aaa 1,730 5.25% due 7/01/2017 1,937
AAA Aaa 1,620 5.25% due 7/01/2018 1,805
--------------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority, Revenue Refunding
Bonds:
AAA Aaa 3,870 (Princeton Theological Seminary), 5% due 7/01/2026 4,149
AA NR* 1,000 (Rider University), 5% due 7/01/2017 (f) 1,094
AAA Aaa 1,515 (William Paterson University), Series E, 5.25% due 7/01/2018 (h) 1,700
AAA Aaa 1,595 (William Paterson University), Series E, 5.25% due 7/01/2019 (h) 1,780
AAA Aaa 1,680 (William Paterson University), Series E, 5.25% due 7/01/2020 (h) 1,862
--------------------------------------------------------------------------------------------------------------
AA Aa2 2,105 New Jersey State, GO, AMT, 7.05% due 7/15/2005 (g) 2,383
--------------------------------------------------------------------------------------------------------------
AAA Aaa 8,600 New Jersey State Higher Education Assistance Authority, Student Loan
Revenue Bonds, AMT, Series A, 5.30% due 6/01/2017 (a) 9,171
--------------------------------------------------------------------------------------------------------------
AA- A1 2,500 New Jersey State Highway Authority, Garden State Parkway, General
Revenue Refunding Bonds, 5.625% due 1/01/2030 2,754
--------------------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT (d):
AAA Aaa 5,350 Series CC, 5.80% due 10/01/2020 5,799
AAA Aaa 1,385 Series M, 7% due 10/01/2026 1,405
AAA Aaa 3,335 Series U, 5.60% due 10/01/2012 3,582
--------------------------------------------------------------------------------------------------------------
AAA Aaa 1,925 New Jersey State Housing and Mortgage Finance Agency, M/F Housing
Revenue Refunding Bonds, Series A, 6.05% due 11/01/2020 (a) 2,017
--------------------------------------------------------------------------------------------------------------
New Jersey State Transit Corporation, COP:
AAA Aaa 7,150 6.50% due 4/01/2007 (c)(g) 8,457
A- A2 3,620 (Federal Transit Administration Grants), Series B, 5.75%
due 9/15/2014 4,202
--------------------------------------------------------------------------------------------------------------
AAA Aaa 5,250 New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Bonds, Series B, 5% due 6/15/2013 (a) 5,866
--------------------------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Refunding Bonds, Series B (d)(g):
AAA Aaa 1,540 6% due 12/15/2011 1,911
AAA Aaa 7,000 6% due 12/15/2011 8,704
--------------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 New Jersey State Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series A, 5.75% due 1/01/2019 (d) 5,748
--------------------------------------------------------------------------------------------------------------
AA- A1 5,000 Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, 93rd Series, 6.125% due 6/01/2094 5,990
--------------------------------------------------------------------------------------------------------------
AAA Aaa 4,435 Port Authority of New York and New Jersey, Revenue Bonds, Trust
Receipts, AMT, Class R, Series 10, 10.248% due 1/15/2017 (c)(e) 5,462
--------------------------------------------------------------------------------------------------------------
AAA Aaa 5,300 Port Authority of New York and New Jersey, Revenue Refunding Bonds,
DRIVERS, Series 153, 8.999% due 9/15/2012 (b)(e) 6,330
--------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (JFK International Air Terminal), AMT, Series 6, 5.75%
due 12/01/2022 (d) 2,215
--------------------------------------------------------------------------------------------------------------
South Jersey Port Corporation of New Jersey, Revenue Refunding Bonds:
A NR* 4,280 4.75% due 1/01/2018 4,467
A NR* 2,485 4.85% due 1/01/2019 2,587
A NR* 2,000 5% due 1/01/2020 2,120
--------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds:
A- Baa2 5,510 6.75% due 6/01/2039 5,126
A- Baa2 4,010 7% due 6/01/2041 3,906
--------------------------------------------------------------------------------------------------------------
Union County, New Jersey, Utilities Authority, Senior Lease Revenue
Refunding Bonds (Ogden Martin System of Union), AMT, Series A (a):
AAA Aaa 1,585 5.375% due 6/01/2017 1,683
AAA Aaa 1,175 5.375% due 6/01/2018 1,242
--------------------------------------------------------------------------------------------------------------
University of Medicine and Dentistry, New Jersey, Revenue Bonds,
Series A (a):
AAA Aaa 945 5.50% due 12/01/2018 1,092
AAA Aaa 1,900 5.50% due 12/01/2019 2,185
AAA Aaa 1,870 5.50% due 12/01/2020 2,141
AAA Aaa 1,435 5.50% due 12/01/2021 1,637
====================================================================================================================================
Pennsylvania--1.7% A- A2 3,645 Delaware River Joint Toll Bridge Commission, Pennsylvania, Bridge
Revenue Refunding Bonds, 5% due 7/01/2028 3,783
====================================================================================================================================
8 & 9
MuniYield New Jersey Fund, Inc., May 31, 2003
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
===================================================================================================================================
Puerto Rico--8.2% AAA Aaa $ 5,250 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series HH, 5.25% due 7/01/2029 (c) $ 5,723
-------------------------------------------------------------------------------------------------------------
