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 811-06570

 

Name of Fund: BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield New Jersey Fund, Inc., 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 07/31/2013

 

Date of reporting period: 07/31/2013

 

Item 1 – Report to Stockholders

 
 

JULY 31, 2013

ANNUAL REPORT
 

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

Not FDIC Insured  •  May Lose Value  •  No Bank Guarantee
               
 
  

Table of Contents

       Page    
Dear Shareholder
            3    
Annual Report:
                 
Municipal Market Overview
            4    
The Benefits and Risks of Leveraging
            5    
Derivative Financial Instruments
           5    
Fund Summaries
            6    
Financial Statements:
                     
Schedules of Investments
           16    
Statements of Assets and Liabilities
           35    
Statements of Operations
           36    
Statements of Changes in Net Assets
           37    
Statements of Cash Flows
           40    
Financial Highlights
           41    
Notes to Financial Statements
           46    
Report of Independent Registered Public Accounting Firm
           55    
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
           56    
Automatic Dividend Reinvestment Plans
           60    
Officers and Directors
           61    
Additional Information
            64    
2 ANNUAL REPORT JULY 31, 2013
 
  
Dear Shareholder 

One year ago, risk assets (such as equities) were on the rise as weakening global economic data spurred increasing optimism that the world’s largest central banks would intervene to stimulate growth. This much-anticipated monetary policy easing ultimately came in September when the European Central Bank (“ECB”) and the US Federal Reserve announced their plans for increasing global liquidity. Although financial markets worldwide were buoyed by these aggressive policy actions, risk assets weakened later in the fall of 2012. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China. In the United States, investors became increasingly concerned about the “fiscal cliff” of tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. High levels of global market volatility persisted through year-end due to fears that bipartisan gridlock would preclude a timely resolution, putting the US economy at high risk for recession. As 2013 began, the worst of the fiscal cliff was averted with a last-minute tax deal.

Investors shook off the nerve-wracking finale to 2012 and the New Year started with a powerful relief rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaling modest but broad-based improvements in the world’s major economies helped propel the rally. Underlying this aura of comfort was the absence of negative headlines from Europe. Global equities surged, while rising US Treasury yields pressured high quality fixed income assets. (Bond prices move in the opposite direction of yields.)

However, February brought a slowdown in global economic momentum and the pace of the rally moderated. In the months that followed, US equities outperformed international markets, as the US economic recovery showed greater stability compared to most other regions. Slow, but positive, growth in the United States was sufficient to support corporate earnings, while uncomfortably high unemployment reinforced investors’ expectations that the US Federal Reserve would keep interest rates low. International markets experienced higher levels of volatility as political instability in Italy and a severe banking crisis in Cyprus reminded investors that the eurozone was still vulnerable to a number of macro risks, while a poor outlook for European economies also dampened sentiment. Emerging markets significantly lagged the rest of the world as growth in these economies (particularly China and Brazil) fell short of expectations.

After peaking in late May, financial markets broadly sold off due to concerns about the US Federal Reserve reducing monetary stimulus. Volatility picked up considerably as investors abruptly retreated from risk assets and a sharp and dramatic rise in US Treasury yields resulted in tumbling prices for higher-quality fixed income investments. The downswing bottomed out in late June as a more dovish tone from the US central bank served to quell the volatility in interest rates, while improving economic data and a positive outlook for corporate earnings helped the markets regain strength in July, with major US equity indices regularly hitting new record highs.

Despite the swings in the markets in the second quarter, most risk asset classes generated positive returns for the 6- and 12-month periods ended July 31, 2013. US equities were particularly strong. International equities also performed well, although political and economic uncertainty in Europe resulted in less impressive gains for the last six months. Emerging markets suffered the impact of slowing growth and concerns about a shrinking global money supply. Extreme levels of interest rate volatility in the final months of the period resulted in poor performance for fixed income markets, especially US Treasury bonds and other higher quality sectors such as tax-exempt municipals and investment grade corporate bonds. The high yield sector performed relatively better as demand continued to be supported by investors’ ongoing search for income in the low-rate environment. Short-term interest rates remained near zero, keeping yields on money market securities near historical lows.

Market conditions remain volatile, and investors still face a number of uncertainties in the current environment. At BlackRock, we believe investors need to think globally and extend their scope across a broader array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit www.blackrock.com for further insight about investing in today’s world.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC


“
 Despite the swings in the markets in the second quarter, most risk asset classes generated positive returns for the 6- and 12-month periods ended July 31, 2013.”

Rob Kapito
President, BlackRock Advisors, LLC

Total Returns as of July 31, 2013

         6-month      12-month
US large cap equities (S&P 500® Index)
            13.73 %           25.00 %  
US small cap equities (Russell 2000® Index)
            16.66            34.76   
International equities (MSCI Europe, Australasia, Far East Index)
            4.11            23.48   
Emerging market equities (MSCI Emerging Markets Index)
            (9.87 )           1.95   
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)
            0.05            0.11   
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)
            (3.71 )           (6.50 )  
US investment grade bonds (Barclays US Aggregate Bond Index)
            (1.62 )           (1.91 )  
Tax-exempt municipal bonds (S&P Municipal Bond Index)
            (4.11 )           (1.99 )  
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)
            1.97            9.49   

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


  THIS PAGE NOT PART OF YOUR FUND REPORT 3
 
  
Municipal Market Overview 

For the Reporting Period Ended July 31, 2013

Municipal Market Conditions

During the majority of the period, municipal bond supply was met with strong demand as investors were starved for yield in the low-rate, low-return environment. Investors poured into municipal bond mutual funds, favoring long-duration and high-yield funds as they tend to provide higher levels of income.

However, municipal bond funds saw robust outflows in the last three months of the period, leaving net flows essentially flat for the 12-month period as a whole (based on data from the Investment Company Institute). Market conditions turned less favorable in May when signals from the US Federal Reserve suggesting a retrenchment of its bond-buying stimulus program led to rising interest rates and waning demand. (Bond prices fall as rates rise.) High levels of interest rate volatility resulted in a sharp curtailment of tax-exempt issuance in May, June and July. However, from a historical perspective, total new issuance for the 12 months ended July 31, 2013 remained relatively strong at $358 billion (down modestly from the $369 billion issued in the prior 12-month period). A significant portion of new supply during this period (roughly 60%) was attributable to refinancing activity as issuers took advantage of lower interest rates to reduce their borrowing costs. Total new supply was also supported by recent activity in the taxable market, where taxable-municipal issuance was up 58% year-over-year. 

S&P Municipal Bond Index
Total Returns as of July 31, 2013
  6 months: (4.11)%
12 months: (1.99)%

  

A Closer Look at Yields

From July 31, 2012 to July 31, 2013, municipal yields increased by 136 basis points (“bps”) from 2.84% to 4.20% on AAA-rated 30-year municipal bonds, while increasing 101 bps from 1.66% to 2.67% on 10-year bonds and rising another 62 bps from 0.65% to 1.27% on 5-year issues (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve remained relatively steep over the 12-month period as the spread between 2- and 30-year maturities widened by 122 bps and the spread between 2- and 10-year maturities widened by 87 bps.

During the same time period, US Treasury rates rose by 109 bps on 30-year and 111 bps on 10-year bonds, while moving up 80 bps in 5-years. Accordingly, tax-exempt municipal bonds moderately outperformed Treasuries in the short and intermediate portion of the yield curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market while evidence of a recovering domestic economy coupled with the removal of certain political and tax policy uncertainties pushed interest rates higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt investing. The municipal market continues to be an attractive avenue for investors seeking yield in today’s environment of low absolute rates as the asset class is known for its lower volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers Continue to Improve

Following an extended period of nation-wide austerity and de-leveraging as states sought to balance their budgets, 13 consecutive quarters of positive revenue growth coupled with the elimination of more than 750,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate structure and security selection remain imperative amid uncertainty in this fragile economic environment.

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

4 ANNUAL REPORT JULY 31, 2013
 
  
The Benefits and Risks of Leveraging    

The Funds may utilize leverage to seek to enhance the yield and net asset value (”NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

To obtain leverage, the Funds issue Variable Rate Demand Preferred Shares (“VRDP Shares”) (VRDP Shares are referred to as “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Funds invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Fund’s long-term investments, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Fund pays higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of tender option bond trusts (“TOBs”), as described in Note 3 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds are permitted to issue senior securities in the form of equity securities (e.g. Preferred Shares) up to 50% of their total managed assets (each Fund’s total assets less the sum of its accrued liabilities). In addition, each Fund with VRDP Shares limits its economic leverage to 45% of its total managed assets. As of July 31, 2013, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
   
 Percent of
Economic
Leverage
MNE
            36 %  
MZA
            40 %  
MYC
            41 %  
MYF
           43 %  
MYJ
           40 %  

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including financial futures contracts and options, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 5
 
  
Fund Summary as of July 31, 2013  BlackRock Muni New York Intermediate Duration Fund, Inc.

Fund Overview

BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide shareholders with high current income exempt from federal income tax and New York State and New York City personal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.
 

Performance

•
   For the 12-month period ended July 31, 2013, the Fund returned (13.18)% based on market price and (4.38)% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of (9.02)% based on market price and (2.67)% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
•
   The Fund’s long duration posture (sensitivity to interest rate movements) was detrimental to performance as rates increased over the period. (Bond prices fall when yields rise.) The Fund’s holdings were more concentrated on the long end of the yield curve (within the Fund’s intermediate duration mandate), which hurt returns as the yield curve steepened (rates on longer-dated bonds rose more than rates on shorter-dated bonds). The Fund’s exposure to Puerto Rico credits hurt performance as the credit quality of the island’s municipal issuers has deteriorated and the bonds have underperformed. The Fund’s fully invested posture contributed to its longer duration and consequently negatively impacted performance. Additionally, leverage on the Fund’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the Fund’s holdings.
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
 

Fund Information

Symbol on New York Stock Exchange (“NYSE”)
      
MNE
Initial Offering Date
      
August 1, 2003
Yield on Closing Market Price as of July 31, 2013 ($13.06)1
      
5.74%
Tax Equivalent Yield2
      
11.64%
Current Monthly Distribution per Common Share3
      
$0.0625
Current Annualized Distribution per Common Share3
      
$0.7500
Economic Leverage as of July 31, 20134
      
36%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.67%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.
6 ANNUAL REPORT JULY 31, 2013
 
  
          BlackRock Muni New York Intermediate Duration Fund, Inc.

Market Price and Net Asset Value Per Share Summary
   
 7/31/13
    
 7/31/12
    
 Change
    
 High
    
 Low
Market Price
        $ 13.06         $ 15.80            (17.34 )%        $ 16.53         $ 12.93   
Net Asset Value
         $ 14.54         $ 15.97            (8.95 )%        $ 16.36         $ 14.32   
                                             
Market Price and Net Asset Value History For the Past Five Years

Overview of the Fund’s Long-Term Investments

Sector Allocation
   
 7/31/13
    
 7/31/12
Transportation
           20 %           17 %  
County/City/Special District/School District
           17             17    
State
           13             14    
Health
           13             14    
Education
           12             10    
Utilities
           12             13    
Corporate
           7             7    
Housing
           6             7    
Tobacco
           —             1    

Credit Quality Allocation1
   
 7/31/13
    
 7/31/12
AAA/Aaa
           6 %           6 %  
AA/Aa
           47             48    
A
           32             29    
BBB/Baa
           8             9    
BB/Ba
           3             2    
B
           —             1    
Not Rated2
           4             5    
1   Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2013 and July 31, 2012, the market value of these securities was $530,726, representing 1%, and $1,922,828, representing 2%, respectively, of the Fund’s long-term investments.
Call/Maturity Schedule3
Calendar Year Ended December 31,
                 
2013
           4 %
2014
           1    
2015
           8    
2016
           10    
2017
           5    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT JULY 31, 2013 7
 
  
Fund Summary as of July 31, 2013 BlackRock MuniYield Arizona Fund, Inc.

Fund Overview

BlackRock MuniYield Arizona Fund, Inc.’s (MZA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and Arizona income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Arizona income taxes. Under normal market conditions, the Fund expects to invest at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.
 

Performance

•
   For the 12-month period ended July 31, 2013, the Fund returned (9.69)% based on market price and (5.08)% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (14.04)% based on market price and (6.25)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
•
   The Fund’s duration exposure (sensitivity to interest rate movements) detracted from performance as tax-exempt municipal rates increased significantly during the period. (Bond prices fall when yields rise.) Exposure to the long end of the yield curve hurt returns as rates increased more in the long end than in the short end of the curve. The Fund’s credit exposure had a net negative impact on results as spreads generally widened during the period. Specifically, spreads widened on the Fund’s holdings of Puerto Rico Sales Tax Revenue Bonds. (Interest rates on lower quality bonds increased more than on higher quality municipal bonds.) Leverage on the Fund’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the Fund’s holdings.
•
   Contributing positively to performance was the Fund’s income generated from coupon payments on its fully invested portfolio of tax-exempt municipal bonds. The Fund’s short position in US Treasury futures as a strategy for hedging interest rate risk enhanced results.
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
 

Fund Information

Symbol on NYSE MKT
     
MZA
Initial Offering Date
      
October 29, 1993
Yield on Closing Market Price as of July 31, 2013 ($13.33)1
      
6.26%
Tax Equivalent Yield2
      
11.59%
Current Monthly Distribution per Common Share3
      
$0.0695
Current Annualized Distribution per Common Share3
      
$0.8340
Economic Leverage as of July 31, 20134
      
40%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal and state tax rate of 45.97%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.
8 ANNUAL REPORT JULY 31, 2013
 
  
          BlackRock MuniYield Arizona Fund, Inc.

Market Price and Net Asset Value Per Share Summary
   
 7/31/13
    
 7/31/12
    
 Change
    
 High
    
 Low
Market Price
        $ 13.33         $ 15.61            (14.61 )%        $ 16.79         $ 12.86   
Net Asset Value
         $ 13.57         $ 15.12            (10.25 )%        $ 15.62         $ 13.45   
                                             
Market Price and Net Asset Value History For the Past Five Years
      


    

Overview of the Fund’s Long-Term Investments

Sector Allocation
   
 7/31/13
    
 7/31/12
County/City/Special District/School District
           29 %           27 %  
Utilities
           20             19    
State
           17             21    
Education
           12             9    
Health
           11             12    
Corporate
           8             6    
Transportation
           2             4    
Housing
           1             2    

Credit Quality Allocation1
   
 7/31/13
    
 7/31/12
AAA/Aaa
           13 %           14 %  
AA/Aa
           41             42    
A
           34             30    
BBB/Baa
           8             11    
B
           1            — 2  
Not Rated3
           3             3    
1   Using the higher of S&P’s or Moody’s ratings.
2   Includes a less than 1% investment.
3   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2013 and July 31, 2012, the market value of these securities was $1,120,100 and $1,172,270, each representing 1%, respectively, of the Fund’s long-term investments.
Call/Maturity Schedule4
Calendar Year Ended December 31,
                 
 
2013
           3 %
2014
           5    
2015
           7    
2016
           6    
2017
           3    
4   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT JULY 31, 2013 9
 
  
Fund Summary as of July 31, 2013 BlackRock MuniYield California Fund, Inc.

Fund Overview

BlackRock MuniYield California Fund, Inc.’s (MYC) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

Effective July 1, 2013, the Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at time of purchase.

No assurance can be given that the Fund’s investment objective will be achieved.


 

Performance

•
   For the 12-month period ended July 31, 2013, the Fund returned (14.68)% based on market price and (6.61)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (12.17)% based on market price and (4.63)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
•
   The Fund posted a negative return as bond prices broadly declined in the rising interest rate environment. The Fund’s exposure to bonds with longer maturities, which tend to have higher durations (greater sensitivity to interest rate movements), particularly hurt performance during the period. Additionally, leverage on the Fund’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the Fund’s holdings. As rates rose rather significantly in the latter part of the period, pushing bond prices down indiscriminately, California school districts and the education and utilities sectors were especially exposed to price depreciation. To a degree, this represented an unwinding of the positive performance in these segments when rates fell in prior periods.
•
   While the Fund’s cash reserves were generally maintained at a minimal level, to the extent reserves were held, the cash holdings provided liquidity to the Fund and held their value as interest rates rose during the period. Additionally, the Fund’s use of derivatives to hedge against interest rate risk helped performance. Specifically, short positions in US Treasury financial futures enhanced results as rates increased during the period.
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
 

Fund Information

Symbol on NYSE
      
MYC
Initial Offering Date
      
February 28, 1992
Yield on Closing Market Price as of July 31, 2013 ($13.94)1
      
6.80%
Tax Equivalent Yield2
      
13.86%
Current Monthly Distribution per Common Share3
       $0.079
Current Annualized Distribution per Common Share3       $0.948
Economic Leverage as of July 31, 20134
      
41%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.93%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.
10 ANNUAL REPORT JULY 31, 2013
 
  
          BlackRock MuniYield California Fund, Inc.

Market Price and Net Asset Value Per Share Summary
   
 7/31/13
    
 7/31/12
    
 Change
    
 High
    
 Low
Market Price
        $ 13.94         $ 17.31            (19.47 )%        $ 17.90         $ 13.84   
Net Asset Value
         $ 14.96         $ 16.97            (11.84 )%        $ 17.67         $ 14.79   
                                             
Market Price and Net Asset Value History For the Past Five Years
      
       

    

Overview of the Fund’s Long-Term Investments

             
Credit Quality Allocation1
   
 7/31/13
    
 7/31/12
AAA/Aaa
           10 %           7 %  
AA/Aa
           67             69    
A
           22             23    
BBB/Baa
           1             1    
1   Using the higher of S&P’s or Moody’s ratings.
Sector Allocation
   
 7/31/13
    
 7/31/12
County/City/Special District/School District
           41 %           41 %  
Utilities
           22             18    
Health
           11             14    
Education
           10             12    
State
           8             8    
Transportation
           6             6    
Corporate
           1             — 2  
Housing
           1             1    
2   Includes a less than 1% investment.
Call/Maturity Schedule3
Calendar Year Ended December 31,
                 
 
2013
           1 %
2014
           —    
2015
           5    
2016
           11    
2017
           7    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT JULY 31, 2013 11
 
  
Fund Summary as of July 31, 2013 BlackRock MuniYield Investment Fund

Fund Overview

BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund primarily invests in municipal bonds that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

Effective July 1, 2013, the Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at time of purchase.

No assurance can be given that the Fund’s investment objective will be achieved.
 

Performance

•
   For the 12-month period ended July 31, 2013, the Fund returned (12.94)% based on market price and (7.14)% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of (14.54)% based on market price and (5.78)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
•
   The Fund’s longer duration holdings (those with greater sensitivity to interest rate movements) hindered results as the yield curve began to steepen in 2013 (rates on longer-dated bonds rose more than rates on shorter-dated securities). This especially impacted the Fund’s holdings in the water and sewer, utilities, transportation and education sectors. Leverage on the Fund’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the Fund’s holdings. The Fund’s holdings of Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across Puerto Rico securities.
•
   Contributing positively to the Fund’s performance was its use of derivatives to hedge against interest rate risk. Specifically, short positions in US Treasury financial futures enhanced results as interest rates increased during the period. Additionally, the Fund’s holdings in pre-refunded bonds with terms of up to five years added to returns as investors seeking protection amid interest rate volatility moved down the yield curve.
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
 

Fund Information

Symbol on NYSE
      
MYF
Initial Offering Date
      
February 28, 1992
Yield on Closing Market Price as of July 31, 2013 ($13.55)1
      
7.00%
Tax Equivalent Yield2
      
12.37%
Current Monthly Distribution per Common Share3
      
$0.079
Current Annualized Distribution per Common Share3
      
$0.948
Economic Leverage as of July 31, 20134
      
43%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.
12 ANNUAL REPORT JULY 31, 2013
 
  
          BlackRock MuniYield Investment Fund

Market Price and Net Asset Value Per Share Summary
   
 7/31/13
    
 7/31/12
    
 Change
    
 High
    
 Low
Market Price
        $ 13.55         $ 16.52            (17.98 )%        $ 18.13         $ 13.42   
Net Asset Value
         $ 14.26         $ 16.30            (12.52 )%        $ 17.12         $ 14.12   
                                             
Market Price and Net Asset Value History For the Past Five Years
      

    

Overview of the Fund’s Long-Term Investments

Sector Allocation
   
 7/31/13
    
 7/31/12
County/City/Special Disctrict/School District
           21 %           20 %  
Transportation
           21             20    
Utilities
           20             16    
Health
           14             17    
Education
           9             9    
State
           7             11    
Corporate
           4             3    
Housing
           3             3    
Tobacco
           1             1    
Credit Quality Allocation1
   
 7/31/13
    
 7/31/12
AAA/Aaa
           9 %           14 %  
AA/Aa
           60             60    
A
            25             19    
BBB/Baa
           5             6    
Not Rated
           1             1    
1   Using the higher of S&P’s or Moody’s ratings.
Call/Maturity Schedule2
Calendar Year Ended December 31,
                 
 
2013
           2 %
2014
           —    
2015
           —    
2016
           1    
2017
           2    
2   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

ANNUAL REPORT JULY 31, 2013 13
 
  
Fund Summary as of July 31, 2013 BlackRock MuniYield New Jersey Fund, Inc.

Fund Overview

BlackRock MuniYield New Jersey Fund, Inc.’s (MYJ) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes and New Jersey personal income tax as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may subject to the federal alternative minimum tax) and New Jersey personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

Effective July 1, 2013, the Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at time of purchase.

No assurance can be given that the Fund’s investment objective will be achieved.
 

Performance

•
   For the 12-month period ended July 31, 2013, the Fund returned (14.66)% based on market price and (6.51)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (16.01)% based on market price and (5.78)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
•
   The Fund’s longer duration holdings (those with greater sensitivity to interest rate movements) hindered results as the yield curve began to steepen in 2013 (rates on longer-dated bonds rose more than rates on shorter-dated securities). This especially impacted the Fund’s holdings in the water and sewer, utilities, transportation and education sectors. Leverage on the Fund’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the Fund’s holdings. The Fund’s holdings of Puerto Rico Sales Tax Revenue Bonds had a negative impact on performance as the continued decline of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across Puerto Rico securities.
•
   Contributing positively to the Fund’s performance was its use of derivatives to hedge against interest rate risk. Specifically, short positions in US Treasury financial futures enhanced results as interest rates increased during the period. Additionally, the Fund’s holdings in pre-refunded bonds with terms of up to six years added to returns as investors seeking protection amid interest rate volatility moved down the yield curve.
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
 

Fund Information

Symbol on NYSE
      
MYJ
Initial Offering Date
      
May 1,1992
Yield on Closing Market Price as of July 31, 2013 ($13.74)1
      
6.46%
Tax Equivalent Yield2
      
12.54%
Current Monthly Distribution per Common Share3
      
$0.074
Current Annualized Distribution per Common Share3
      
$0.888
Economic Leverage as of July 31, 20134
      
40%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal and state tax rate of 48.48%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.
14 ANNUAL REPORT JULY 31, 2013
 
  
          BlackRock MuniYield New Jersey Fund, Inc.

Market Price and Net Asset Value Per Share Summary
   
 7/31/13
    
 7/31/12
    
 Change
    
 High
    
 Low
Market Price
        $ 13.74         $ 17.07            (19.51 )%        $ 18.23         $ 13.54   
Net Asset Value
         $ 14.92         $ 16.92            (11.82 )%        $ 17.57         $ 14.75   
                                             
Market Price and Net Asset Value History For the Past Five Years
      
       

    

Overview of the Fund’s Long-Term Investments

Sector Allocation
   
 7/31/13
    
 7/31/12
State
           27 %           35 %  
Transportation
           26             16    
Education
           14             14    
County/City/Special District/School District
           14             10    
Health
           9             9    
Housing
           5             6    
Corporate
           4             3    
Utilities
           1             7    
Credit Quality Allocation1
   
 7/31/13
    
 7/31/12
AAA/Aaa
           4 %           5 %  
AA/Aa
           36             39    
A
           52             48    
BBB/Baa
           7             7    
Not Rated2
           1             1    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of July 31, 2013 and July 31, 2012, the market value of these securities was $3,519,770 and $3,600,470, each representing 1%, respectively, of the Fund’s long-term investments.
Call/Maturity Schedule3
Calendar Year Ended December 31,
                 
 
2013
           1 %
2014
           5    
2015
           5    
2016
           2    
2017
           9    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT JULY 31, 2013 15
 
  
Schedule of Investments July 31, 2013 BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
   
Municipal Bonds

          Par
(000)
      Value
New York — 128.6%
Corporate — 11.5%
                                         
Essex County Industrial Development Agency, Refunding RB, Series A, AMT, 5.20%, 12/01/23
         $  1,000         $   1,029,780     
Jefferson County Industrial Development Agency, Refunding RB, Solid Waste, Series A, AMT, 5.20%, 12/01/20
            500             498,700   
New York City Industrial Development Agency, RB, British Airways PLC Project, AMT, 7.63%, 12/01/32
            1,000            1,007,180   
New York City Industrial Development Agency, Refunding RB, Terminal One Group Association Project, AMT (a):
                                         
5.50%, 1/01/18
            1,000            1,092,320   
5.50%, 1/01/21
            250             270,600   
5.50%, 1/01/24
            1,000            1,077,480   
New York State Energy Research & Development Authority, Refunding RB (NPFGC):
                                         
Brooklyn Union Gas/Keyspan, Series A, AMT, 4.70%, 2/01/24
            500             509,290   
Rochester Gas & Electric Corp., Series C, 5.00%, 8/01/32 (a)
            1,000            1,088,020   
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series B, 4.00%, 11/01/24
            500             458,960   
 
                          7,032,330   
County/City/Special District/School District — 18.8%
                                         
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.00%, 10/01/24
            1,000            1,014,440   
City of New York, New York, GO:
                                         
Sub-Series A-1, 5.00%, 8/01/33 (b)
            700             729,085   
Sub-Series G-1, 5.00%, 4/01/29
            750             799,342   
Sub-Series I-1, 5.13%, 4/01/25
            750             839,160   
City of New York, New York, GO, Refunding:
                                         
Series E, 5.00%, 8/01/27
            600             647,118   
Series E, 5.00%, 8/01/30
            500             531,070   
Series J, 5.00%, 8/01/23
            2,000            2,317,780   
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47
            1,000            1,061,710   
New York City Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/31
            1,500            1,383,375   
New York City Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22
            500             503,555   
New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35
            120             120,094   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.00%, 11/15/31
            1,000            1,023,780   
United Nations Development Corp., Refunding RB, Series A, 4.25%, 7/01/24
            500             518,250   
 
                          11,488,759   
                     
Municipal Bonds

          Par
(000)
      Value
New York (continued)
Education — 18.6%
Build NYC Resource Corp., RB:
                                         
3.88%, 4/15/23
         $    505          $     468,140     
5.00%, 4/01/33
            750             723,555   
Madison County Capital Resource Corp., Refunding RB, Colgate University Project, Series A, 5.00%, 7/01/33
            650             672,061   
Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 3/01/21
            1,000            1,088,670   
New York State Dormitory Authority, RB:
                                         
Convent of the Sacred Heart (AGM), 4.00%, 11/01/18
            880             972,426   
Convent of the Sacred Heart (AGM), 5.00%, 11/01/21
            120             133,321   
Fordham University, Series A, 5.25%, 7/01/25
            500             552,580   
Mount Sinai School of Medicine, 5.50%, 7/01/25
            1,000            1,085,170   
Mount Sinai School of Medicine, Series A (NPFGC), 5.15%, 7/01/24
            570             613,058   
New York State Dormitory Authority, Refunding RB:
                                         
Pace University, Series A, 5.00%, 5/01/24
            850             908,591   
Teachers College, Series A, 5.00%, 7/01/31
            375             388,631   
The Culinary Institute of America, 5.00%, 7/01/28
            500             506,080   
Third General Resolution, State University Educational Facilities Issue, Series E, 5.00%, 5/15/27
            570             615,041   
Schenectady County Capital Resource Corp., Refunding RB, Union College, 5.00%, 7/01/32
            940             981,896   
Schenectady County Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/26
            1,000            1,063,690   
Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.25%, 3/01/21
            600             616,194   
 
                          11,389,104   
Health — 20.0%
                                         
Dutchess County Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 4/01/21
            215             242,210   
Dutchess County Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.25%, 7/01/25
            1,000            1,081,140   
Erie County Industrial Development Agency, RB, Episcopal Church Home, Series A, 5.88%, 2/01/18
            530             530,726   
Genesee County Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 4.75%, 12/01/14
            150             150,158   
New York City Industrial Development Agency, RB, PSCH, Inc. Project, 6.20%, 7/01/20
            1,415            1,371,616   

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 AGC    Assured Guaranty Corp.    GO    General Obligation Bonds
AGM   Assured Guaranty Municipal Corp.    HFA    Housing Finance Agency
AMBAC   American Municipal Bond Assurance Corp.    HRB    Housing Revenue Bonds
AMT   Alternative Minimum Tax (subject to)    IDA    Industrial Development Authority
ARB   Airport Revenue Bonds    IDB    Industrial Development Board
BARB   Building Aid Revenue Bonds    IDRB    Industrial Development Revenue Bonds
BHAC   Berkshire Hathaway Assurance Corp.    ISD    Independent School District
CAB   Capital Appreciation Bonds    LRB    Lease Revenue Bonds
CIFG   CDC IXIS Financial Guaranty    M/F    Multi-Family
COP   Certificates of Participation    NPFGC    National Public Finance Guarantee Corp.
EDA   Economic Development Authority    PILOT    Payment in Lieu of Taxes
ERB   Education Revenue Bonds    RB    Revenue Bonds
Fanie Mae   Federal National Mortgage Association    S/F    Single-Family
GARB   General Airport Revenue Bonds    SONYMA    State of New York Mortgage Agency
Ginnie Mae   Government National Mortgage Association    Syncora    Syncora Guarantee

See Notes to Financial Statements.

16 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
             
Municipal Bonds

          Par
(000)
      Value
New York (continued)
Health (concluded)
                                         
New York State Dormitory Authority, RB:
                                         
New York State Association for Retarded Children, Inc., Series A, 5.30%, 7/01/23
         $    450          $     487,809     
New York University Hospitals Center, Series A, 5.00%, 7/01/22
            1,000            1,098,190   
New York University Hospitals Center, Series B, 5.25%, 7/01/24
            380             402,561   
North Shore-Long Island Jewish Obligated Group, Series A, 5.25%, 5/01/25
            780             787,160   
New York State Dormitory Authority, Refunding RB:
                                         
Mount Sinai Hospital Health System, Series A, 4.25%, 7/01/23
            250             258,240   
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32
            500             505,080   
North Shore-Long Island Jewish Obligated Group, Series E, 5.00%, 5/01/22
            650             704,470   
Suffolk County Industrial Development Agency, Refunding RB, Jefferson’s Ferry Project, 4.63%, 11/01/16
            800             865,552   
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien:
                                         
Remarketing, Series A, 5.00%, 11/01/24
            910             970,051   
Remarketing, Series A, 5.00%, 11/01/30
            250             254,890   
Series B, 6.00%, 11/01/30
            240             262,195   
Westchester County IDA, RB, Special Needs Facilities Pooled Program, Series D-1, 6.80%, 7/01/19
            515             515,809   
Westchester County Local Development Corp., Refunding RB, Kendal On Hudson Project:
                                         
3.00%, 1/01/18
            500             511,230   
4.00%, 1/01/23
            480             473,126   
Yonkers Industrial Development Agency, RB, Sacred Heart Association Project, Series A, AMT (SONYMA), 4.80%, 10/01/26
            750             753,338   
 
                          12,225,551   
Housing — 6.8%
                                         
New York City Housing Development Corp., RB, Series H-2-A, AMT, 5.00%, 11/01/30
            780             785,709   
New York Mortgage Agency, Refunding RB, AMT:
                                         
Homeowner Mortgage, Series 130, 4.75%, 10/01/30
            2,500            2,507,400   
Series 133, 4.95%, 10/01/21
            395             402,379   
Series 143, 4.85%, 10/01/27
            500             506,025   
 
                          4,201,513   
State — 19.3%
                                         
Buffalo & Erie County Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing, 6.00%, 10/01/31
            1,000            1,103,780   
City of New York New York, GO:
                                         
Refunding, Series H, 5.00%, 8/01/25
            1,000            1,122,510   
Sub-Series F-1, 5.00%, 3/01/29
            250             267,880   
Long Beach City School District, GO, 4.00%, 5/01/24
            500             521,935   
Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/25
            750             851,602   
New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 1/15/23
            575             649,733   
New York State Dormitory Authority, RB:
                                         
Haverstraw King’s Daughters Public Library, 5.00%, 7/01/26
            1,015            1,095,063   
Municipal Health Facilities Improvement Program, 5.00%, 1/15/27
            600             637,506   
Series D, 5.00%, 3/15/31
            500             519,640   
Series F, 5.00%, 3/15/30
            1,290            1,339,665   
New York State Dormitory Authority, Refunding RB, Department of Health of the State of New York, Series A (CIFG), 5.00%, 7/01/25
            1,500            1,600,590   
                     
Municipal Bonds

          Par
(000)
      Value
New York (concluded)
State (concluded)
                                         
New York State Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32
         $    250          $     263,258     
New York State Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/22
            1,000            1,147,510   
New York State Urban Development Corp., RB, State Personal Income Tax, Series A, 3.50%, 3/15/28
            750             700,065   
 
                          11,820,737   
Transportation — 20.9%
                                         
Metropolitan Transportation Authority, RB:
                                         
Series A (NPFGC), 5.00%, 11/15/16 (c)
            990             1,125,996   
Series A (NPFGC), 5.00%, 11/15/24
            1,010            1,125,332   
Series B (NPFGC), 5.25%, 11/15/19
            860             1,008,230   
Sub-Series B-1, 5.00%, 11/15/24
            460             511,745   
Sub-Series B-4, 5.00%, 11/15/24
            300             333,747   
Transportation, Series A, 5.00%, 11/15/27
            1,000            1,059,220   
Metropolitan Transportation Authority, Refunding RB:
                                         
Series D, 4.00%, 11/15/32
            250             232,235   
Series F, 5.00%, 11/15/30
            500             520,320   
Port Authority of New York & New Jersey, RB, LLC Project, JFK International Air Terminal Special Project, 5.00%, 12/01/20
            1,000            1,085,450   
Port Authority of New York & New Jersey, Refunding RB, Consolidated, AMT:
                                         
138th, 4.75%, 12/01/30
            205             205,613   
152nd, 5.00%, 11/01/23
            500             537,315   
152nd, 5.00%, 11/01/24
            1,000            1,067,210   
Triborough Bridge & Tunnel Authority, Refunding RB, Series A:
                                         
5.00%, 11/15/22
            1,025            1,178,330   
5.00%, 11/15/24
            2,000            2,257,580   
5.00%, 1/01/27
            500             545,495   
 
                          12,793,818   
Utilities — 12.7%
                                         
Long Island Power Authority, Refunding RB:
                                         
Series A, 5.50%, 4/01/24
            500             563,535   
Series D (NPFGC), 5.00%, 9/01/25
            2,000            2,133,380   
New York City Municipal Water Finance Authority, Refunding RB:
                                         
Series DD, 5.00%, 6/15/32
            500             519,445   
Series EE, 5.00%, 6/15/34
            3,000            3,135,360   
New York State Environmental Facilities Corp., Refunding RB, NYC Municipal Water, 5.00%, 6/15/31
            1,000            1,068,310   
Suffolk County Water Authority, Refunding RB, 3.00%, 6/01/25
            400             377,776   
 
                          7,797,806   
Total Municipal Bonds in New York
                          78,749,618   
 