NR* Baa2 2,000 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds (Cogeneration
Facility--AES Puerto Rico Project), AMT, 6.625% due 6/01/2026 2,108
-------------------------------------------------------------------------------------------------------------
AAA NR* 8,750 Puerto Rico Public Buildings Authority Revenue Bonds, DRIVERS,
Series 211, 9.10% due 7/01/2021 (d)(e) 10,754
===================================================================================================================================
Virgin Islands--1.6% BBB- Baa3 3,500 Virgin Islands Government Refinery Facilities Revenue Bonds
(Hovensa Coker Project), AMT, 6.50% due 7/01/2021 3,571
===================================================================================================================================
Total Municipal Bonds (Cost--$287,802)--140.3% 316,794
===================================================================================================================================
Shares
Held Short-Term Securities
===================================================================================================================================
1,103 CMA New Jersey Municipal Money Fund (i) 1,103
===================================================================================================================================
Total Short-Term Securities (Cost--$1,103)--0.5% 1,103
===================================================================================================================================
Total Investments (Cost--$288,905)--140.8% 317,897
Other Assets Less Liabilities--2.4% 5,323
Preferred Stock, at Redemption Value--(43.2%) (97,500)
--------
Net Assets Applicable to Common Stock--100.0% $225,720
========
===================================================================================================================================
* Not Rated.
** Represents a zero coupon; the interest rate shown reflects the effective
yield at the time of purchase by the Fund.
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in
effect at May 31, 2003.
(f) Radian Insured.
(g) Prerefunded.
(h) XL Capital Insured.
(i) Investments in companies considered to be an affiliate of the Fund (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) are as follows:
(in Thousands)
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
CMA New Jersey Municipal Money Fund $(47) $5
--------------------------------------------------------------------------
See Notes to Financial Statements.
STATEMENT OF NET ASSETS
As of May 31, 2003
=================================================================================================================================
Assets: Investments, at value (identified cost--$288,904,547) ............... $ 317,896,849
Cash ................................................................ 4,003
Interest receivable ................................................. 5,628,561
Prepaid expenses and other assets ................................... 18,698
-------------
Total assets ........................................................ 323,548,111
-------------
=================================================================================================================================
Liabilities: Payables:
Dividends to Common Stock shareholders ............................ $ 201,669
Investment adviser ................................................ 122,894
Other affiliates .................................................. 3,052 327,615
-------------
Accrued expenses and other liabilities .............................. 896
-------------
Total liabilities ................................................... 328,511
-------------
=================================================================================================================================
Preferred Stock: Preferred Stock, at redemption value, par value $.05 per share (2,400
Series A shares and 1,500 Series B shares of AMPS* issued and
outstanding at $25,000 per share liquidation preference) ............ 97,500,000
-------------
=================================================================================================================================
Net Assets Net assets applicable to Common Stock ............................... $ 225,719,600
Applicable to =============
Common Stock:
=================================================================================================================================
Analysis of Net Common Stock, par value $.10 per share (14,203,242 shares issued
Assets Applicable to and outstanding) .................................................... $ 1,420,324
Common Stock: Paid-in capital in excess of par .................................... 204,306,838
Undistributed investment income--net ................................ $ 2,055,590
Accumulated realized capital losses on investments--net ............. (11,055,454)
Unrealized appreciation on investments--net ......................... 28,992,302
-------------
Total accumulated earnings--net ..................................... 19,992,438
-------------
Total--Equivalent to $15.89 net asset value per share of Common Stock
(market price--$15.32) .............................................. $ 225,719,600
=============
=================================================================================================================================
* Auction Market Preferred Stock.
See Notes to Financial Statements.
10 & 11
MuniYield New Jersey Fund, Inc., May 31, 2003
STATEMENT OF OPERATIONS
For the Six Months Ended May 31, 2003
=================================================================================================================================
Investment Income: Interest ............................................................ $ 8,607,325
Dividends ........................................................... 4,644
-------------
Total income ........................................................ 8,611,969
-------------
=================================================================================================================================
Expenses: Investment advisory fees ............................................ $ 783,041
Commission fees ..................................................... 123,221
Accounting services ................................................. 57,596
Professional fees ................................................... 30,025
Transfer agent fees ................................................. 28,092
Printing and shareholder reports .................................... 18,449
Listing fees ........................................................ 14,425
Directors' fees and expenses ........................................ 12,265
Custodian fees ...................................................... 9,780
Pricing fees ........................................................ 7,124
Other ............................................................... 18,458
-------------
Total expenses before reimbursement ................................. 1,102,476
Reimbursement of expenses ........................................... (3,504)
-------------
Total expenses after reimbursement .................................. 1,098,972
-------------
Investment income--net .............................................. 7,512,997
-------------
=================================================================================================================================
Realized & Realized gain on investments--net ................................... 152,647
Unrealized Gain on Change in unrealized appreciation on investments--net ............... 14,616,255
Investments--Net: -------------
Total realized and unrealized gain on investments--net .............. 14,768,902
-------------
=================================================================================================================================
Dividends to Investment income--net .............................................. (471,759)
Preferred Stock -------------
Shareholders: Net Increase in Net Assets Resulting from Operations ................ $ 21,810,140
=============
=================================================================================================================================
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the
Months Ended Year Ended
May 31, November 30,
Increase (Decrease) in Net Assets: 2003 2002
===============================================================================================================================
Operations: Investment income--net ............................................ $ 7,512,997 $ 14,882,430
Realized gain (loss) on investments--net .......................... 152,647 (396,776)
Change in unrealized appreciation on investments--net ............. 14,616,255 1,227,623
Dividends and distributions to Preferred Stock shareholders ....... (471,759) (1,231,500)
------------- -------------
Net increase in net assets resulting from operations .............. 21,810,140 14,481,777
------------- -------------
===============================================================================================================================
Dividends & Investment income--net ............................................ (6,817,556) (13,628,966)
Distributions to Realized gain on investments--net ................................. -- (58,374)
Common Stock ------------- -------------
Shareholders: Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders ........................ (6,817,556) (13,687,340)
------------- -------------
===============================================================================================================================
Capital Stock Value of shares issued to Common Stock shareholders in reinvestment
Transactions: of dividends and distributions .................................... -- 315,425
------------- -------------
===============================================================================================================================
Net Assets Total increase in net assets applicable to Common Stock ........... 14,992,584 1,109,862
Applicable to Beginning of period ............................................... 210,727,016 209,617,154
Common Stock: ------------- -------------
End of period* .................................................... $ 225,719,600 $ 210,727,016
============= =============
===============================================================================================================================
* Undistributed investment income--net .............................. $ 2,055,590 $ 1,831,908
============= =============
===============================================================================================================================
See Notes to Financial Statements.
12 & 13
MuniYield New Jersey Fund, Inc., May 31, 2003
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been
derived from information provided in the financial For the Six For the
statements. Months Ended Year Ended November 30,
May 31, -----------------------------------------
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
==================================================================================================================================
Per Share Net asset value, beginning of period ............... $ 14.84 $ 14.78 $ 13.99 $ 13.60 $ 15.93
Operating -------- -------- -------- -------- --------
Performance:+ Investment income--net ............................. .53@@@ 1.06 1.08 1.01 1.06
Realized and unrealized gain (loss) on
investments--net ................................... 1.03 .05 .78 .45 (1.98)
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net ........................... (.03) (.09) (.20) (.26) (.19)
Realized gain on investments--net ................ -- --@@ -- -- --
In excess of realized gain on investments--net ... -- -- -- -- (.04)
-------- -------- -------- -------- --------