Puerto Rico — 9.1%
Housing — 2.6%
                                         
Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27
            1,570            1,617,603   
State — 0.8%
                                         
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series M-3 (NPFGC), 6.00%, 7/01/28
            500             486,065   
Transportation — 5.7%
                                         
Puerto Rico Highway & Transportation Authority, RB, Series Y (AGM), 6.25%, 7/01/21
            3,000            3,454,200   
Total Municipal Bonds in Puerto Rico
                          5,557,868   
Total Municipal Bonds — 137.7%
                          84,307,486   

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 17
 
  
Schedule of Investments (continued)   BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
             
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)		          Par
(000)
      Value
New York — 17.3%
County/City/Special District/School District — 7.1%
                                         
City of New York, New York, GO:
                                         
Sub-Series B-1, 5.25%, 9/01/22
         $    750          $ 859,358     
Sub-Series I-1, 5.50%, 4/01/21
            1,499            1,753,638   
New York State Urban Development Corp., Refunding RB, Service Contracts, Series B, 5.00%, 1/01/21
            1,499            1,697,453   
 
                          4,310,449   
Transportation — 5.0%
                                         
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT:
                                         
5.00%, 10/15/21
            2,000            2,260,040   
5.00%, 10/15/26
            750             805,778   
 
                          3,065,818   
Utilities — 5.2%
                                         
New York City Municipal Water Finance Authority, Refunding RB:
                                         
Second General Resolution, Series HH, 5.00%, 6/15/32
            1,560            1,640,714   
Series A, 4.75%, 6/15/30
            1,500            1,549,320     
 
                          3,190,034   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 17.3%
                          10,566,301   
Total Long-Term Investments
(Cost — $92,917,319) — 155.0%
                          94,873,787   
                     
Short-Term Securities              
Shares		      Value
BIF New York Municipal Money Fund, 0.00% (e)(f)
            802,542         $ 802,542   
Total Short-Term Securities
(Cost — $802,542) — 1.3%
                          802,542   
Total Investments (Cost — $93,719,861) — 156.3%
                          95,676,329   
Other Assets Less Liabilities — 1.1%
                          677,815   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (9.0%)
                          (5,539,696 )  
VRDP Shares, at Liquidation Value — (48.4%)
                          (29,600,000 )  
Net Assets Applicable to Common Shares — 100.0%
                       $  61,214,448   

Notes to Schedule of Investments

(a)      
Variable rate security. Rate shown is as of report date.
(b)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty
   
 Value
    
 Unrealized
Appreciation
JPMorgan Chase & Co.
        $ 729,085         $ 8,624   

(c)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(d)      
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)      
Investments in issuers considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate
   
 Shares
Held at
July 31, 2012
    
 Net
Activity
    
 Shares
Held at
July 31, 2013
    
 Income
BIF New York Municipal Money Fund
            480,082            322,460          802,542         $ 37    

(f)      
Represents the current yield as of report date.
•      
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•      
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•      
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•      
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•      
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

18 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (concluded)   BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Assets:
                                                                                 
Investments:
                                                                                 
Long-Term Investments 1
            —          $ 94,873,787            —          $ 94,873,787   
Short-Term Securities
         $ 802,542            —             —             802,542   
Total
         $     802,542           $  94,873,787            —          $  95,676,329     
1 See above Schedule of Investments for values in each sector or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Liabilities:
                                                                                 
TOB trust certificates
            —          $ (5,537,752 )           —          $ (5,537,752 )  
VRDP Shares
            —             (29,600,000 )           —             (29,600,000 )  
Total
            —          $  (35,137,752 )           —          $  (35,137,752 )  

There were no transfers between levels during the year ended July 31, 2013.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 19
 
  
Schedule of Investments July 31, 2013 BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)
      Value
Arizona — 145.4%
Corporate — 13.2%
                                         
Maricopa County Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35
         $  4,350         $   4,427,778     
Pima County IDA, RB, Tucson Electric Power Co. Project, Series A, 5.25%, 10/01/40
            1,000            962,150   
Pima County IDA, Refunding IDRB, Tucson Electric Power Co. Project, Series B, 5.75%, 9/01/29
            500             511,960   
Pinal County IDA Arizona, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29
            1,000            886,280   
Salt Verde Financial Corp., RB, Natural Gas Utility Improvements, Senior, 5.00%, 12/01/37
            1,500            1,434,795   
 
                          8,222,963   
County/City/Special District/School District — 47.2%
                                         
City of Glendale Arizona, RB (NPFGC), 5.00%, 7/01/25
            1,000            1,076,320   
City of Tucson Arizona, COP (AGC), 5.00%, 7/01/29
            1,000            1,035,660   
County of Pinal Arizona, COP:
                                         
5.00%, 12/01/26
            1,250            1,321,937   
5.00%, 12/01/29
            1,250            1,298,137   
Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 7/01/27
            2,000            2,146,800   
Gladden Farms Community Facilities District, GO, 5.50%, 7/15/31
            750             713,843   
Glendale Municipal Property Corp., Refunding RB, Sub-Series C, 5.00%, 7/01/38
            2,000            2,016,360   
Greater Arizona Development Authority, RB, Santa Cruz County Jail, Series 2, 5.25%, 8/01/31
            1,155            1,183,020   
Marana Municipal Property Corp., RB, Series A, 5.00%, 7/01/28
            2,500            2,634,650   
Maricopa County Community College District, GO, Series C, 3.00%, 7/01/22
            1,000            1,010,290   
Maricopa County Public Finance Corp., RB, Series A (AMBAC), 5.00%, 7/01/24
            1,000            1,097,490   
Maricopa County Unified School District No. 89-Dysart, GO, School Improvement Project of 2006, Series C, 6.00%, 7/01/28
            1,000            1,135,180   
Mohave County Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 7/01/26
            1,000            1,118,310   
Phoenix Civic Improvement Corp., RB, Subordinate, Civic Plaza Expansion Project, Series A (NPFGC), 5.00%, 7/01/35
            3,325            3,342,523   
Phoenix Mesa Airport Authority, RB, Mesa Project, AMT, 5.00%, 7/01/38
            3,600            3,375,792   
Scottsdale Municipal Property Corp., RB, Water & Sewer Development Project, Series A, 5.00%, 7/01/24
            1,500            1,688,880   
Vistancia Community Facilities District, GO:
                                         
6.75%, 7/15/22
            1,275            1,277,894   
5.75%, 7/15/24
            750             770,303   
Yuma County Library District, GO (Syncora), 5.00%, 7/01/26
            1,000            1,058,610   
 
                          29,301,999   
Education — 19.4%
                                         
Arizona Board of Regents, Refunding, COP, University of Arizona, Series C, 5.00%, 6/01/31
            2,000            2,055,940   
Arizona State University, RB, Series 2008-C:
                                         
6.00%, 7/01/25
            970             1,133,183   
6.00%, 7/01/26
            745             867,694   
6.00%, 7/01/27
            425             484,955   
6.00%, 7/01/28
            400             455,248   
Florence Town, Inc., IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43
            500             444,465   
Maricopa County IDA, RB, Arizona Charter School Project, Series A, 6.63%, 7/01/20
            550             497,106   
                     
Municipal Bonds          Par
(000)
      Value
Arizona (continued)
Education (concluded)
                                         
Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/38
         $  3,000         $   3,025,860     
Phoenix IDA, ERB, Great Hearts Academies Project, 6.30%, 7/01/42
            500             492,510   
Pima County IDA, RB, Arizona Charter Schools Project, Series C:
                                         
6.70%, 7/01/21
            20             20,046   
6.75%, 7/01/31
            45             44,286   
Pima County IDA, Refunding RB, Arizona Charter Schools Project, Series O, 5.00%, 7/01/26
            985             985,226   
Sun Devil Energy Center LLC, Refunding RB, Arizona State University, 5.00%, 7/01/30
            1,500            1,567,965   
 
                          12,074,484   
Health — 19.3%
                                         
Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 3/01/41
            500             491,165   
Arizona Health Facilities Authority, Refunding RB:
                                         
Banner Health, Series D, 5.50%, 1/01/38
            2,300            2,393,909   
Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42
            1,000            919,050   
Maricopa County IDA, Refunding RB, Series A:
                                         
Catholic Healthcare West, 6.00%, 7/01/39
            170             180,033   
Catholic Helathcare West, 5.50%, 7/01/26
            1,850            1,919,690   
Samaritan Health Services (NPFGC), 7.00%, 12/01/16 (a)
            1,000            1,120,100   
Tempe Arizona IDA, Refunding RB, Friendship Village of Tempe, Series A, 6.25%, 12/01/42
            500             502,040   
University Medical Center Corp., RB, 6.50%, 7/01/39
            500             538,245   
University Medical Center Corp., Refunding RB, 6.00%, 7/01/39
            1,000            1,055,970   
Yavapai County IDA, RB, Yavapai Regional Medical Center, Series A, 6.00%, 8/01/33
            1,800            1,805,130   
Yavapai County IDA, Refunding RB, Northern Arizona Healthcare System, 5.25%, 10/01/26
            1,000            1,087,030   
 
                          12,012,362   
Housing — 1.0%
                                         
Maricopa County & Phoenix IDA, Refunding RB, S/F, AMT (Fannie Mae):
                                   
Series A-1, 5.75%, 5/01/40
            75             80,530   
Series A-2, 5.80%, 7/01/40
            90             92,724   
Maricopa County IDA, RB, Series 3-B, AMT (Ginnie Mae), 5.25%, 8/01/38
            186             194,967   
Phoenix & Pima County IDA, RB, Series 1A, AMT (Fannie Mae), 5.65%, 7/01/39
            48             50,950   
Phoenix & Pima County IDA, Refunding RB, AMT (Fannie Mae), 5.25%, 8/01/38
            74             74,311   
Phoenix IDA, Refunding RB, Series 2007-2, AMT (Fannie Mae), 5.50%, 12/01/38
            100             106,039   
 
                          599,521   
State — 20.4%
                                         
Arizona Department of Transportation State Highway Fund Revenue, RB, Series B, 5.00%, 7/01/30
            4,000            4,289,040   
Arizona School Facilities Board, COP:
                                         
5.13%, 9/01/21
            1,000            1,107,580   
5.75%, 9/01/22
            2,000            2,256,120   
Arizona Sports & Tourism Authority, Refunding RB, Multipurpose Stadium Facility Project, Series A, 5.00%, 7/01/36
            3,000            3,010,590   
State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 7/01/29
            1,930            2,014,882   
 
                          12,678,212   

See Notes to Financial Statements.

20 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)
      Value
Arizona (concluded)
Transportation — 4.4%
                                         
Phoenix Civic Improvement Corp., RB, Senior Lien AMT, Series A, 5.00%, 7/01/33
         $  1,000         $   1,034,540     
Phoenix Civic Improvement Corp., Refunding RB:
                                         
AMT, 5.00%, 7/01/32
            700             705,964   
Junior Lien, Series A, 5.00%, 7/01/40
            1,000            1,005,180   
 
                          2,745,684   
Utilities — 20.5%
                                         
Gilbert Water Resource Municipal Property Corp., RB, Subordinate Lien (NPFGC), 5.00%, 10/01/29
            900             930,285   
Greater Arizona Development Authority, RB, Series B (NPFGC):
                                         
5.00%, 8/01/30
            1,600            1,663,392   
5.00%, 8/01/35
            1,000            1,002,070   
Phoenix Civic Improvement Corp., Refunding RB, Senior Lien, 5.50%, 7/01/22
            2,000            2,344,020   
Pima County Arizona Sewer System RB, Series B, 5.00%, 7/01/26
            1,000            1,076,760   
Pinal County Electric District No. 3, Refunding RB, 5.25%, 7/01/36
            2,500            2,566,650   
Pinal County IDA Arizona, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26
            500             463,580   
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/24
            1,000            1,117,920   
Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 1/01/35
            1,500            1,558,215   
 
                          12,722,892   
Total Municipal Bonds in Arizona
                          90,358,117   
 
Guam — 1.5%
State — 1.5%
                                         
Territory of Guam, RB, Government of Guam Business Privilege Tax:
                                         
Series A, 5.13%, 1/01/42
            800             809,504   
Series B-1, 5.00%, 1/01/37
            145             144,400   
Total Municipal Bonds in Guam
                          953,904   
                     
Municipal Bonds          Par
(000)
      Value
Puerto Rico — 5.8%
State — 5.8%
                                         
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series M-3 (NPFGC), 6.00%, 7/01/28
         $    700          $ 680,491   
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39
            1,375            1,400,657   
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 6.60%, 8/01/41 (b)
            9,530            1,545,766   
Total Municipal Bonds in Puerto Rico
                          3,626,914   
Total Municipal Bonds — 152.7%
                          94,938,935   
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
                                         
Arizona — 11.2%
Utilities — 11.2%
                                         
City of Mesa Arizona, RB, 5.00%, 7/01/35
            3,000            3,117,090   
Phoenix Arizona Civic Improvement Corp., RB, 5.00%, 7/01/34
            3,000            3,139,350   
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38
            660             677,873   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 11.2%
                          6,934,313   
Total Long-Term Investments
(Cost — $100,484,674) — 163.9%
                          101,873,248   
Short-Term Securities
            Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (d)(e)
            210,260            210,260   
Total Short-Term Securities
(Cost — $210,260) — 0.3%
                          210,260   
Total Investments (Cost — $100,694,934) — 164.2%
                          102,083,508   
Other Assets Less Liabilities — 1.2%
                          713,591   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (5.4%)
                          (3,330,407 )  
VRDP Shares, at Liquidation Value — (60.0%)
                          (37,300,000 )  
Net Assets Applicable to Common Shares — 100.0%
                       $ 62,166,692   

Notes to Schedule of Investments

(a)      
Security is collateralized by municipal or US Treasury obligations.
(b)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c)      
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(d)      
Investments in issuers considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate
   
 Shares
Held at
July 31, 2012
    
 Net
Activity
    
 Shares
Held at
July 31, 2013
    
 Income
FFI Institutional Tax-Exempt Fund
           1,351,621            (1,141,362 )           210,260         $ 123    

(e)      
Represents the current yield as of report date.
•      
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 21
 
  
Schedule of Investments (concluded)   BlackRock MuniYield Arizona Fund, Inc. (MZA)
         
•      
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•      
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•      
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•      
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
       
The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:

   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Assets:
                                                                                 
Investments:
                                                                                 
Long-Term Investments 1
           —          $ 101,873,248            —          $ 101,873,248   
Short-Term Securities
        $ 210,260            —             —             210,260   
Total
         $     210,260           $ 101,873,248              —          $ 102,083,508     
1 See above Schedule of Investments for values in each sector or political subdivision.
     

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Liabilities:
                                                                                 
Bank overdraft
           —          $ (2,391 )           —          $ (2,391 )  
TOB trust certificates
           —             (3,330,000 )           —             (3,330,000 )  
VRDP Shares
           —             (37,300,000 )           —             (37,300,000 )  
Total
            —          $  (40,632,391 )           —          $  (40,632,391 )  
                                     

There were no transfers between levels during the year ended July 31, 2013.

See Notes to Financial Statements.

22 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments July 31, 2013 BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)
      Value
California — 96.0%
Corporate — 1.7%
                                         
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
                                         
Series A, 5.88%, 2/15/34
         $    975          $   1,082,386     
Series D, 5.88%, 1/01/34
            4,000            4,438,960   
 
                          5,521,346   
County/City/Special District/School District — 37.6%
                                         
Campbell Union High School District, GO, Election of 2006, Series C, 5.75%, 8/01/40
            4,000            4,341,800   
Chaffey Joint Union High School District, GO, Election of 2012, Series A:
                                         
5.00%, 8/01/33
            4,365            4,582,246   
5.00%, 8/01/37
            6,420            6,697,216   
City of Los Angeles California, COP, Senior, Sonnenblick Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31
            2,000            2,006,980   
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
                                         
6.50%, 5/01/36
            1,520            1,715,867   
6.50%, 5/01/42
            1,860            2,095,792   
El Monte Union High School District, GO, Election of 2002, Series C, 5.25%, 6/01/32
            9,620            10,176,613   
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40
            2,000            2,249,780   
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39
            7,185            7,618,112   
Los Angeles Municipal Improvement Corp., RB, Real Property, Series E:
                                         
5.75%, 9/01/34
            1,215            1,337,885   
6.00%, 9/01/34
            2,475            2,808,878   
Los Rios Community College District, GO, Election of 2002, Series D, 5.38%, 8/01/34
            4,315            4,623,177   
Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series 2013A, 5.00%, 8/01/34 (a)
            4,500            4,628,430   
Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33
            4,000            4,439,600   
Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41
            7,135            7,550,114   
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39
            6,035            6,425,706   
San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43
            2,145            2,227,111   
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
            4,100            4,422,219   
San Jose Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/39
            9,340            9,360,922   
Santa Ana Unified School District, GO, Election of 2008, Series A, 5.13%, 8/01/33
            6,105            6,318,431   
Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36
            16,000            16,944,000   
Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39
            1,250            1,371,125   
William S. Hart Union High School District, GO, CAB, Refunding, Series B (AGM) (b):
                                         
5.82%, 8/01/34
            10,850            3,252,504   
5.84%, 8/01/35
            9,525            2,684,526   
 
                          119,879,034   
                     
Municipal Bonds          Par
(000)
      Value
California (continued)
Education — 2.2%
                                         
California Educational Facilities Authority, Refunding RB:
                                         
Pitzer College, 6.00%, 4/01/40
         $  2,500         $   2,716,750     
San Francisco University, 6.13%, 10/01/36
            1,560            1,740,851   
California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42
            2,500            2,725,475   
 
                          7,183,076   
Health — 16.4%
                                         
ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:
                                         
6.38%, 8/01/34
            2,000            2,087,020   
Series A, 6.00%, 8/01/30
            2,270            2,512,708   
California Health Facilities Financing Authority, RB:
                                         
Children’s Hospital, Series A, 5.25%, 11/01/41
            11,190            11,248,524   
Sutter Health, Series B, 6.00%, 8/15/42
            7,530            8,451,823   
California Health Facilities Financing Authority, Refunding RB:
                                         
Catholic Healthcare West, Series A, 6.00%, 7/01/39
            10,000            11,328,200   
Providence Health, 6.50%, 10/01/38
            3,625            4,153,597   
California Statewide Communities Development Authority, RB:
                                         
Kaiser Permanente, Series B, 5.25%, 3/01/45
            2,000            2,000,380   
Sutter Health, Series A, 6.00%, 8/15/42
            7,995            8,973,748   
California Statewide Communities Development Authority, Refunding RB, Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41
            1,770            1,748,725   
 
                          52,504,725   
Housing — 1.1%
                                         
Santa Clara County Housing Authority, RB, John Burns Gardens Apartments Project, Series A, AMT, 6.00%, 8/01/41
            3,500            3,500,490   
State — 13.6%
                                         
California State Public Works Board, RB:
                                         
Department of Developmental Services, Poterville, Series C, 6.25%, 4/01/34
            1,465            1,676,854   
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34
            10,000            11,573,900   
Trustees of the California State University, Series D, 6.00%, 4/01/27
            215             247,044   
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
            4,400            5,119,488   
State of California, GO, Various Purpose:
                                         
5.00%, 9/01/36
            4,080            4,175,553   
6.00%, 4/01/38
            15,000            16,780,800   
6.00%, 11/01/39
            3,280            3,705,121   
 
                          43,278,760   
Transportation — 8.3%
                                         
City of San Jose California, RB, Series A-1, AMT (AGM):
                                         
5.50%, 3/01/30
            1,000            1,044,010   
5.75%, 3/01/34
            1,000            1,055,840   
City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34
            1,400            1,532,356   
County of Orange California, ARB, Series B, 5.75%, 7/01/34
            3,000            3,294,510   
County of Sacramento California, ARB:
                                         
Senior Series B, 5.75%, 7/01/39
            900             997,794   
Subordinate PFC/Grant, Sub-Series D, 6.00%, 7/01/35
            3,000            3,352,500   
San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39
            5,065            5,762,400   
San Francisco City & County Airports Commission, Refunding RB, Second Series A, AMT, 5.25%, 5/01/33
            1,440            1,478,578   

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 23
 
  
Schedule of Investments (continued)   BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)
      Value
California (concluded)
Transportation (concluded)
                                         
San Francisco Port Commission California, RB, Series A, 5.13%, 3/01/40
         $  5,050         $   5,121,558     
San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36
            2,440            2,727,651   
 
                          26,367,197   
Utilities — 15.1%
                                         
City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A:
                                         
5.00%, 6/01/32
            3,000            3,119,100   
5.00%, 6/01/35
            8,000            8,385,840   
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36
            2,645            2,962,532   
City of Sacramento California, RB, Water Revenue, 5.00%, 9/01/42
            2,000            2,039,620   
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41
            2,420            2,719,354   
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/35
            8,420            8,577,538   
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38
            3,000            3,127,920   
Los Angeles Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39
            4,000            4,228,560   
Oceanside Public Financing Authority, Refunding RB, Series A (a):
                                         
5.25%, 5/01/30
            1,245            1,334,204   
5.25%, 5/01/33
            2,810            2,972,390   
San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A:
                                         
5.25%, 5/15/34
            2,000            2,114,700   
5.38%, 5/15/34
            3,910            4,198,011   
San Francisco City & County California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39
            2,295            2,366,466   
 
                          48,146,235   
Total Municipal Bonds — 96.0%
                          306,380,863   
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
                                         
California — 72.3%
County/City/Special District/School District — 31.1%
                                         
City of Los Angeles California, Refunding RB, Series A, 5.00%, 6/01/39
            9,870            10,013,115   
El Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35
            5,000            5,124,550   
Los Angeles Community College District California, GO:
                                         
Election of 2001, Series E-1, 5.00%, 8/01/33
            14,850            15,403,905   
Election of 2003, Series E (AGM), 5.00%, 8/01/31
            10,002            10,576,102   
Election of 2008, Series C, 5.25%, 8/01/39 (d)
            9,680            10,263,559   
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
            3,828            4,432,082   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
            7,732            8,556,901   
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC):
                                         
5.00%, 7/01/30
            6,000            6,284,700   
5.00%, 7/01/34
            5,439            5,631,969   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)		          Par
(000)
      Value
California (concluded)
County/City/Special District/School District (concluded)
San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 8/01/38
         $ 15,520         $  15,837,850   
Sonoma County Junior College District, GO, Election of 2002, Series B (AGM), 5.00%, 8/01/28
            6,875            7,249,756   
 
                          99,374,489   
Education — 14.7%
                                         
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)
            13,845            14,788,398   
Peralta Community College District, GO, Election of 2000, Series D (AGM), 5.00%, 8/01/30
            1,995            2,040,386   
University of California, RB:
                                         
Series L, 5.00%, 5/15/36
            8,500            8,829,460   
Series L, 5.00%, 5/15/40
            11,597            11,820,475   
Series O, 5.75%, 5/15/34
            2,805            3,174,101   
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37
            6,160            6,367,842   
 
                          47,020,662   
Health — 3.1%
                                         
California Health Facilities FInancing Authority, RB, Sutter Health, Series A (BHAC), 5.00%, 11/15/42
            10,002            9,985,995   
Transportation — 1.6%
                                         
City of Los Angeles California Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40
            4,999            5,073,535   
Utilities — 21.8%
                                         
City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/34
            7,500            7,898,475   
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33
            4,748            4,862,551   
Los Angeles Department of Water & Power, RB, Power System:
                                         
Sub-Series A-1 (AMBAC), 5.00%, 7/01/37
            15,098            15,611,384   
Sub-Series A-2 (AGM), 5.00%, 7/01/35
            7,250            7,585,965   
Metropolitan Water District of Southern California, RB:
                                         
Series A, 5.00%, 7/01/37
            20,000            20,885,000   
Series C, 5.00%, 7/01/35
            7,145            7,426,065   
San Diego County Water Authority, COP, Series A (AGM), 5.00%, 5/01/31
            5,010            5,176,984   
 
                          69,446,424   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 72.3%
                          230,901,105   
Total Long-Term Investments
(Cost — $521,728,543) — 168.3%
                          537,281,968   
Short-Term Securities
            Shares                  
BIF California Municipal Money Fund, 0.04% (e)(f)
            4,979,601             4,979,601   
Total Short-Term Securities
(Cost — $4,979,601) — 1.6%
                          4,979,601   
Total Investments (Cost — $526,708,144) — 169.9%
                          542,261,569   
Liabilities in Excess of Other Assets — (0.1%)
                          (392,502 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (36.6%)
                          (116,824,861 )  
VRDP Shares, at Liquidation Value — (33.2%)
                          (105,900,000 )  
Net Assets Applicable to Common Shares — 100.0%
                       $ 319,144,206   

See Notes to Financial Statements.

24 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (concluded)   BlackRock MuniYield California Fund, Inc. (MYC)

Notes to Schedule of Investments

(a)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty
   
 Value
    
 Unrealized
Depreciation
Royal Bank of Canada
        $ 4,628,430         $ (54,810 )  
Stifel Nicolaus & Co.
        $ 4,306,594         $ (84,151 )  

(b)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c)      
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(d)      
All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the Liquidity Provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from 10/01/16 to 8/01/18, is $14,704,685.
(e)      
Investments in issuers considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate
   
 Shares
Held at
July 31, 2012
    
 Net
Activity
    
 Shares
Held at
July 31, 2013
    
 Income
BIF California Municipal Money Fund
            3,043,312            1,936,289            4,979,601         $ 12    

(f)      
Represents the current yield as of report date.
•      
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•      
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•      
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•      
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•      
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
       
The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:

   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Assets:
                                                                                 
Investments:
                                                                                 
Long-Term Investments 1
            —          $ 537,281,968            —          $ 537,281,968   
Short-Term Securities
         $ 4,979,601            —             —             4,979,601   
Total
         $   4,979,601           $  537,281,968              —          $  542,261,569     
1 See above Schedule of Investments for values in each sector.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Liabilities:
                                                                                 
Bank overdraft
           —          $ (7,947 )           —          $ (7,947 )  
TOB trust certificates
           —             (116,774,796 )           —             (116,774,796 )  
VRDP Shares
           —             (105,900,000 )           —             (105,900,000 )  
Total
            —          $ (222,682,743 )           —          $ (222,682,743 )  

There were no transfers between levels during the year ended July 31, 2013.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 25
 
  
Schedule of Investments July 31, 2013 BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)		      Value
Alabama — 2.1%
Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42
         $  1,950         $   1,958,405     
Birmingham Water Works Board, RB, Series B, 5.00%, 1/01/38
            550             554,499   
Courtland IDB, Refunding RB, International Paper Co. Projects, Series A, AMT, 5.20%, 6/01/25
            1,000            1,015,640   
Selma IDB, RB, International Paper Co. Project, Series A, 5.38%, 12/01/35
            545             545,501   
 
                          4,074,045   
Alaska — 0.8%
                                         
Alaska Municipal Bond Bank Authority, RB, Series 1, 5.75%, 9/01/33
            1,000            1,108,170   
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46
            690             502,444   
 
                          1,610,614   
California — 10.9%
                                         
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38
            2,740            2,914,675   
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42
            1,645            1,846,381   
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39
            710             804,302   
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.50%, 3/01/30
            1,500            1,571,850   
Grossmont Union High School District, GO, Election of 2008, Series B, 4.75%, 8/01/45
            2,230            2,208,257   
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38
            3,600            3,753,504   
Sacramento Municipal Utility District, RB, Series A, 5.00%, 8/15/37
            1,695            1,731,205   
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
            1,310            1,412,953   
San Francisco City & County Airports Commission, Refunding RB, Second Series A, AMT:
                                         
5.50%, 5/01/28
            1,065            1,135,237   
5.25%, 5/01/33
            830             852,236   
State of California, GO, Various Purposes, 6.00%, 3/01/33
            2,535            2,891,877   
 
                          21,122,477   
Colorado — 1.6%
                                         
City & County of Denver Colorado, ARB, Airport System, Series A, AMT:
                                         
5.50%, 11/15/28
            1,000            1,046,310   
5.50%, 11/15/30
            330             340,973   
5.50%, 11/15/31
            400             411,684   
Regional Transportation District, RB, Fastracks Project, Series A, 5.00%, 11/01/37
            1,265            1,312,336   
 
                          3,111,303   
Florida — 8.2%
                                         
County of Escambia Florida, Refunding RB, International Paper Co., Series B, AMT, 5.00%, 8/01/26
            600             591,768   
County of Lee Florida, Refunding RB, Series A, AMT, 5.38%, 10/01/32
            2,000            2,024,680   
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29 (a)
            2,795            2,978,436   
County of Miami-Dade Florida Aviation, Refunding RB, Series A, AMT, 5.00%, 10/01/31
            2,440            2,394,152   
County of Osceola Florida School Board, COP, Refunding, Series A, 5.00%, 6/01/28
            675             699,367   
Hillsborough County IDA, RB, National Gypsum Co., AMT:
                                         
Series A, 7.13%, 4/01/30
            2,500            2,499,875   
Series B, 7.13%, 4/01/30
            2,290            2,289,863   
                     
Municipal Bonds          Par
(000)		      Value
Florida (concluded)
                                         
Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38
         $    225          $     219,004     
JEA Florida Electric System, Refunding RB, Sub-Series C, 5.00%, 10/01/37
            1,790            1,825,496   
Manatee County Housing Finance Authority, RB, Series A, AMT (Fannie Mae), 5.90%, 9/01/40
            380             392,293   
 
                          15,914,934   
Georgia — 0.5%
                                         
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23
            880             1,034,748   
Illinois — 13.9%
                                         
Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39
            1,815            1,872,354   
Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/36
            615             629,539   
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41
            6,065            7,140,142   
City of Chicago Illinois, Refunding RB:
                                         
Sales Tax Revenue, Series A, 5.25%, 1/01/38
            765             797,176   
Second Lien, Water Project, 5.00%, 11/01/42
            1,545            1,521,531   
Illinois Finance Authority, RB:
                                         
Carle Foundation, Series A, 6.00%, 8/15/41
            4,000            4,339,120   
University of Chicago, Series B, 5.50%, 7/01/37
            1,000            1,072,170   
Illinois Finance Authority, Refunding RB:
                                         
Central DuPage Health, Series B, 5.38%, 11/01/39
            1,200            1,224,444   
Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39
            4,160            4,657,369   
Northwestern Memorial Healthcare, 5.00%, 8/15/37
            450             457,848   
Railsplitter Tobacco Settlement Authority, RB:
                                         
5.50%, 6/01/23
            1,370            1,522,947   
6.00%, 6/01/28
            390             425,545   
State of Illinois, GO:
                                         
5.50%, 7/01/33
            1,000            1,012,910   
5.50%, 7/01/38
            415             418,449   
 
                          27,091,544   
Indiana — 4.7%
                                         
Indiana Finance Authority, RB, Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44
            555             496,597   
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
            4,525            5,083,385   
Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 2/01/36
            3,360            3,527,631   
 
                          9,107,613   
Kansas — 1.8%
                                         
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29
            3,275            3,517,317   
Kentucky — 1.4%
                                         
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40
            1,300            1,375,309   
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34
            1,200            1,367,040   
 
                          2,742,349   
Louisiana — 2.4%
                                         
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35
            1,420            1,498,597   
Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 7/01/38
            730             721,766   

See Notes to Financial Statements.

26 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)		      Value
Louisiana (concluded)
                                         
Tobacco Settlement Financing Corp., Refunding RB, Series A:
                                         
5.50%, 5/15/28
         $  1,120         $   1,184,478     
5.50%, 5/15/29
            1,195            1,254,595   
 
                          4,659,436   
Maine — 1.5%
                                         
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32
            2,500            2,985,550   
Massachusetts — 4.0%
                                         
Massachusetts HFA, Refunding HRB, AMT:
                                         
Series B, 5.50%, 6/01/41
            3,000            3,075,240   
Series C, 5.35%, 12/01/42
            1,630            1,665,078   
Series F, 5.70%, 6/01/40
            1,995            2,054,810   
Massachusetts School Building Authority, RB, Dedicated Sales Tax Revenue, Senior Series A, 5.00%, 5/15/43
            955             992,407   
 
                          7,787,535   
Michigan — 2.9%
                                         
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41
            1,805            1,926,495   
Michigan State Building Authority, Refunding RB, Series I, 6.00%, 10/15/38
            1,250            1,408,900   
Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
            1,970            2,378,420   
 
                          5,713,815   
Mississippi — 3.7%
                                         
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40
            1,220            1,420,983   
Mississippi Development Bank, Refunding RB, Series A:
                                         
Jackson Mississippi Water & Sewer System (AGM), 5.00%, 9/01/30
            3,010            3,141,627   
Jackson Public School District Project, 5.00%, 4/01/28
            1,500            1,533,375   
University of Southern Mississippi, Refunding RB, S.M. Educational Building Corp., Residence Hall Construction Project:
                                         
5.00%, 3/01/33
            410             425,478   
5.00%, 3/01/38
            560             572,387   
 
                          7,093,850   
Missouri — 0.2%
                                         
The Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/28 (a)
            445             470,245   
Nevada — 3.5%
                                         
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34
            2,850            3,095,641   
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42
            3,375            3,666,904   
 
                          6,762,545   
New Jersey — 3.9%
                                         
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39
            2,250            2,366,617   
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38
            2,670            2,981,055   
Rutgers State University of New Jersey, Refunding RB:
                                         
Series J, 5.00%, 5/01/32
            1,250            1,324,113   
Series L, 5.00%, 5/01/32
            775             820,950   
 
                          7,492,735   
New York — 2.1%
                                         
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44
            2,610            2,722,961   
                     
Municipal Bonds          Par
(000)		      Value
New York (concluded)
                                         
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
         $  1,200         $   1,304,520     
 
                          4,027,481   
Ohio — 1.0%
                                         
Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37
            280             280,857   
Ohio State Turnpike Commission, RB, Junior Lien Infrastructure Projects, Series A-1 (a):
                                         
5.25%, 2/15/30
            750             792,030   
5.25%, 2/15/31
            750             788,467   
 
                          1,861,354   
Pennsylvania — 3.6%
                                         
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39
            1,075            1,165,655   
Pennsylvania Turnpike Commission, RB, Sub-Series A:
                                         
5.63%, 12/01/31
            2,455            2,625,720   
6.00%, 12/01/41
            3,000            3,273,780   
 
                          7,065,155   
Puerto Rico — 1.4%
                                         
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.00%, 8/01/42
            1,000            998,630   
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40
            1,750            1,676,973   
 
                          2,675,603   
Texas — 10.8%
                                         
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:
                                         
5.75%, 1/01/31
            1,000            1,060,570   
6.00%, 1/01/41
            2,600            2,756,052   
Series A, 5.00%, 1/01/33
            425             415,174   
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 (a)
            1,555            1,637,493   
City of Brownsville Texas Utilities System, Refunding RB, Series A, 5.00%, 9/01/29
            1,230            1,286,924   
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35
            1,800            2,006,442   
Dallas-Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/42
            2,900            2,738,267   
Dallas-Fort Worth International Airport, RB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38
            900             855,378   
Lower Colorado River Authority, Refunding RB, Series A, 5.00%, 5/15/29
            1,000            1,044,020   
North Texas Tollway Authority, Refunding RB, First Tier, Series K-1 (AGC), 5.75%, 1/01/38
            1,000            1,058,470   
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
            3,795            4,208,617   
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39
            1,700            1,904,697   
 
                          20,972,104   
Virginia — 2.1%
                                         
Lexington IDA, RB, Washington & Lee University, 5.00%, 1/01/43
            560             580,210   
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (b)
            800             1,007,336   
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OPCO, LLC Project, AMT, 6.00%, 1/01/37
            2,440            2,458,276   
 