Total from investment operations ................... 1.53 1.02 1.66 1.20 (1.15)
-------- -------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net ........................... (.48) (.96) (.87) (.81) (.87)
Realized gain on investments--net ................ -- --@@ -- -- --
In excess of realized gain on investments--net ... -- -- -- -- (.31)
-------- -------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders ....................................... (.48) (.96) (.87) (.81) (1.18)
-------- -------- -------- -------- --------
Net asset value, end of period ..................... $ 15.89 $ 14.84 $ 14.78 $ 13.99 $ 13.60
======== ======== ======== ======== ========
Market price per share, end of period .............. $ 15.32 $ 14.07 $ 14.41 $12.8125 $ 12.25
======== ======== ======== ======== ========
==================================================================================================================================
Total Investment Based on market price per share .................... 12.32%@ 4.27% 19.45% 11.55% (20.75%)
Return:** ======== ======== ======== ======== ========
Based on net asset value per share ................. 10.64%@ 7.22% 12.20% 9.71% (7.48%)
======== ======== ======== ======== ========
==================================================================================================================================
Ratios Based on Total expenses, net of reimbursement and
Average Net Assets excluding reorganization expenses*** ............... 1.02%* 1.05% 1.06% 1.10% 1.05%
Of Common Stock: ======== ======== ======== ======== ========
Total expenses, excluding reorganization expenses*** 1.02%* 1.05% 1.06% 1.10% 1.05%
======== ======== ======== ======== ========
Total expenses*** .................................. 1.02%* 1.05% 1.06% 1.29% 1.05%
======== ======== ======== ======== ========
Total investment income--net*** .................... 6.98%* 7.06% 7.26% 7.59% 7.16%
======== ======== ======== ======== ========
Amount of dividends to Preferred Stock shareholders .44%* .58% 1.33% 1.91% 1.25%
======== ======== ======== ======== ========
Investment income--net, to Common Stock shareholders 6.54%* 6.48% 5.93% 5.68% 5.91%
======== ======== ======== ======== ========
==================================================================================================================================
Ratios Based on Total expenses, net of reimbursement and excluding
Average Net Assets reorganization expenses ............................ .70%* .72% .72% .73% .73%
Of Common & ======== ======== ======== ======== ========
Preferred Stock:*** Total expenses, excluding reorganization expenses .. .71%* .72% .72% .73% .73%
======== ======== ======== ======== ========
Total expenses ..................................... .71%* .72% .72% .86% .73%
======== ======== ======== ======== ========
Total investment income--net ....................... 4.81%* 4.83% 4.95% 5.04% 4.95%
======== ======== ======== ======== ========
==================================================================================================================================
Ratios Based on Dividends to Preferred Stock shareholders .......... .97%* 1.25% 2.84% 3.77% 2.81%
Average Net Assets ======== ======== ======== ======== ========
Of Preferred Stock:
==================================================================================================================================
Supplemental Net assets, applicable to Common Stock, end of
Data: period (in thousands) .............................. $225,720 $210,727 $209,617 $198,407 $123,760
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) ..................................... $ 97,500 $ 97,500 $ 97,500 $ 97,500 $ 60,000
======== ======== ======== ======== ========
Portfolio turnover ................................. 17.81% 41.47% 52.03% 54.78% 57.94%
======== ======== ======== ======== ========
==================================================================================================================================
Leverage: Asset coverage per $1,000 .......................... $ 3,315 $ 3,161 $ 3,150 $ 3,035 $ 3,063
======== ======== ======== ======== ========
==================================================================================================================================
Dividends Per Share Series A--Investment income--net ................... $ 125 $ 325 $ 723 $ 962 $ 703
On Preferred Stock ======== ======== ======== ======== ========
Outstanding:++ Series B--Investment income--net ................... $ 115 $ 292 $ 702 $ 739 --
======== ======== ======== ======== ========
==================================================================================================================================
* 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 Stock shareholders.
+ Certain prior year amounts have been reclassified to conform to current
year presentation.
++ The Fund's Preferred Stock was issued on November 30, 1992 for Series A
and February 7, 2000 for Series B.
@ Aggregate total investment return.
@@ Amount is less than $(.01) per share.
@@@ Based on average shares outstanding.
See Notes to Financial Statements.
14 & 15
MuniYield New Jersey Fund, Inc., May 31, 2003
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New Jersey Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, closed-end management
investment company. The Fund's financial statements are prepared in conformity
with accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. These unaudited
financial statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal, recurring nature. The Fund
determines and makes available for publication the net asset value of its Common
Stock on a weekly basis. The Fund's Common Stock is listed on the New York Stock
Exchange under the symbol MYJ. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter markets and are valued at the most recent bid price or yield
equivalent as obtained by the Fund's pricing service from dealers that make
markets in such securities. Financial futures contracts and options thereon,
which are traded on exchanges, are valued at their closing prices as of the
close of such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price (options
written) or the last bid price (options purchased). Securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund, including valuations
furnished by a pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general supervision of the
Board of Directors.