                          4,045,822   

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 27
 
  
Schedule of Investments (continued)   BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)		      Value
Washington — 0.9%
                                         
Spokane Public Facilities District, RB, Hotel/Motel & Sales/Use Tax, Series A, 5.00%, 12/01/38
         $  1,830         $   1,816,879     
Wisconsin — 1.8%
                                         
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39
            3,470            3,544,709   
Total Municipal Bonds — 91.7%
                          178,301,762   
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
California — 21.7%
                                         
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44
            2,680            2,876,707   
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)
            4,200            4,486,188   
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40
            6,000            6,149,460   
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (d)
            5,250            5,566,496   
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
            7,697            8,910,452   
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
            790             804,188   
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39
            8,412            9,033,337   
University of California, RB, Series O, 5.75%, 5/15/34
            3,000            3,394,760   
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37
            1,000            1,033,740   
 
                          42,255,328   
Colorado — 1.2%
                                         
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34 (d)
            2,149            2,316,957   
District of Columbia — 3.6%
                                         
District of Columbia, RB, Series A, 5.50%, 12/01/30 (d)
            2,805            3,143,610   
District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39
            3,507            3,767,000   
 
                          6,910,610   
Florida — 3.1%
                                         
County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax, 5.00%, 7/01/42
            980             991,211   
Hillsborough County Aviation Authority, RB, Series A, AMT (AGC), 5.50%, 10/01/38
            3,869            4,086,647   
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40
            840             878,791   
 
                          5,956,649   
Illinois — 4.8%
                                         
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38
            5,300            5,880,933   
Illinois State Toll Highway Authority, RB:
                                         
Series A, 5.00%, 1/01/38
            1,479            1,496,570   
Series B, 5.50%, 1/01/33
            1,750            1,884,761   
 
                          9,262,264   
Massachusetts — 1.6%
                                         
Massachusetts School Building Authority, RB, Dedicated Sales Tax Revenue, Senior Series B, 5.00%, 10/15/41
            2,950            3,054,165   
Nevada — 9.5%
                                         
Clark County Water Reclamation District, GO:
                                         
Limited Tax, 6.00%, 7/01/38
            5,000            5,660,050   
Series B, 5.50%, 7/01/29
            5,668            6,432,299   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)		          Par
(000)		      Value
Nevada (concluded)
                                         
Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28
         $  6,070         $   6,440,877     
 
                          18,533,226   
New Hampshire — 1.2%
                                         
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (d)
            2,159            2,318,479   
New Jersey — 3.9%
                                         
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29
            2,251            2,346,639   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                         
Series A (AGM), 5.00%, 12/15/32
            4,000            4,157,960   
Series B, 5.25%, 6/15/36 (d)
            1,000            1,038,681   
 
                          7,543,280   
New York — 14.7%
                                         
Hudson New York Yards Infrastructure Corp., RB, Fiscal 2012, Senior Series A, 5.75%, 2/15/47 (d)
            1,290            1,369,484   
New York City Municipal Water Finance Authority, Refunding RB:
                                         
Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44
            4,408            4,598,998   
Series FF, 5.00%, 6/15/45
            3,859            3,958,689   
Series FF-2, 5.50%, 6/15/40
            2,504            2,727,350   
New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39
            2,499            2,601,481   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
            4,365            4,535,341   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d)
            2,560            2,771,789   
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
            5,700            5,958,894   
 
                          28,522,026   
Ohio — 1.6%
                                         
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38
            3,120            3,182,556   
South Carolina — 1.8%
                                         
South Carolina State Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (d)
            3,240            3,476,358   
Texas — 8.7%
                                         
City of San Antonio Texas, Refunding RB, Electric & Gas Systems, Series A, 5.25%, 2/01/31 (d)
            3,989            4,410,331   
Harris County Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39
            5,400            5,841,018   
North Texas Tollway Authority, RB, Special Project System, Series A, 5.50%, 9/01/41
            3,480            3,725,653   
Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43
            3,000            3,035,370   
 
                          17,012,372   
Utah — 1.0%
                                         
City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41
            1,995            1,994,475   
Virginia — 0.9%
                                         
County of Fairfax Virginia IDA, Refunding RB, Inova Health System, Series A, 5.50%, 5/15/35
            1,749            1,852,438   
Washington — 1.5%
                                         
University of Washington, Refunding RB, Series A, 5.00%, 7/01/41
            2,744            2,842,173   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 80.8%
                          157,033,356   
Total Long-Term Investments
(Cost — $323,573,007) — 172.5%
                          335,335,118   

See Notes to Financial Statements.

28 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
    
Short-Term Securities		          Shares      Value
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)
            7,703,960         $ 7,703,960   
Total Short-Term Securities
(Cost — $7,703,960) — 4.0%
                          7,703,960   
Total Investments (Cost — $331,276,967) — 176.5%
                          343,039,078   
Liabilities in Excess of Other Assets — (2.1%)
                          (4,255,455 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (43.8%)
                          (85,066,808 )  
VRDP Shares, at Liquidation Value — (30.6%)
                          (59,400,000 )  
Net Assets Applicable to Common Shares — 100.0%
                       $ 194,316,815   

Notes to Schedule of Investments

(a)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty
   
 Value
    
 Unrealized
Appreciation
(Depreciation)
Citigroup Global Markets
        $ 1,580,497         $ 2,010   
Morgan Stanley Co.
        $ 2,978,436         $ (35,552 )  
Royal Bank of Canada
        $ 470,245         $ (5,380 )  
Wells Fargo
        $ 1,637,493         $ 6,578   

(b)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)      
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(d)      
All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the Liquidity Provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from 10/1/16 to 11/15/19 is $18,095,736.
(e)      
Investments in issuers considered to be an affiliate of the Fund during the year July 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate
   
 Shares
Held at
July 31, 2012
    
 Net
Activity
    
 Shares
Held at
July 31, 2013
    
 Income
FFI Institutional Tax-Exempt Fund
           176,582            7,527,378            7,703,960         $ 520    

(f)      
Represents the current yield as of report date.
•      
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•      
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•      
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•      
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•      
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 29
 
  
Schedule of Investments (concluded)   BlackRock MuniYield Investment Fund (MYF)
   

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Assets:
                                                                                 
Investments:
                                                                                 
Long-Term Investments 1
            —          $ 335,335,118            —          $ 335,335,118   
Short-Term Securities
         $ 7,703,960            —             —             7,703,960   
Total
         $   7,703,960           $  335,335,118              —          $  343,039,078     
1 See above Schedule of Investments for values in each state or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Liabilities:
                                                                                 
Bank overdraft
            —          $ (6,147 )           —          $ (6,147 )  
TOB trust certificates
            —             (85,029,096 )           —             (85,029,096 )  
VRDP Shares
            —             (59,400,000 )           —             (59,400,000 )  
Total
            —          $ (144,435,243 )           —          $ (144,435,243 )  

There were no transfers between levels during the year ended July 31, 2013.

See Notes to Financial Statements.

30 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments July 31, 2013 BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
             
Municipal Bonds          Par
(000)
      Value
New Jersey — 128.1%
Corporate — 7.2%
                                         
Middlesex County Improvement Authority, RB, Senior Heldrich Center Hotel, Series A, 5.00%, 1/01/20
         $   655          $    470,015   
New Jersey EDA, Refunding RB:
                                         
New Jersey American Water Co., Inc. Project,
Series A, AMT, 5.70%, 10/01/39
            2,925            3,076,603   
New Jersey American Water Co., Inc. Project,
Series B, AMT, 5.60%, 11/01/34
            2,430            2,560,807   
United Water of New Jersey, Inc.,
Series B (AMBAC), 4.50%, 11/01/25
            4,500            4,630,230   
Salem County Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29
            4,550            4,638,543   
 
                          15,376,198   
County/City/Special District/School District — 16.0%
                                         
Bergen County New Jersey Improvement Authority, Refunding RB, Fair Lawn Community Center, Inc. Project, 5.00%, 9/15/34
            1,470            1,561,728   
City of Margate City New Jersey, GO, Refunding, Improvement:
                                         
5.00%, 1/15/26
            1,200            1,290,072   
5.00%, 1/15/27
            845             896,714   
City of Perth Amboy New Jersey, GO, Refunding CAB (AGM):
                                         
5.00%, 7/01/34
            1,925            1,955,685   
5.00%, 7/01/33
            1,575            1,607,461   
County of Hudson New Jersey, COP, Refunding (NPFGC), 6.25%, 12/01/16
            1,500            1,707,810   
Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
                                         
5.50%, 10/01/28
            2,700            3,080,808   
5.50%, 10/01/29
            5,085            5,758,559   
Gloucester County Improvement Authority, RB, County Guaranteed Loan—County Capital Program, 5.00%, 4/01/38
            1,000            1,024,160   
Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44
            4,800            4,971,696   
Monmouth County Improvement Authority, Refunding RB, Government Loan (AMBAC):
                                         
5.00%, 12/01/15
            5             5,012   
5.00%, 12/01/16
            5             5,011   
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37
            2,875            2,479,026   
Union County Improvement Authority, RB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42
            2,835            2,903,409   
Union County Utilities Authority, Refunding RB, Series A:
                                         
Covanta Union, AMT, 5.25%, 12/01/31
            670             682,167   
New Jersey Solid Waste System, County Deficiency Agreement, 5.00%, 6/15/41
            4,115            4,255,445   
 
                          34,184,763   
Education — 21.9%
                                         
New Jersey EDA, RB:
                                         
MSU Student Housing Project Provide,
5.88%, 6/01/42
            1,500            1,571,085   
School Facilities Construction, Series CC-2,
5.00%, 12/15/31
            1,700            1,768,017   
New Jersey EDA, Refunding RB, School Facilities Construction, Series GG, 5.25%, 9/01/27
            3,000            3,224,160   
New Jersey Educational Facilities Authority, RB, Montclair State University, Series J, 5.25%, 7/01/38
            1,140            1,181,952   
New Jersey Educational Facilities Authority, Refunding RB:
                                         
College of New Jersey, Series D (AGM),
5.00%, 7/01/35
            6,115            6,157,132   
                     
Municipal Bonds          Par
(000)
      Value
New Jersey (continued)
Education (concluded)
                                         
New Jersey Educational Facilities Authority, Refunding RB (concluded):
                                         
Georgian Court University, Series D, 5.25%, 7/01/37
         $  1,000         $      994,560   
Kean University, Series A, 5.50%, 9/01/36
            4,500            4,739,400   
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31
            1,250            1,288,250   
Ramapo College, Series B, 5.00%, 7/01/37
            155             158,123   
Ramapo College, Series B, 5.00%, 7/01/42
            340             345,858   
Rider University, Series A, 5.00%, 7/01/32
            1,000            980,780   
Rowan University, Series B (AGC), 5.00%, 7/01/24
            1,800            1,948,788   
Seton Hall University, Series D, 5.00%, 7/01/38
            395             407,134   
Seton Hall University, Series D, 5.00%, 7/01/43
            255             261,610   
University of Medicine & Dentistry, Series B, 7.13%, 6/01/19 (a)
            1,300            1,689,649   
University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (a)
            1,625            2,145,747   
New Jersey Higher Education Student Assistance Authority, Refunding RB:
                                         
Series 1, AMT, 5.75%, 12/01/29
            4,045            4,226,944   
Series 1A, 5.00%, 12/01/25
            965             1,002,452   
Series 1A, 5.00%, 12/01/26
            605             623,350   
Series 1A, 5.25%, 12/01/32
            900             923,310   
New Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42
            4,320            4,400,741   
Rutgers — The State University of New Jersey, RB, Series F, 5.00%, 5/01/39
            500             519,940   
Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43
            5,870            6,047,744   
 
                          46,606,726   
Health — 14.7%
                                         
New Jersey EDA, RB, Masonic Charity Foundation of New Jersey:
                                         
5.25%, 6/01/24
            1,425            1,442,299   
5.25%, 6/01/32
            685             687,918   
New Jersey EDA, Refunding RB, First Mortgage, Winchester, Series A:
                                         
5.75%, 11/01/24
            2,500            2,518,250   
5.80%, 11/01/31
            1,000            1,001,520   
New Jersey Health Care Facilities Financing Authority, RB:
                                         
Children’s Specialized Hospital, Series A, 5.50%, 7/01/36
            1,540            1,550,765   
Hunterdon Medical Center, Series A, 5.13%, 7/01/35
            1,950            1,950,175   
Meridian Health, Series I (AGC), 5.00%, 7/01/38
            955             960,749   
Virtua Health (AGC), 5.50%, 7/01/38
            2,500            2,563,225   
New Jersey Health Care Facilities Financing Authority, Refunding RB:
                                         
AHS Hospital Corp., 6.00%, 7/01/41
            2,435            2,736,234   
Barnabas Health, Series A, 5.00%, 7/01/25
            210             217,323   
Barnabas Health, Series A, 5.63%, 7/01/32
            1,090            1,119,692   
Barnabas Health, Series A, 5.63%, 7/01/37
            3,030            3,088,933   
Kennedy Health System, 5.00%, 7/01/31
            750             762,923   
Meridian Health System, 5.00%, 7/01/23
            500             540,095   
Meridian Health System, 5.00%, 7/01/27
            1,000            1,028,950   
Meridian Health System Obligation, 5.00%, 7/01/25
            1,000            1,053,630   
Meridian Health System Obligation, 5.00%, 7/01/26
            830             863,897   
Robert Wood Johnson, 5.00%, 7/01/31
            1,000            1,013,100   
South Jersey Hospital, 5.00%, 7/01/36
            385             382,386   
South Jersey Hospital, 5.00%, 7/01/46
            1,650            1,613,436   
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29
            4,155            4,109,918   
 
                          31,205,418   

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 31
 
  
Schedule of Investments (continued)   BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
   
Municipal Bonds          Par
(000)
      Value
New Jersey (continued)
Housing — 8.8%
                                         
New Jersey Housing & Mortgage Finance Agency, RB:
                                         
M/F Housing, Series A, 4.55%, 11/01/43
         $  2,880         $    2,591,942   
S/F Housing, Series AA, 6.50%, 10/01/38
            815             838,073   
S/F Housing, Series CC, 5.00%, 10/01/34
            2,215            2,266,388   
S/F Housing, Series U, AMT, 4.95%, 10/01/32
            555             559,679   
S/F Housing, Series U, AMT, 5.00%, 10/01/37
            765             767,808   
S/F Housing, Series X, AMT, 4.85%, 4/01/16
            1,090            1,117,021   
S/F Housing, Series X, AMT, 5.05%, 4/01/18
            295             320,500   
Series A, 4.75%, 11/01/29
            2,305            2,330,931   
Series A, AMT (NPFGC), 4.90%, 11/01/35
            1,365            1,327,053   
New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series T, AMT, 4.65%, 10/01/32
            4,505            4,522,569   
Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%, 12/01/38
            1,750            1,995,263   
 
                          18,637,227   
State — 30.9%
                                         
Garden State Preservation Trust, RB (AGM):
                                         
CAB, Series B, 3.73%, 11/01/23 (b)
            1,860            1,272,835   
CAB, Series B, 4.42%, 11/01/28 (b)
            4,540            2,330,836   
Election of 2005, Series A, 5.80%, 11/01/15 (a)
            2,500            2,790,250   
New Jersey EDA, RB:
                                         
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33
            12,500            12,857,750   
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25
            2,000            2,252,320   
School Facilities Construction, Series CC-2, 5.00%, 12/15/32
            1,300            1,347,320   
School Facilities Construction, Series KK, 5.00%, 3/01/35
            1,500            1,518,510   
School Facilities Construction, Series KK, 5.00%, 3/01/38
            1,470            1,488,140   
School Facilities Construction, Series L (AGM), 5.00%, 3/01/15 (a)
            5,800            6,214,294   
School Facilities Construction, Series P, 5.00%, 9/01/15
            3,000            3,272,640   
School Facilities Construction, Series P, 5.25%, 9/01/15 (a)
            2,710            2,980,404   
School Facilities Construction, Series Y, 5.00%, 9/01/33
            880             897,917   
School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34
            3,665            3,954,058   
New Jersey EDA, Refunding RB:
                                         
Cigarette Tax, 5.00%, 6/15/26
            440             445,584   
Cigarette Tax, 5.00%, 6/15/28
            720             711,778   
Cigarette Tax, 5.00%, 6/15/29
            1,760            1,712,902   
School Facilities Construction, Series AA, 5.50%, 12/15/29
            3,000            3,207,390   
School Facilities Construction, Series AA, 5.25%, 12/15/33
            1,000            1,045,620   
School Facilities Construction, Series GG, 5.25%, 9/01/26
            7,000            7,597,380   
New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38
            2,300            2,328,865   
State of New Jersey, COP, Equipment Lease Purchase, Series A:
                                         
5.25%, 6/15/27
             4,200               4,449,816   
5.25%, 6/15/28
            1,100            1,157,750   
 
                          65,834,359   
                     
Municipal Bonds          Par
(000)
      Value
New Jersey (concluded)
Transportation — 27.5%
                                         
Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40
         $ 1,535         $ 1,570,428   
New Jersey State Turnpike Authority, RB:
                                         
Growth & Income Securities, Series B (AMBAC), 0.00%, 1/01/35 (c)
             4,870               4,490,091     
Series E, 5.25%, 1/01/40
            2,525            2,589,413   
New Jersey State Turnpike Authority, Refunding RB:
                                         
Series A, 5.00%, 1/01/35
            1,000            1,022,710   
Series B, 5.00%, 1/01/30
            2,660            2,773,529   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                         
6.00%, 12/15/38
            1,950            2,193,087   
CAB, Series C (AMBAC), 5.88%, 12/15/35 (b)
            4,140            1,132,207   
Series A, 6.00%, 6/15/35
            6,030            6,632,035   
Series A, 5.88%, 12/15/38
            3,650            4,075,225   
Series A, 5.50%, 6/15/41
            6,000            6,308,400   
Series A (AGC), 5.63%, 12/15/28
            1,250            1,414,950   
Series A (AGC), 5.50%, 12/15/38
            1,000            1,072,870   
Series B, 5.00%, 6/15/42
            7,340            7,425,291   
Port Authority of New York & New Jersey, RB:
                                         
Consolidated, 169th Series, AMT, 5.00%, 10/15/41
            250             252,025   
Consolidated, 93rd Series, 6.13%, 6/01/94
            5,000            5,536,350   
JFK International Air Terminal, Series 8, 6.00%, 12/01/42
            2,700            2,985,903   
Port Authority of New York & New Jersey, Refunding RB, Consolidated AMT:
                                         
152nd Series, 5.75%, 11/01/30
            3,300            3,597,033   
152nd Series, 5.25%, 11/01/35
            240             247,190   
172nd Series, 5.00%, 10/01/34
            1,500            1,530,570   
South Jersey Transportation Authority, Refunding RB, Series A:
                                         
5.00%, 11/01/28
            1,075            1,127,675   
5.00%, 11/01/29
            575             599,173   
 
                          58,576,155   
Utilities — 1.1%
                                         
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 5.09%, 9/01/31 (b)
            6,000            2,417,760   
Total Municipal Bonds in New Jersey
                          272,838,606   
 
Puerto Rico — 5.6%
State — 5.6%
                                         
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:
                                         
5.75%, 8/01/37
            6,000            5,870,160   
6.00%, 8/01/42
            4,000            3,994,520   
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40
            2,220            2,127,359   
Total Municipal Bonds in Puerto Rico
                          11,992,039   
Total Municipal Bonds — 133.7%
                          284,830,645   
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
                                         
New Jersey — 30.4%
County/City/Special District/School District — 6.1%
                                         
Union County Utilities Authority, Refunding LRB, Covanta Union, Series A, AMT, 5.25%, 12/01/31
            12,820            13,052,811   
Education — 1.0%
                                         
Rutgers State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39
            2,009            2,089,114   

See Notes to Financial Statements.

32 ANNUAL REPORT JULY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
             
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
          Par
(000)		      Value
New Jersey (continued)
State — 7.5%
                                         
Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.75%, 11/01/28
         $  5,460         $    6,510,941     
New Jersey EDA, RB, School Facilities Construction (AGC):
                                         
6.00%, 12/15/18 (a)
            1,185            1,332,794   
6.00%, 12/15/34
            2,415            2,717,854   
New Jersey EDA, Refunding RB, 5.00%, 3/01/29 (e)
            5,232            5,429,124   
 
                          15,990,713   
Transportation — 15.8%
                                         
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (e)
            8,820            8,997,723   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                         
Series A (AGM), 5.00%, 12/15/32
            4,100            4,261,909   
Series B, 5.25%, 6/15/36 (e)
            5,001            5,193,404   
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41
            11,250            11,341,125   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
          Par
(000)		      Value
New Jersey (concluded)
Transportation (concluded)
                                         
Port Authority of New York & New Jersey, Refunding RB, 152nd Series, Consolidated, AMT, 5.25%, 11/01/35
         $  3,764          $    3,876,450   
 
                          33,670,611   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 30.4%
                          64,803,249   
Total Long-Term Investments
(Cost — $345,895,956) — 164.1%
                          349,633,894   
Short-Term Securities
            Shares                  
BIF New Jersey Municipal Money Fund, 0.00% (f)(g)
            3,819,692            3,819,692   
Total Short-Term Securities
(Cost — $3,819,692) — 1.8%
                          3,819,692   
Total Investments (Cost — $349,715,648) — 165.9%
                          353,453,586   
Other Assets Less Liabilities — 0.7%
                          1,414,635   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.6%)
                          (39,569,586 )  
VRDP Shares, at Liquidation Value — (48.0%)
                          (102,200,000 )  
Net Assets Applicable to Common Shares — 100.0%
                       $ 213,098,635   

Notes to Schedule of Investments

(a)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c)      
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(d)      
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)      
All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the Liquidity Provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from June 15, 2019 to September 1, 2020 is $14,348,772.
(f)      
Investments in issuers considered to be an affiliate of the Fund during the year July 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate
   
 Shares
Held at
July 31, 2012
    
 Net
Activity
    
 Shares
Held at
July 31, 2013
    
 Income
BIF New Jersey Municipal Money Fund
           1,495,608            2,324,084            3,819,692           —    

(g)      
Represents the current yield as of report date.
       
For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund’s management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•      
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•      
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access
•      
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•      
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 33
 
  
Schedule of Investments (concluded)   BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Assets:
                                                                                 
Investments:
                                                                                 
Long-Term Investments 1
            —          $ 349,633,894           —          $ 349,633,894   
Short-Term Securities
         $ 3,819,692            —            —             3,819,692   
Total
         $   3,819,692           $  349,633,894             —          $  353,453,586     

1 See above Schedule of Investments for values in each sector or political subdivision.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
   
 Level 1
    
 Level 2
    
 Level 3
    
 Total
Liabilities:
                                                                                 
Bank overdraft
          —          $ (6,115 )           —          $ (6,115 )  
TOB trust certificates
          —             (39,555,492 )           —             (39,555,492 )  
VRDP Shares
          —             (102,200,000 )           —             (102,200,000 )  
Total
           —          $ (141,761,607 )           —          $ (141,761,607 )  

There were no transfers between levels during the year ended July 31, 2013.

See Notes to Financial Statements.

34 ANNUAL REPORT JULY 31, 2013
 
  
Statements of Assets and Liabilities  

July 31, 2013
          BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)		      BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)		      BlackRock
MuniYield
California
Fund, Inc.
(MYC)		      BlackRock
MuniYield
Investment
Fund
(MYF)		      BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Assets
Investments at value — unaffiliated1
         $    94,873,787         $   101,873,248         $   537,281,968         $   335,335,118         $   349,633,894   
Investments at value — affiliated2
            802,542            210,260            4,979,601            7,703,960            3,819,692   
Interest receivable
            955,700            775,015            7,467,993            4,232,020            3,570,238   
Investments sold receivable
            1,556,553            178,973            3,076,110            2,809,281            —    
Deferred offering costs
            157,505            179,666            243,473            201,196            249,885   
Prepaid expenses
           39,277            1,117            5,746            3,636            3,729   
Total assets
            98,385,364            103,218,279            553,054,891            350,285,211            357,277,438   
                                             
Accrued Liabilities
Investments purchased payable
            1,033,566            —             9,146,324            8,155,106            —    
Income dividends payable
            263,115            318,362            1,685,317            1,076,307            1,057,052   
TOB trust payable
           665,000            —             —             2,030,000            1,110,000   
Investment advisory fees payable
            45,452            44,040            234,269            146,419            151,913   
Interest expense and fees payable
            1,944            407             50,065            37,712            14,094   
Officer’s and Directors’ fees payable
            944             979             5,130            3,179            3,410   
Bank overdraft
            —             2,391            7,947            6,147            6,115   
Other accrued expenses payable
           23,143            55,408            106,837            84,430            80,727   
Total accrued liabilities
           2,033,164            421,587            11,235,889            11,539,300            2,423,311   
                                             
Other Liabilities
TOB trust certificates
           5,537,752            3,330,000            116,774,796            85,029,096            39,555,492   
VRDP Shares, at liquidation value of $100,000 per share3,4,5
            29,600,000            37,300,000            105,900,000            59,400,000            102,200,000   
Total other liabilities
            35,137,752            40,630,000            222,674,796            144,429,096            141,755,492   
Total liabilities
            37,170,916            41,051,587            233,910,685            155,968,396            144,178,803   
Net Assets Applicable to Common Shareholders
        $ 61,214,448         $ 62,166,692         $ 319,144,206         $ 194,316,815         $ 213,098,635   
                                             
Net Assets Applicable to Common Shareholders Consist of
Paid-in capital6,7
         $ 59,619,114         $ 60,760,018         $ 302,001,440         $ 189,742,464         $ 205,588,973   
Undistributed net investment income
            795,824            878,921            4,038,794            3,757,218            4,468,086   
Accumulated net realized loss
           (1,156,958 )           (860,821 )           (2,449,453 )           (10,944,978 )           (696,362 )  
Net unrealized appreciation/depreciation
            1,956,468            1,388,574            15,553,425            11,762,111            3,737,938   
Net Assets Applicable to Common Shareholders
        $ 61,214,448         $ 62,166,692         $ 319,144,206         $ 194,316,815         $ 213,098,635   
Net asset value per Common Share
         $ 14.54         $ 13.57         $ 14.96         $ 14.26         $ 14.92   
 
   1 Investments at cost — unaffiliated
        $ 92,917,319         $ 100,484,674         $ 521,728,543         $ 323,573,007         $ 345,895,956   
 
   2 Investments at cost — affiliated
        $ 802,542         $ 210,260         $ 4,979,601         $ 7,703,960         $ 3,819,692   
 
   3 Preferred Shares outstanding, par value $0.10 per share
            296             373             1,059            —             1,022   
 
   4 Preferred Shares outstanding, par value $0.05 per share
            —             —             —             594             —    
 
   5 Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”)
            1,536            1,985            8,059            1,000,594            5,782   
 
   6 Common Shares outstanding
            4,209,844            4,580,755            21,333,129            13,624,137            14,284,482   
 
   7 Common Shares authorized
            200 million              200 million              200 million              unlimited             200 million     

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 35
 
  
Statements of Operations  

Year Ended July 31, 2013
          BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)		      BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)		      BlackRock
MuniYield
California
Fund, Inc.
(MYC)		      BlackRock
MuniYield
Investment
Fund
(MYF)		      BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Investment Income
Interest
         $     4,236,419         $     4,935,422         $    24,563,527         $    16,269,445         $    16,198,077   
Income — affiliated
           37             123             12             520             —    
Total income
            4,236,456            4,935,545            24,563,539            16,269,965            16,198,077   
                                             
Expenses
Investment advisory
            562,529            546,320            2,907,474            1,834,940            1,865,613   
Liquidity fees
            265,048            —             —             —             —    
Professional
            74,041            50,968            138,131            115,909            114,457   
Remarketing fees on Preferred Shares
           30,010            —             —             —             —    
Accounting services
            21,354            21,721            86,938            60,935            60,779   
Transfer agent
            18,145            20,217            30,373            28,558            28,911   
Custodian
            9,213            8,899            28,603            18,915            21,121   
Printing
            8,687            8,804            10,846            10,015            10,090   
Officer and Directors
           5,890            6,116            32,511            20,035            21,173   
Registration
            5,532            1,227            5,586            5,579            5,533   
Miscellaneous
            46,923            40,845            61,121            43,473            58,833   
Total expenses excluding interest expense, fees and amortization of offering costs
            1,047,372            705,117            3,301,583            2,138,359            2,186,510   
Interest expense, fees and amortization of offering costs1
            139,640            432,064            1,925,166            1,285,465            1,339,828   
Total expenses
            1,187,012            1,137,181            5,226,749            3,423,824            3,526,338   
Less fees waived by Manager
            (1,104 )           (349 )           (6,059 )           (1,172 )           (5,055 )  
Total expenses after fees waived
           1,185,908            1,136,832            5,220,690            3,422,652            3,521,283   
Net investment income
            3,050,548            3,798,713            19,342,849            12,847,313            12,676,794   
                                             
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
                                                                                                     
Investments
           793,787            223,425            (801,819 )           (252,822 )           11,405   
Financial futures contracts
           59,654            32,872            535,022            761,196            828,513   
 
            853,441            256,297            (266,797 )           508,374            839,918   
Net change in unrealized appreciation/depreciation on investments
            (6,746,189 )           (7,336,879 )           (41,706,382 )           (28,251,097 )           (28,435,795 )  
Total realized and unrealized loss
            (5,892,748 )           (7,080,582 )           (41,973,179 )           (27,742,723 )           (27,595,877 )  
Distributions to VRDP Shareholders from net realized gain
            —             —             —             —             (43,759 )  
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations
         $ (2,842,200 )        $ (3,281,869 )        $ (22,630,330 )        $ (14,895,410 )        $ (14,962,842 )  
1   Related to TOBs and/or VRDP Shares.

See Notes to Financial Statements.

36 ANNUAL REPORT JULY 31, 2013
 
  
Statements of Changes in Net Assets  BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

         Year Ended July 31,
    
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
          2013      2012
Operations
Net investment income
        $     3,050,548         $     3,111,996   
Net realized gain
            853,441            126,657   
Net change in unrealized appreciation/depreciation
            (6,746,189 )           6,079,939   
Dividends to AMPS shareholders from net investment income
            —             (68,450 )  
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
           (2,842,200 )           9,250,142   
                     
Dividends to Common Shareholders From1
Net investment income
            (3,156,624 )           (3,110,662 )  
                     
Capital Share Transactions
Reinvestment of common dividends
            54,512            —    
                     
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders
            (5,944,312 )           6,139,480   
Beginning of year
            67,158,760            61,019,280   
End of year
        $ 61,214,448         $ 67,158,760   
Undistributed net investment income
         $ 795,824         $ 879,509   

BlackRock MuniYield Arizona Fund, Inc. (MZA)

         Year Ended July 31,
    
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
          2013      2012
Operations
Net investment income
        $     3,798,713         $     3,683,450   
Net realized gain
            256,297            778,352   
Net change in unrealized appreciation/depreciation
            (7,336,879 )           7,268,040   
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
           (3,281,869 )           11,729,842   
                     
Dividends to Common Shareholders From1
Net investment income
            (3,816,654 )           (3,806,859 )  
                     
Capital Share Transactions
Reinvestment of common dividends
            194,255            61,778   
                     
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders
            (6,904,268 )           7,984,761   
Beginning of year
            69,070,960            61,086,199   
End of year
        $ 62,166,692         $ 69,070,960   
Undistributed net investment income
         $ 878,921         $ 891,309   
1   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 37
 
  
Statements of Changes in Net Assets  BlackRock MuniYield California Fund, Inc. (MYC)

         Year Ended July 31,
    
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
          2013      2012
Operations
Net investment income
        $    19,342,849         $    20,005,315   
Net realized gain (loss)
           (266,797 )           6,412,710   
Net change in unrealized appreciation/depreciation
            (41,706,382 )           48,830,780   
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
           (22,630,330 )           75,248,805   
                     
Dividends to Common Shareholders From1
Net investment income
            (20,214,466 )           (20,187,902 )  
                     
Capital Share Transactions
Reinvestment of common dividends
            648,309            —    
                     
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders
            (42,196,487 )           55,060,903   
Beginning of year
            361,340,693            306,279,790   
End of year
        $ 319,144,206         $ 361,340,693   
Undistributed net investment income
         $ 4,038,794         $ 4,900,807   

BlackRock MuniYield Investment Fund (MYF)

         Year Ended July 31,
    
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
          2013      2012
Operations
Net investment income
        $    12,847,313         $    12,618,649   
Net realized gain
            508,374            3,366,670   
Net change in unrealized appreciation/depreciation
            (28,251,097 )           32,015,417   
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
           (14,895,410 )           48,000,736   
                     
Dividends to Common Shareholders From1
Net investment income
            (12,908,151 )           (12,738,803 )  
                     
Capital Share Transactions
Reinvestment of common dividends
            342,807            388,311   
                     
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders
            (27,460,754 )           35,650,244   
Beginning of year
            221,777,569            186,127,325   
End of year
        $ 194,316,815         $ 221,777,569   
Undistributed net investment income
         $ 3,757,218         $ 3,803,497   
1   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

38 ANNUAL REPORT JULY 31, 2013
 
  
Statements of Changes in Net Assets  BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

         Year Ended July 31,
    
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
          2013      2012
Operations
Net investment income
        $    12,676,794         $    12,296,804   
Net realized gain
            839,918            809,303   
Net change in unrealized appreciation/depreciation
            (28,435,795 )           29,093,368   
Distributions to VRDP Shareholders from net realized gain
            (43,759 )           —    
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
           (14,962,842 )           42,199,475   
                     
Dividends and Distributions to Common Shareholders From1
Net investment income
           (12,730,155 )           (12,674,633 )  
Net realized gain
            (918,415 )           —    
Decrease in net assets resulting from dividends and distributions to Common Shareholders
           (13,648,570 )           (12,674,633 )  
                     
Capital Share Transactions
Reinvestment of common dividends and distributions
            950,740            113,352   
                     
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders
            (27,660,672 )           29,638,194   
Beginning of year
            240,759,307            211,121,113   
End of year
        $ 213,098,635         $ 240,759,307   
Undistributed net investment income
         $ 4,468,086         $ 4,512,450   
1   Dividends and distributions are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 39
 
  
Statements of Cash Flows    

Year Ended July 31, 2013
          BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)		      BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)		      BlackRock
MuniYield
California
Fund, Inc.
(MYC)		      BlackRock
MuniYield
Investment
Fund, Inc.
(MYF)		      BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
Cash Provided by (Used for) Operating Activities
Net decrease in net assets resulting from operations, excluding distributions to VRDP Shareholders
         $    (2,842,200 )        $    (3,281,869 )        $ (22,630,330 )        $   (14,895,410 )        $   (14,919,083 )  
Adjustments to reconcile net increase in net assets
resulting from operations to net cash provided by (used for)
operating activities:
                                                                                                     
(Increase) decrease in interest receivable
            (13,095 )           (17,704 )           469,561            112,409            (144,659 )  
(Increase) decrease in prepaid expenses
            (37,843 )           492             2,254            1,303            1,444   
Decrease in investment advisory fees payable
            (2,039 )           (2,128 )           (13,696 )           (6,960 )           (2,795 )  
Increase (decrease) in interest expense and fees payable
            (636 )           (41 )           (12,774 )           (5,023 )           2,413   
Increase (decrease) in other accrued expenses payable
            (25,164 )           (10,632 )           49,535            32,628            41,939   
Decrease in Officer’s and Directors’ fees payable
            (511 )           (495 )           (2,071 )           (1,184 )           (1,689 )  
Net realized and unrealized loss on investments
            5,952,402            7,113,454            42,508,201            28,503,919            28,424,390   
Amortization of premium and accretion of discount on investments
            359,252            123,827            1,924,537            1,106,400            587,256   
Amortization of deferred offering costs
            22,399            45,794            2,011            6,353            8,098   
Proceeds from sales of long-term investments
            21,347,049            16,622,681            157,591,672            122,311,395            26,017,806   
Purchases of long-term investments
            (21,329,608 )           (18,115,615 )           (158,316,288 )           (118,897,657 )           (38,812,485 )  
Net proceeds from sales (purchases) of short-term securities
            (322,460 )           1,141,361            (1,936,289 )           (7,527,378 )           (2,324,084 )  
Cash provided by (used for) operating activities
            3,107,546            3,619,125            19,636,323            10,740,795            (1,121,449 )  
                                             
Cash Provided by (Used for) Financing Activities
Cash receipts from TOB trust certificates
           —             —             15,500,250            2,849,170            13,852,796   
Cash payments for TOB trust certificates
           (5,647 )           —             (15,581,355 )           (1,674,017 )           —    
Cash dividends paid to Common Shareholders
            (3,101,899 )           (3,621,516 )           (19,563,165 )           (12,563,725 )           (12,693,703 )  
Cash distributions paid to VRDP Shareholders
            —             —             —             —             (43,759 )  
Increase in bank overdraft
            —             2,391            7,947            6,147            6,115   
Cash provided by (used for) financing activities
            (3,107,546 )           (3,619,125 )           (19,636,323 )           (11,382,425 )           1,121,449   
                                             
Cash
Net decrease in cash
            —             —             —          $ (641,630 )           —    
Cash at beginning of period
            —             —             —             641,630            —    
Cash at end of period
            —             —             —             —             —    
                                             
Cash Flow Information
Cash paid during the period for interest and fees
         $ 117,877         $ 386,311         $ 1,935,929         $ 1,284,135         $ 1,373,076   
                                             
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends paid to Common Shareholders
         $ 54,512         $ 194,255         $ 648,309         $ 342,807         $ 950,740   

See Notes to Financial Statements.