(b) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movement and movements in the securities
markets. Losses may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
o Financial futures contracts -- The Fund may purchase or sell financial futures
contracts and options on such futures contracts. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at a specific
price or yield. Upon entering into a contract, the Fund deposits and maintains
as collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
o Options -- The Fund is authorized to write covered call options and purchase
put options. When the Fund writes an option, an amount equal to the premium
received by the Fund is reflected as an asset and an equivalent liability. The
amount of the liability is subsequently marked to market to reflect the current
market value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Fund enters
into a closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
o Forward interest rate swaps -- The Fund is authorized to enter into forward
interest rate swaps. In a forward interest rate swap, the Fund and the
counterparty agree to pay or receive interest on a specified notional contract
amount, commencing on a specified future effective date, unless terminated
earlier. The value of the agreement is determined by quoted fair values received
daily by the Fund from the counterparty. When the agreement is closed, the Fund
records a realized gain or loss in an amount equal to the value of the
agreement.
(c) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(d) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(e) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML
& Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate of .50% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock. For the six months ended May 31,
2003, FAM reimbursed the Fund in the amount of $3,504.
For the six months ended May 31, 2003, the Fund reimbursed FAM $3,578 for
certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended May 31, 2003 were $56,107,994 and $55,162,203, respectively.
Net realized gains (losses) for the six months ended May 31, 2003 and net
unrealized gains as of May 31, 2003 were as follows:
--------------------------------------------------------------------------------
Realized Unrealized
Gains (Losses) Gains
--------------------------------------------------------------------------------
Long-term investments ................... $ 660,398 $28,992,302
Financial futures contracts ............. (507,751) --
----------- -----------
Total ................................... $ 152,647 $28,992,302
=========== ===========
--------------------------------------------------------------------------------
As of May 31, 2003, net unrealized appreciation for Federal income tax purposes
aggregated $29,200,401, of which $29,276,991 related to appreciated securities
and $76,590 related to depreciated securities. The aggregate cost of investments
at May 31, 2003 for Federal income tax purposes was $288,696,448.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $.10 per share, all of which were initially classified as
Common Stock. The Board
16 & 17
MuniYield New Jersey Fund, Inc., May 31, 2003
NOTES TO FINANCIAL STATEMENTS (concluded)
of Directors is authorized, however, to reclassify any unissued shares of stock
without approval of holders of Common Stock.
Common Stock
Shares issued and outstanding during the six months ended May 31, 2003 and the
year ended November 30, 2002 remained constant.
Preferred Stock
AMPS are redeemable shares of Preferred Stock of the Fund, with a par value of
$.05 per share and a liquidation preference of $25,000 per share plus accrued
and unpaid dividends, that entitle their holders to receive cash dividends at an
annual rate that may vary for the successive dividend periods. The yields in
effect at May 31, 2003 were as follows: Series A, 1.08% and Series B, 1.05%.
Shares issued and outstanding during the six months ended May 31, 2003 and the
year ended November 30, 2002 remained constant.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended May 31, 2003, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of FAM, earned $61,229 as commissions.
5. Capital Loss Carryforward:
On November 30, 2002, the Fund had a net capital loss carryforward of
$8,257,247, of which $1,401,088 expires in 2007 and $6,856,159 expires in 2008.
This amount will be available to offset like amounts of any future taxable
gains.
6. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.080000 per share on June 27, 2003 to shareholders of record on June
16, 2003.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more consistent yield to the current trading price of shares
of Common Stock of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any month pay out such accumulated but undistributed income in addition to
net investment income earned in that month. As a result, the dividends paid by
the Fund for any particular month may be more or less than the amount of net
investment income earned by the Fund during such month. The Fund's current
accumulated but undistributed net investment income, if any, is disclosed in the
Statement of Net Assets, which comprises part of the financial information
included in this report.
QUALITY PROFILE
The quality ratings of securities in the Fund as of May 31, 2003 were as
follows:
--------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Total Investments
--------------------------------------------------------------------------------
AAA/Aaa 70.5%
AA/Aa 4.9
A/A 11.1
BBB/Baa 12.1
BB/Ba 1.1
NR (Not Rated) 0.3
--------------------------------------------------------------------------------
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
James H. Bodurtha, Director
Joe Grills, Director
Herbert I. London, Director
Andre F. Perold, Director
Roberta Cooper Ramo, Director
Robert S. Salomon, Jr., Director
Stephen B. Swensrud, Director
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Theodore R. Jaeckel Jr., Vice President
Donald C. Burke, Vice President and Treasurer
Brian D. Stewart, Secretary
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100 Church Street
New York, NY 10286
NYSE Symbol
MYJ
[LOGO] Merrill Lynch Investment Managers
[GRAPHIC OMITTED]
MuniYield New Jersey Fund, Inc. seeks to provide shareholders with as high a
level of current income exempt from Federal and New Jersey 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 tax and New Jersey personal income taxes.
This report, including the financial information herein, is transmitted to
shareholders of MuniYield New Jersey Fund, Inc. for their information. It is not
a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. The Fund has leveraged its
Common Stock and intends to remain leveraged by issuing Preferred Stock to
provide the Common Stock shareholders with a potentially higher rate of return.
Leverage creates risks for Common Stock shareholders, including the likelihood
of greater volatility of net asset value and market price of shares of the
Common Stock, and the risk that fluctuations in the short-term dividend rates of
the Preferred Stock may affect the yield to Common Stock shareholders.
Statements and other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
on www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
website at http://www.sec.gov.
MuniYield New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
[RECYCLED LOGO] Printed on post-consumer recycled paper #16381--5/03
Item 2 - Did registrant adopt a code of ethics, as of the end of the period
covered by this report, that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party? If not, why not? Briefly describe any amendments or
waivers that occurred during the period. State here if code of
ethics/amendments/waivers are on website and give website address-.
State here if fund will send code of ethics to shareholders without
charge upon request-- N/A (annual requirement only and not required to
be answered until the registrant's fiscal year-end on or after July 15,
2003)
Item 3 - Did the registrant's board of directors determine that the registrant
either: (i) has at least one audit committee financial expert serving
on its audit committee; or (ii) does not have an audit committee
financial expert serving on its audit committee? If yes, disclose name
of financial expert and whether he/she is "independent," (fund may, but
is not required, to disclose name/independence of more than one
financial expert) If no, explain why not. -N/A (annual requirement only
and not required to be answered until the registrant's fiscal year-end
on or after July 15, 2003)
Item 4 - Disclose annually only (not answered until December 15, 2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last two
fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's
annual financial statements or services that are
normally provided by the accountant in connection with
statutory and regulatory filings or engagements for
those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and related
services by the principal accountant that are
reasonably related to the performance of the
audit of the registrant's financial statements
and are not reported under paragraph (a) of this
Item. Registrants shall describe the nature of
the services comprising the fees disclosed under
this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and
tax planning. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services provided
by the principal accountant, other than the services
reported in paragraphs (a) through (c) of this Item.
Registrants shall describe the nature of the
services comprising the fees disclosed under this
category. N/A.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A.
(e)(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended on
the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-3 under the
Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d) under
the Exchange Act regarding an exemption from the listing standards for
audit committees. N/A
(Listed issuers must be in compliance with the new listing rules by the
earlier of their first annual shareholders meeting after January 2004,
or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in their portfolio,
describe the policies and procedures that it uses to determine how to
vote proxies relating to those portfolio securities.
Proxy Voting Policies and Procedures
Each Fund's Board of Directors/Trustees has delegated to Merrill Lynch
Investment Managers, L.P. and/or Fund Asset Management, L.P. (the
"Investment Adviser") authority to vote all proxies relating to the Fund's
portfolio securities. The Investment Adviser has adopted policies and
procedures ("Proxy Voting Procedures") with respect to the voting of
proxies related to the portfolio securities held in the account of one or
more of its clients, including a Fund. Pursuant to these Proxy Voting
Procedures, the Investment Adviser's primary objective when voting proxies
is to make proxy voting decisions solely in the best interests of each
Fund and its shareholders, and to act in a manner that the Investment
Adviser believes is most likely to enhance the economic value of the
securities held by the Fund. The Proxy Voting Procedures are designed to
ensure that that the Investment Adviser considers the interests of its
clients, including the Funds, and not the interests of the Investment
Adviser, when voting proxies and that real (or perceived) material
conflicts that may arise between the Investment Adviser's interest and
those of the Investment Adviser's clients are properly addressed and
resolved.