40 ANNUAL REPORT JULY 31, 2013
 
  
Financial Highlights  BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

         Year Ended July 31,
    
         2013      2012      2011      2010      2009
Per Share Operating Performance
Net asset value, beginning of year
         $ 15.97         $ 14.51         $ 14.50         $ 12.99         $ 13.51   
Net investment income1
            0.72            0.74            0.87            0.88            0.87   
Net realized and unrealized gain (loss)
           (1.40 )           1.48            (0.03 )           1.40            (0.55 )  
Dividends to AMPS shareholders from net investment income
           —             (0.02 )           (0.10 )           (0.10 )           (0.20 )  
Net increase (decrease) from investment operations
           (0.68 )           2.20            0.74            2.18            0.12   
Dividends to Common Shareholders from net investment income2
            (0.75 )           (0.74 )           (0.73 )           (0.67 )           (0.64 )  
Net asset value, end of year
         $ 14.54         $ 15.97         $ 14.51         $ 14.50         $ 12.99   
Market price, end of year
         $ 13.06         $ 15.80         $ 12.98         $ 13.54         $ 11.60   
                                             
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           (4.38 )%         15.73 %           5.71 %           17.67 %           2.26 %  
Based on market price
           (13.18 )%         28.00 %           1.26 %           23.05 %           1.79 %  
                                             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
            1.79 %           1.82 %4         1.2 3%4         1.20 %4         1.33 %4
Total expenses after fees waived and paid indirectly
            1.78 %           1.81 %4         1.2 2%4         1.12 %4         1.15 %4
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5
            1.57 %6         1.57 %4,6         1.21 %4         1.12 %4         1.11 %4
Net investment income
            4.59 %           4.86 %4         6.16 %4         6.30 %4         7.01 %4
Dividends to AMPS shareholders
            —             0.11 %           0.71 %           0.75 %           1.59 %  
Net investment income to Common Shareholders
           4.59 %           4.75 %           5.45 %           5.55 %           5.42 %  
                                             
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)
         $    61,214         $    67,159         $    61,019         $    61,010         $    54,642   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
            —             —          $ 29,632         $ 29,625         $ 29,625   
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
         $ 29,600         $ 29,600            —             —             —    
Portfolio turnover
           21 %           27 %           23 %           27 %           32 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
           —             —          $ 76,499         $ 76,492         $ 71,119   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
         $ 306,806         $ 326,888            —             —             —    
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends and distributions.
4   Do not reflect the effect of dividends to AMPS shareholders.
5   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
6   For the years ended July 31, 2013 and July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.13% and 1.18%, respectively.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 41
 
  
Financial Highlights  BlackRock MuniYield Arizona Fund, Inc. (MZA)

         Year Ended July 31,
    
         2013      2012      2011      2010      2009
Per Share Operating Performance
Net asset value, beginning of year
         $ 15.12         $ 13.38         $ 13.73         $ 12.40         $ 12.81   
Net investment income1
            0.83            0.80            0.87            0.93            0.95   
Net realized and unrealized gain (loss)
           (1.55 )           1.77            (0.33 )           1.28            (0.47 )  
Dividends to AMPS shareholders from net investment income
           —             —             (0.06 )           (0.06 )           (0.19 )  
Net increase (decrease) from investment operations
           (0.72 )           2.57            0.48            2.15            0.29   
Dividends to Common Shareholders from net investment income2
            (0.83 )           (0.83 )           (0.83 )           (0.82 )           (0.70 )  
Net asset value, end of year
         $ 13.57         $ 15.12         $ 13.38         $ 13.73         $ 12.40   
Market price, end of year
        $ 13.33         $ 15.61         $ 12.83         $ 13.67         $ 12.85   
                                             
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           (5.08 )%         19.86 %           3.92 %           17.75 %           3.27 %  
Based on market price
           (9.69 )%         29.05 %           0.09 %           13.13 %           (1.66 )%
                                             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
            1.66 %           1.96 %           1.52 %4         1.25 %4         1.46 %4
Total expenses after fees waived and paid indirectly
           1.66 %           1.96 %           1.52 %4         1.24 %4         1.42 %4
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5
            1.03 %           1.58 %6         1.43 %4         1.22 %4         1.36 %4
Net investment income
            5.53 %           5.62 %           6.62 %4         6.99 %4         8.16 %4
Dividends to AMPS shareholders
            —             —             0.36 %           0.44 %           1.61 %  
Net investment income to Common Shareholders
           5.53 %           5.62 %           6.26 %           6.56 %           6.55 %  
                                             
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)
         $    62,167         $    69,071         $    61,086         $    62,618         $    56,449   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
            —             —             —          $ 38,800         $ 38,800   
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
         $ 37,300         $ 37,300         $ 37,300            —             —    
Portfolio turnover
           16 %           26 %           16 %           25 %           39 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
           —             —             —          $ 65,350         $ 61,375   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
         $ 266,667         $ 285,177         $ 263,770            —             —    
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends and distributions.
4   Do not reflect the effect of dividends to AMPS shareholders.
5   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
6   For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.14%.

See Notes to Financial Statements.

42 ANNUAL REPORT JULY 31, 2013
 
  
Financial Highlights  BlackRock MuniYield California Fund, Inc. (MYC)

         Year Ended July 31,
    
         2013      2012      2011      2010      2009
Per Share Operating Performance
Net asset value, beginning of year
         $ 16.97         $ 14.38         $ 14.76         $ 13.47         $ 13.71   
Net investment income1
            0.91            0.94            0.95            0.94            0.91   
Net realized and unrealized gain (loss)
           (1.97 )           2.60            (0.37 )           1.21            (0.33 )  
Dividends to AMPS shareholders from net investment income
           —             —             (0.03 )           (0.03 )           (0.13 )  
Net increase (decrease) from investment operations
           (1.06 )           3.54            0.55            2.12            0.45   
Dividends to Common Shareholders from net investment income2
            (0.95 )           (0.95 )           (0.93 )           (0.83 )           (0.69 )  
Net asset value, end of year
         $ 14.96         $ 16.97         $ 14.38         $ 14.76         $ 13.47   
Market price, end of year
        $ 13.94         $ 17.31         $ 13.29         $ 14.44         $ 12.44   
                                             
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           (6.61 )%         25.45 %           4.28 %           16.59 %           4.64 %  
Based on market price
           (14.68 )%         38.46 %           (1.49 )%         23.51 %           1.37 %  
                                             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
            1.46 %           1.64 %           1.49 %4         1.19 %4         1.49 %4
Total expenses after fees waived
            1.45 %           1.64 %           1.49 %4         1.18 %4         1.47 %4
Total expenses after fees waived and excluding interest expense, fees, and amortization of offering costs5
            0.92 %           1.21 %6         1.16 %4         0.99 %4         1.08 %4
Net investment income
            5.39 %           5.96 %           6.76 %4         6.53 %4         7.07 %4
Dividends to AMPS shareholders
            —             —             0.18 %           0.22 %           0.99 %  
Net investment income to Common Shareholders
           5.39 %           5.96 %           6.58 %           6.31 %           6.08 %  
                                             
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)
         $   319,144         $   361,341         $   306,280         $   314,326         $   286,805   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
            —             —             —          $ 105,950         $ 105,950   
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
         $ 105,900         $ 105,900         $ 105,900            —             —    
Portfolio turnover
           27 %           48 %           33 %           41 %           38 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
            —             —             —          $ 99,173         $ 92,679   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
         $ 401,364         $ 441,209         $ 389,216            —             —    
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends and distributions.
4   Do not reflect the effect of dividends to AMPS shareholders.
5   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
6   For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.97%.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 43
 
  
Financial Highlights  BlackRock MuniYield Investment Fund (MYF)

         Year Ended July 31,
    
         2013      2012      2011      2010      2009
Per Share Operating Performance
Net asset value, beginning of year
         $ 16.30         $ 13.71         $ 14.26         $ 12.95         $ 13.59   
Net investment income1
            0.94            0.93            0.97            0.96            0.96   
Net realized and unrealized gain (loss)
           (2.03 )           2.60            (0.58 )           1.18            (0.77 )  
Dividends to AMPS shareholders from net investment income
           —             —             (0.02 )           (0.02 )           (0.13 )  
Net increase (decrease) from investment operations
           (1.09 )           3.53            0.37            2.12            0.06   
Dividends to Common Shareholders from net investment income2
            (0.95 )           (0.94 )           (0.92 )           (0.81 )           (0.70 )  
Net asset value, end of year
         $ 14.26         $ 16.30         $ 13.71         $ 14.26         $ 12.95   
Market price, end of year
         $ 13.55         $ 16.52         $ 13.08         $ 14.36         $ 11.72   
                                             
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           (7.14 )%         26.55 %           2.97 %           17.12 %           1.93 %  
Based on market price
           (12.94 )%         34.44 %           (2.45 )%         30.32 %           5.26 %  
                                             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
            1.55 %           1.66 %           1.45 %4         1.26 %4         1.35 %4
Total expenses after fees waived
            1.55 %           1.66 %           1.45 %4         1.26 %4         1.34 %4
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs5
            0.97 %           1.22 %6         1.14 %4         1.02 %4         1.12 %4
Net investment income
            5.82 %           6.19 %           7.22 %4         6.92 %4         7.66 %4
Dividends to AMPS shareholders
            —             —             0.15 %           0.18 %           1.09 %  
Net investment income to Common Shareholders
           5.82 %           6.19 %           7.07 %           6.74 %           6.57 %  
                                             
Supplemental Data
Net assets applicable, end of year (000)
         $   194,317         $   221,778         $   186,127         $   193,270         $   175,610   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
            —             —             —          $ 59,475         $ 59,475   
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
        $ 59,400         $ 59,400         $ 59,400            —             —    
Portfolio turnover
           33 %           34 %           27 %           41 %           63 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
           —             —             —          $ 106,242         $ 98,819   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
         $ 427,133         $ 473,363         $ 413,346            —             —    
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends and distributions.
4   Do not reflect the effect of dividends to AMPS shareholders.
5   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
6   For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.99%.

See Notes to Financial Statements.

44 ANNUAL REPORT JULY 31, 2013
 
  
Financial Highlights  BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

         Year Ended July 31,
    
         2013      2012      2011      2010      2009
Per Share Operating Performance
Net asset value, beginning of year
         $ 16.92         $ 14.84         $ 15.24         $ 14.13         $ 14.36   
Net investment income1
            0.89            0.86            0.92            1.00            0.98   
Net realized and unrealized gain (loss)
           (1.94 )           2.11            (0.41 )           1.00            (0.34 )  
Distributions to VRDP Shareholders from net realized gain
            (0.00 )2           —             —             —             —    
Dividends to AMPS shareholders from net investment income
           —             —             (0.03 )           (0.04 )           (0.15 )  
Net increase (decrease) from investment operations
           (1.05 )           2.97            0.48            1.96            0.49   
Dividends and distributions to Common Shareholders from:3
                                                                                                     
Net investment income
           (0.89 )           (0.89 )           (0.88 )           (0.85 )           (0.72 )  
Net realized gain
            (0.06 )           —             —             —             —    
Total dividends and distributions
            (0.95 )           (0.89 )           (0.88 )           (0.85 )           (0.72 )  
Net asset value, end of year
         $ 14.92         $ 16.92         $ 14.84         $ 15.24         $ 14.13   
Market price, end of year
        $ 13.74         $ 17.07         $ 13.53         $ 15.19         $ 13.49   
                                             
Total Investment Return Applicable to Common Shareholders4
Based on net asset value
           (6.51 )%         20.72 %           3.55 %           14.34 %           4.50 %  
Based on market price
           (14.66 )%         33.59 %           (5.28 )%         19.38 %           5.96 %  
                                             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
            1.48 %           1.61 %           1.26 %5         1.01 %5         1.15 %5
Total expenses after fees waived
            1.48 %           1.60 %           1.25 %5         1.00 %5         1.14 %5
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs6
            0.92 %           1.28 %7         1.14 %5         0.98 %5         1.05 %5
Net investment income
            5.32 %           5.41 %           6.26 %5         6.71 %5         7.21 %5
Dividends to AMPS shareholders
            —             —             0.23 %           0.30 %           1.12 %  
Net investment income to Common Shareholders
           5.32 %           5.41 %           6.03 %           6.41 %           6.09 %  
                                             
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)
         $   213,099         $   240,759         $   211,121         $   216,433         $   200,740   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
            —             —             —          $ 102,200         $ 102,200   
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
         $ 102,200         $ 102,200         $ 102,200            —             —    
Portfolio turnover
           7 %           23 %           18 %           15 %           21 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
            —             —             —          $ 77,946         $ 74,107   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
         $ 308,511         $ 335,577         $ 306,576            —             —    
1   Based on average Common Shares outstanding.
2   Amount is greater than $(0.00) per share.
3   Dividends and distributions are determined in accordance with federal income tax regulations.
4   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends and distributions.
5   Do not reflect the effect of dividends to AMPS shareholders.
6   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
7   For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.93%.

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2013 45
 
  
Notes to Financial Statements 

1. Organization:

BlackRock Muni New York Intermediate Duration Fund, Inc. (“MNE”), BlackRock MuniYield Arizona Fund, Inc. (“MZA”), BlackRock MuniYield California Fund, Inc. (“MYC”), BlackRock MuniYield Investment Fund (“MYF”) and BlackRock MuniYield New Jersey Fund, Inc. (“MYJ”) (collectively, the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. MNE, MZA, MYC and MYJ are organized as Maryland corporations. MYF is organized as a Massachusetts business trust. The Board of Directors and the Board of Trustees of the Funds are collectively referred to throughout this report as the “Board of Trustees” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors”. The Funds determine, and make available for publication the NAVs of their Common Shares on a daily basis.

2. Significant Accounting Policies:

The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds:

Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid price. If no bid price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principals of fair value measurement which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and is adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Fund either deliver collateral or segregate assets in connection with certain investments (e.g., TOBs and financial futures contracts), each Fund will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, a fund engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

46 ANNUAL REPORT JULY 31, 2013
 
  
Notes to Financial Statements (continued) 

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 9.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four years ended July 31, 2013. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact, if any, of this guidance on the Funds’ financial statement disclosures.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the independent Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Deferred compensation liabilities are included in officer’s and directors’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Funds have an arrangement with the custodians whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

3. Securities and Other Investments:

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Funds leverage their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf of a fund, transfers municipal bonds into a trust (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the

ANNUAL REPORT JULY 31, 2013 47
 
  
Notes to Financial Statements (continued) 


participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.

The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be collapsed without the consent of a Fund, as the TOB Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a Termination Event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year ended July 31, 2013, no TOBs in which the Funds participated were terminated without the consent of the Trusts.

The cash received by the TOB from the sale of TOB Trust certificates, less transaction expenses, is paid to a Fund. The Fund typically invests the cash received in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of the Funds payable to the holder of the TOB Trust Certificates, as reported in Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

The Funds may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Fund invests in TOBS on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB on a recourse basis, the the Fund will typically enter into a reimbursement agreement with the Liquidity Provider where the Fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Fund investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably in proportion to their participation. The recourse TOB Trusts, if any, are identified in the Schedules of Investments.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds 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 shown as interest expense fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At July 31, 2013, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:
   
 Underlying
Municipal
Bonds
Transferred
to TOBs
    
 Liability for
TOB Trust
Certificates
    
 Range of
Interest
Rates
MNE
        $ 10,566,301         $ 5,537,752      
0.06% – 0.11%
MZA
        $ 6,934,313         $ 3,330,000      
0.06% – 0.07%
MYC
        $ 230,901,105         $ 116,774,796      
0.06% – 0.19%
MYF
        $ 157,033,356         $ 85,029,096      
0.06% – 0.34%
MYJ  
         $ 64,803,249         $ 39,555,492      
0.06% – 0.31%

For the year ended July 31, 2013, the Funds’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
   
 Average TOB
Trust Certificates
Outstanding
    
 Daily Weighted
Average
Interest Rate
MNE
        $ 6,206,561            0.67 %  
MZA
        $ 3,330,000            0.68 %  
MYC
        $ 116,416,075            0.66 %  
MYF
        $ 87,038,223            0.73 %  
MYJ  
         $ 32,948,271            0.75 %  

Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

4. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to economically hedge their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Funds purchase and/or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled

48 ANNUAL REPORT JULY 31, 2013
 
  
Notes to Financial Statements (continued) 


either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Upon entering into a financial futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Funds agree 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 Funds as unrealized appreciation or depreciation. When the contract is closed, the Funds record 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. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Options: The Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument 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 instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Funds enter into a closing transaction), the Funds realize 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 premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

The following is a summary of the Funds’ derivative financial instruments categorized by risk exposure:

The Effect of Derivative Financial Instruments in the Statements of Operations
Year Ended July 31, 2013
         Net Realized Gain (Loss) From
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
Interest rate contracts:
                                                                                                     
Financial futures contracts
        $ 59,654         $ 32,872         $ 535,022         $ 761,196         $ 828,513   
Options1
            (21,815 )           —             —             —             —    
Total
         $    37,839         $    32,872         $   535,022         $   761,196         $   828,513   
1   Options purchased are included in the net realized gain (loss) from investments.