In order to implement the Proxy Voting Procedures, the Investment Adviser
has formed a Proxy Voting Committee (the "Committee"). The Committee is
comprised of the Investment Adviser's Chief Investment Officer (the
"CIO"), one or more other senior investment professionals appointed by the
CIO, portfolio managers and investment analysts appointed by the CIO and
any other personnel the CIO deems appropriate. The Committee will also
include two non-voting representatives from the Investment Adviser's Legal
department appointed by the Investment Adviser's General Counsel. The
Committee's membership shall be limited to full-time employees of the
Investment Adviser. No person with any investment banking, trading, retail
brokerage or research responsibilities for the Investment Adviser's
affiliates may serve as a member of the Committee or participate in its
decision making (except to the extent such person is asked by the
Committee to present information to the Committee, on the same basis as
other interested knowledgeable parties not affiliated with the Investment
Adviser might be asked to do so). The Committee determines how to vote the
proxies of all clients, including a Fund, that have delegated proxy voting
authority to the Investment Adviser and seeks to ensure that all votes are
consistent with the best interests of those clients and are free from
unwarranted and inappropriate influences. The Committee establishes
general proxy voting policies for the Investment Adviser and is
responsible for determining how those policies are applied to specific
proxy votes, in light of each issuer's unique structure, management,
strategic options and, in certain circumstances, probable economic and
other anticipated consequences of alternate actions. In so doing, the
Committee may determine to vote a particular proxy in a manner contrary to
its generally stated policies. In addition, the Committee will be
responsible for ensuring that all reporting and recordkeeping requirements
related to proxy voting are fulfilled.
The Committee may determine that the subject matter of a recurring proxy
issue is not suitable for general voting policies and requires a
case-by-case determination. In such cases, the Committee may elect not to
adopt a specific voting policy applicable to that issue. The Investment
Adviser believes that certain proxy voting issues require investment
analysis - such as approval of mergers and other significant corporate
transactions - akin to investment decisions, and are, therefore, not
suitable for general guidelines. The Committee may elect to adopt a common
position for the Investment Adviser on certain proxy votes that are akin
to investment decisions, or determine to permit the portfolio manager to
make individual decisions on how best to maximize economic value for a
Fund (similar to normal buy/sell investment decisions made by such
portfolio managers). While it is expected that the Investment Adviser will
generally seek to vote proxies over which the Investment Adviser exercises
voting authority in a uniform manner for all the Investment Adviser's
clients, the Committee, in conjunction with a Fund's portfolio manager,
may determine that the Fund's specific circumstances require that its
proxies be voted differently.
To assist the Investment Adviser in voting proxies, the Committee has
retained Institutional Shareholder Services ("ISS"). ISS is an independent
adviser that specializes in providing a variety of fiduciary-level
proxy-related services to institutional investment managers, plan
sponsors, custodians, consultants, and other institutional investors. The
services provided to the Investment Adviser by ISS include in-depth
research, voting recommendations (although the Investment Adviser is not
obligated to follow such recommendations), vote execution, and
recordkeeping. ISS will also assist the Fund in fulfilling its reporting
and recordkeeping obligations under the Investment Company Act.
The Investment Adviser's Proxy Voting Procedures also address special
circumstances that can arise in connection with proxy voting. For
instance, under the Proxy Voting Procedures, the Investment Adviser
generally will not seek to vote proxies related to portfolio securities
that are on loan, although it may do so under certain circumstances. In
addition, the Investment Adviser will vote proxies related to securities
of foreign issuers only on a best efforts basis and may elect not to vote
at all in certain countries where the Committee determines that the costs
associated with voting generally outweigh the benefits. The Committee may
at any time override these general policies if it determines that such
action is in the best interests of a Fund.
From time to time, the Investment Adviser may be required to vote proxies in
respect of an issuer where an affiliate of the Investment Adviser (each, an
"Affiliate"), or a money management or other client of the Investment Adviser
(each, a "Client") is involved. The Proxy Voting Procedures and the Investment
Adviser's adherence to those procedures are designed to address such conflicts
of interest. The Committee intends to strictly adhere to the Proxy Voting
Procedures in all proxy matters, including matters involving Affiliates and
Clients. If, however, an issue representing a non-routine matter that is
material to an Affiliate or a widely known Client is involved such that the
Committee does not reasonably believe it is able to follow its guidelines (or if
the particular proxy matter is not addressed by the guidelines) and vote
impartially, the Committee may, in its discretion for the purposes of ensuring
that an independent determination is reached, retain an independent fiduciary to
advise the Committee on how to vote or to cast votes on behalf of the Investment
Adviser's clients.
In the event that the Committee determines not to retain an independent
fiduciary, or it does not follow the advice of such an independent
fiduciary, the powers of the Committee shall pass to a subcommittee,
appointed by the CIO (with advice from the Secretary of the Committee),
consisting solely of Committee members selected by the CIO. The CIO shall
appoint to the subcommittee, where appropriate, only persons whose job
responsibilities do not include contact with the Client and whose job
evaluations would not be affected by the Investment Adviser's relationship
with the Client (or failure to retain such relationship). The subcommittee
shall determine whether and how to vote all proxies on behalf of the
Investment Adviser's clients or, if the proxy matter is, in their
judgment, akin to an investment decision, to defer to the applicable
portfolio managers, provided that, if the subcommittee determines to alter
the Investment Adviser's normal voting guidelines or, on matters where the
Investment Adviser's policy is case-by-case, does not follow the voting
recommendation of any proxy voting service or other independent fiduciary
that may be retained to provide research or advice to the Investment
Adviser on that matter, no proxies relating to the Client may be voted
unless the Secretary, or in the Secretary's absence, the Assistant
Secretary of the Committee concurs that the subcommittee's determination
is consistent with the Investment Adviser's fiduciary duties.
In addition to the general principles outlined above, the Investment
Adviser has adopted voting guidelines with respect to certain recurring
proxy issues that are not expected to involve unusual circumstances. These
policies are guidelines only, and the Investment Adviser may elect to vote
differently from the recommendation set forth in a voting guideline if the
Committee determines that it is in a Fund's best interest to do so. In
addition, the guidelines may be reviewed at any time upon the request of a
Committee member and may be amended or deleted upon the vote of a majority
of Committee members present at a Committee meeting at which there is a
quorum.
The Investment Adviser has adopted specific voting guidelines with respect
to the following proxy issues:
o Proposals related to the composition of the Board of Directors of issuers
other than investment companies. As a general matter, the Committee
believes that a company's Board of Directors (rather than shareholders) is
most likely to have access to important, nonpublic information regarding a
company's business and prospects, and is therefore best-positioned to set
corporate policy and oversee management. The Committee, therefore,
believes that the foundation of good corporate governance is the election
of qualified, independent corporate directors who are likely to diligently
represent the interests of shareholders and oversee management of the
corporation in a manner that will seek to maximize shareholder value over
time. In individual cases, the Committee may look at a nominee's history
of representing shareholder interests as a director of other companies or
other factors, to the extent the Committee deems relevant.
o Proposals related to the selection of an issuer's independent auditors. As
a general matter, the Committee believes that corporate auditors have a
responsibility to represent the interests of shareholders and provide an
independent view on the propriety of financial reporting decisions of
corporate management. While the Committee will generally defer to a
corporation's choice of auditor, in individual cases, the Committee may
look at an auditors' history of representing shareholder interests as
auditor of other companies, to the extent the Committee deems relevant.
o Proposals related to management compensation and employee benefits. As a
general matter, the Committee favors disclosure of an issuer's
compensation and benefit policies and opposes excessive compensation, but
believes that compensation matters are normally best determined by an
issuer's board of directors, rather than shareholders. Proposals to
"micro-manage" an issuer's compensation practices or to set arbitrary
restrictions on compensation or benefits will, therefore, generally not be
supported.
o Proposals related to requests, principally from management, for approval
of amendments that would alter an issuer's capital structure. As a general
matter, the Committee will support requests that enhance the rights of
common shareholders and oppose requests that appear to be unreasonably
dilutive.
o Proposals related to requests for approval of amendments to an issuer's
charter or by-laws. As a general matter, the Committee opposes poison pill
provisions.
o Routine proposals related to requests regarding the formalities of
corporate meetings.
o Proposals related to proxy issues associated solely with holdings of
investment company shares. As with other types of companies, the Committee
believes that a fund's Board of Directors (rather than its shareholders)
is best-positioned to set fund policy and oversee management. However, the
Committee opposes granting Boards of Directors authority over certain
matters, such as changes to a fund's investment objective, that the
Investment Company Act envisions will be approved directly by
shareholders.
Proposals related to limiting corporate conduct in some manner that
relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are
inappropriate forums for discussion of larger social issues, and opposes
shareholder resolutions "micromanaging" corporate conduct or requesting
release of information that would not help a shareholder evaluate an
investment in the corporation as an economic matter. While the Committee
is generally supportive of proposals to require corporate disclosure of
matters that seem relevant and material to the economic interests of
shareholders, the Committee is generally not supportive of proposals to
require disclosure of corporate matters for other purposes.
Item 8 -- Reserved
Item 9(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b) -- There were no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request
without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the Sarbanes-Oxley Act.
Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MuniYield New Jersey Fund, Inc.
By: /s/ Terry K. Glenn
-------------------------------
Terry K. Glenn,
President of
MuniYield New Jersey Fund, Inc.
Date: July 23, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Terry K. Glenn
-------------------------------
Terry K. Glenn,
President of
MuniYield New Jersey Fund, Inc.
Date: July 23, 2003
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield New Jersey Fund, Inc.
Date: July 23, 2003
Attached hereto as a furnished exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.