For the year ended July 31, 2013, the average quarterly balance of outstanding derivative financial instruments were as follows:
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
Financial future contracts:
                                                                                                     
Average number of contracts sold
            12             5             75             52             56    
Average notional value of contracts sold
         $ 1,592,000         $   666,797         $ 9,950,000         $ 6,901,348         $ 7,501,465   
Options:
                                                                                                     
Average number of contracts purchased
           35 2           —             —             —             —    
Average notional value of contracts purchased
        $ 5,391 2           —             —             —             —    
2   Actual contract amount shown due to limited activity.

Counterparty Credit Risk: A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange traded purchased options and futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange traded futures with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent

ANNUAL REPORT JULY 31, 2013 49
 
  
Notes to Financial Statements (continued) 


or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the broker’s customers, potentially resulting in losses to the Funds.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes of BlackRock, Inc. (“BlackRock”).

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. 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 each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:

MNE
           0.55 %   
MZA
           0.50 %  
MYC
           0.50 %  
MYF
           0.50 %  
MYJ
           0.50 %  

Average daily net assets are the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investment in other affiliated investment companies, if any. These amounts waived or reimbursed are shown as fees waived by Manager in the Statements of Operations.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

Certain officers and/or Directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Officer and Directors in the Statements of Operations.

The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is solely due to having a common investment advisor, common officers, or common trustees. For the year ended July 31, 2013, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:
   
 Purchases
    
 Sales
MYC
        $    325,391         $   4,423,911   
MYF
           —          $ 1,171,724   

6. Purchases and Sales:

Purchases and sales of investments, excluding short-term securities for the year ended July 31, 2013, were as follows:
   
 Purchases
    
 Sales
MNE
        $ 21,077,271         $ 22,903,602   
MZA
        $ 18,115,615         $ 16,701,692   
MYC
        $ 153,774,388         $ 152,706,457   
MYF
        $ 120,268,975         $ 118,874,719   
MYJ
        $ 38,812,485         $ 26,017,806   

7. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of July 31, 2013 attributable to amortization methods on fixed income securities and non-deductible expenses were reclassified to the following accounts:
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
Paid-in Capital
         $ (22,400 )        $ (5,562 )        $ (7,952 )        $ (7,220 )        $ (8,997 )  
Undistributed net investment income
        $      22,391         $       5,553         $       9,604         $      14,559         $       8,997   
Accumulated net realized loss
        $ 9          $ 9          $ (1,652 )        $ (7,339 )           —    

The tax character of distributions paid during the fiscal years ended July 31, 2013 and July 31, 2012 was as follows:
   
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
Tax-exempt income1
            7/31/13          $ 3,230,525          $ 4,218,308          $ 21,361,362          $ 13,550,755          $ 13,747,730   
 
            7/31/12             3,263,872             3,952,445             20,582,409             12,970,647             12,871,675   
Ordinary income2
            7/31/13             2,002             2,305             —              697              64,566   
 
            7/31/12             —              —              —              —              201,855   
Long-term capital gain3
            7/31/13             —             —             —             —             962,174   
Total
            7/31/13          $ 3,232,527         $ 4,220,613         $ 21,361,362         $ 13,551,452         $ 14,774,470   
 
            7/31/12          $   3,263,872         $  3,952,445         $  20,582,409         $  12,970,647         $   13,073,530   
1   The Funds designate these amounts paid during the fiscal year ended July 31, 2013, as exempt-interest dividends.
2   Ordinary income consists primarily of taxable income recognized from market discount. Additionally, all ordinary income distributions are comprised of interest related dividends for non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.
3   The Fund designates the amount paid during the fiscal year ended July 31, 2013, as capital gain dividends.
50 ANNUAL REPORT JULY 31, 2013
 
  
Notes to Financial Statements (continued) 

As of July 31, 2013, the tax components of accumulated net earnings were as follows:
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
Undistributed tax-exempt income
        $ 702,741         $ 889,888         $ 4,186,115         $ 3,185,090         $ 4,060,795   
Undistributed ordinary income
           4,402            326             —             117             137,279   
Undistributed long-term capital gains
            —             —             —             —             403,623   
Capital loss carryforwards
            (750,672 )           (884,995 )           (758,242 )           (7,205,475 )           —    
Net unrealized gains1
            1,638,863            1,401,455            15,515,106            10,819,162            2,907,965   
Qualified late-year losses2
            —             —             (1,800,213 )           (2,224,543 )           —    
Total
         $   1,595,334         $   1,406,674         $  17,142,766         $   4,574,351         $   7,509,662   
1   The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and discounts on fixed income securities, the deferral of compensation to directors and the treatment of residual interests in tender options bond trusts.
2   The Funds have elected to defer certain qualified late-year losses and recognize such losses in the year ending July 31, 2014.

As of July 31, 2013, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires July 31,
   
 MNE
    
 MZA
    
 MYC
    
 MYF
2018
        $ 750,672         $ 816,347         $ 758,242         $ 7,205,475   
2019
           —             68,648            —             —    
Total
         $     750,672         $     884,995         $     758,242         $   7,205,475   

During the year ended July 31, 2013, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

MNE
     
$     849,155
                  
MZA
     
$     256,306
                  
MYC
     
$  1,542,851
                  
MYF
      
$  2,828,295
                  

As of July 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
   
 MNE
    
 MZA
    
 MYC
    
 MYF
    
 MYJ
 
                                                                                                     
Tax cost
        $ 88,499,714         $ 97,352,053         $ 409,971,668         $ 247,190,822         $ 310,986,695   
Gross unrealized appreciation
        $ 3,700,994         $ 3,462,781         $ 21,577,940         $ 16,413,356         $ 10,865,336   
Gross unrealized depreciation
           (2,062,131 )           (2,061,326 )           (6,062,835 )           (5,594,196 )           (7,953,937 )  
Net unrealized appreciation
         $   1,638,863         $   1,401,455         $  15,515,105         $  10,819,160         $   2,911,399   

8. Concentration, Market and Credit Risk:

MNE, MZA, MYC and MYJ invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states or US territories.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

As of July 31, 2013, MZA and MYC invested a significant portion of their assets in securities in the county/city/special district/school district and utilities sectors. MYF invested a significant portion of its assets in securities in the county/city/special district/school district, transportation and utilities sectors. MNE invested a significant portion of its assets in securities in the transportation sector. MYJ invested a significant portion of its assets in securities in the state sector. Changes in economic conditions affecting the county/city/special district/school district, state and transportation sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

ANNUAL REPORT JULY 31, 2013 51
 
  
Notes to Financial Statements (continued) 

9. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares (unlimited number of shares for MYF), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares, including AMPS, without approval of Common Shareholders. MYF is authorized to issue 1 million Preferred Shares, including AMPS, par value $0.05 per share.

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
   
 Year Ended
July 31,
2013
    
 Year Ended
July 31,
2012
MNE
           3,405            —    
MZA
           12,706            4,161   
MYC
           37,874            —    
MYF
           20,747            25,531   
MYJ
           55,771            6,882   

Preferred Shares

Each Fund’s Preferred Shares rank prior to the Fund’s Common Shares to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on the Fund’s Common Shares or the repurchase of the Fund’s Common Shares if the Fund fails to maintain asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instrument, the Funds are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Funds fail to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instrument or comply with the basic maintenance amount requirement of the rating agencies then rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

MNE, MZA, MYC, MYF and MYJ (collectively, the “VRDP Funds”), have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “Securities Act”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. The VRDP Funds are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Funds are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.

The VRDP Shares outstanding as of the year ended July 31, 2013 were as follows:
   
 Issue
Date
    
 Shares
Issued
    
 Aggregate
Principal
    
 Maturity
Date
MNE
           9/15/11            296          $ 29,600,000            10/01/41   
MZA
           5/19/11            373          $ 37,300,000            6/01/41   
MYC
           5/19/11            1,059         $ 105,900,000            6/01/41   
MYF
           5/19/11            594          $ 59,400,000            6/01/41   
MYJ
           4/21/11            1,022         $ 102,200,000            5/01/41   

The VRDP Funds entered into a fee agreement with the liquidity provider that required a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreement between each of MZA, MYC, MYF and MYJ and the liquidity provider is scheduled to expire on July 9, 2015 unless renewed or terminated in advance.

The initial fee agreement between MNE and the liquidity provider was for a 364 day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated in advance. On November 29, 2012, MNE entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a two year term and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory tender of MNE’s VRDP Shares on November 28, 2012, which were successfully remarketed by the remarketing agent.

In the event the fee agreements are not renewed or are terminated in advance, and the VRDP Funds do not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. The VRDP Funds are required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, the VRDP Funds are required to begin to segregate liquid assets with the VRDP Funds’ custodian to fund the redemption. There is no assurance the VRDP Funds will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Each VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, each VRDP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, the VRDP Funds are required to redeem certain of their outstanding VRDP Shares if they fail to maintain certain asset coverage, basic maintenance amount or leverage requirements.

52 ANNUAL REPORT JULY 31, 2013
 
  
Notes to Financial Statements (continued) 

Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of the VRDP Funds. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of the VRDP Shares prior to the initial termination date of the fee agreement, the VRDP Funds must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

Dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2013 the VRDP Shares were assigned a long-term rating from Moody’s under its new ratings methodology as follows:
   
 Rating
MNE
           Aa2    
MZA
           Aa2    
MYC
           Aa2    
MYF
           Aa1    
MYJ  
            Aa2    

The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s, Fitch and/or S&P. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly related based upon either short-term rating. As of July 31, 2013, the short-term ratings of the liquidity provider and the VRDP Shares for MNE were P1, F1 and A1 as rated by Moody’s, Fitch and S&P, respectively, which is within the two highest rating categories. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories. The short-term ratings on the VRDP Shares for MZA, MYC, MYF and MYJ were withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period, as described below.

For financial reporting purposes, the VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

The VRDP Funds may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of the remarketable VRDP Shares that were tendered for remarketing during the year ended July 31, 2013 were successfully remarketed.

The annualized dividend rates for the VRDP Shares for the year ended July 31, 2013 were as follows:

MNE
           0.26 %  
MZA
           1.08 %  
MYC
           1.08 %  
MYF
           1.08 %  
MYJ  
            1.08 %  

On June 21, 2012, MZA, MYC, MYF and MYJ announced a special rate period for a three-year term ending June 24, 2015 with respect to their VRDP Shares. The liquidity and fee agreements remain in effect for the duration of the special rate period and the VRDP shares are still subject to mandatory redemption by the VRDP Funds on maturity date. The VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, MZA, MYC, MYF and MYJ are required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares. MZA, MYC, MYF and MYJ will not pay any liquidity and remarketing fees during the special rate period and instead will pay dividends monthly based on the sum of the SIFMA Municipal Swap Index and a percentage per annum based on the long-term ratings assigned to the VRDP Shares. The short-term ratings were withdrawn by Moody’s, Fitch and/or S&P. Short-term ratings may be re-assigned upon the termination of the special rate period when the VRDP Shares revert back to remarketable securities.

If MZA, MYC, MYF and MYJ redeem their VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch respectively, then such redemption is subject to a redemption premium (up to 3% of the liquidation preference) payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. After June 24, 2015, the holder of the VRDP Shares and MZA, MYC, MYF and MYJ may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

VRDP Shares issued and outstanding remained constant for the year ended July 31, 2013.

During the year ended July 31, 2012, MNE issued 296 VRDP Shares.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP Shares, which were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider, which were amortized over the

ANNUAL REPORT JULY 31, 2013 53
 
  
Notes to Financial Statements (concluded) 


life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

AMPS

The AMPS were redeemable at the option of MNE, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS were also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of MNE, as set forth in the Fund’s Articles Supplementary were not satisfied. From February 13, 2008 to the redemption date listed below, the AMPS of MNE failed to clear any of their auctions. A failed auction was not an event of default for MNE, but it had a negative impact on the liquidity of the AMPS. A failed auction occurs when there are more sellers of a fund’s AMPS than buyers.

As of July 31, 2013, the Funds did not have any AMPS outstanding.

During the year ended July 31, 2012, MNE announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:
   
 Series
    
 Redemption
Date
    
 Shares
Redeemed
    
 Aggregate
Principal
MNE
           F7             10/03/11            1,185         $ 29,625,000    

MNE financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares of $29,600,000 and the cash received from TOB transactions.

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Fund paid a net investment income dividend in the following amounts per share on September 3, 2013 to Common Shareholders of record on August 15, 2013:
   
 Common 
Dividend 
Per Share 
MNE
        $ 0.0625    
MZA
        $ 0.0695    
MYC
        $ 0.0790    
MYF
        $ 0.0790    
MYJ
        $ 0.0740    

Additionally, the Funds declared a net investment income dividend on September 3, 2013 payable to Common Shareholders of record on September 16, 2013 for the same amounts noted above.

The dividends declared on VRDP Shares for the period August 1, 2013 to August 31, 2013 for the Funds were as follows:
   
 Series
    
 Dividends 
Declared 
MNE
           W-7          $ 4,168    
MZA
           W-7          $ 33,917    
MYC
           W-7          $ 96,296    
MYF
           W-7          $ 54,013    
MYJ 
           W-7          $ 92,932    
54 ANNUAL REPORT JULY 31, 2013
 
  
Report of Independent Registered Public Accounting Firm 

To the Shareholders and Board of Trustees of BlackRock MuniYield Investment Fund and to the Shareholders and Board of Directors of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., and BlackRock MuniYield New Jersey Fund, Inc.:

We have audited the accompanying statements of assets and liabilities of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Investment Fund and BlackRock MuniYield New Jersey Fund, Inc. (collectively the “Funds”), including the schedules of investments, as of July 31, 2013, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for the each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2013, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock Muni New York Intermediate Duration Fund, Inc., BlackRock MuniYield Arizona Fund, Inc., BlackRock MuniYield California Fund, Inc., BlackRock MuniYield Investment Fund and BlackRock MuniYield New Jersey Fund, Inc., as of July 31, 2013, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
September 25, 2013

ANNUAL REPORT JULY 31, 2013 55
 
  
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements 

The Board of Directors or Trustees, as applicable, (each, a “Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of BlackRock Muni New York Intermediate Duration Fund, Inc. (“MNE”), BlackRock MuniYield Arizona Fund, Inc. (“MZA”), BlackRock MuniYield California Fund, Inc. (“MYC”), BlackRock MuniYield Investment Fund (“MYF”) and BlackRock MuniYield New Jersey Fund, Inc., (“MYJ” and together with MNE, MZA, MYC and MYF, each a “Fund,” and, collectively, the “Funds”) met in person on April 18, 2013 (the “April Meeting”) and June 4-5, 2013 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board of each Fund also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) among the Manager, BlackRock Investment Management, LLC (the “Sub-Advisor”), and its Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

Each Board consists of eleven individuals, nine of whom are not “interested persons” of such Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established six standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, an Executive Committee, and a Leverage Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee and the Leverage Committee, each of which also has one interested Board Member).

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Agreements on an annual basis. The Boards have four quarterly meetings per year, each extending over two days, and a fifth one-day meeting to consider specific information surrounding the consideration of renewing the Agreements. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Funds by BlackRock, its personnel and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services, risk oversight, compliance and assistance in meeting applicable legal and regulatory requirements.

The Boards, acting directly and through their respective committees, considered at each of their meetings, and from time to time as appropriate, factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards considered were: (a) investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over-performance or underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) Fund operating expenses and how BlackRock allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Funds’ investment objectives, policies and restrictions; (e) the Funds’ compliance with their Code of Ethics and other compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Funds’ valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; (l) BlackRock’s compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRock’s business.

The Boards have engaged in an ongoing strategic review with BlackRock of opportunities to consolidate funds and of BlackRock’s commitment to investment performance. In addition, the Boards requested and BlackRock provided an analysis of fair valuation and stale pricing policies. BlackRock also furnished information to the Boards in response to specific questions. These questions covered issues such as BlackRock’s profitability, investment performance and management fee levels. The Boards further considered the importance of: (i) organizational and structural variables to investment performance; (ii) rates of portfolio turnover; (iii) BlackRock’s performance accountability for portfolio managers; (iv) marketing support for the funds; (v) services provided to the Funds by BlackRock affiliates; and (vi) BlackRock’s oversight of relationships with third party service providers.

The Boards considered BlackRock’s efforts during the past year with regard to refinancing outstanding AMPS, as well as ongoing time and resources devoted to other forms of preferred shares and alternative leverage. As of the date of this report, the Funds have redeemed 100% of their outstanding AMPS.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with its independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April Meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses as compared with a peer group of funds as determined by Lipper (“Expense Peers”) and the investment performance of the Funds as compared with a peer group of funds as determined by Lipper1 and, where applicable, a customized peer group selected by BlackRock; (b) information on the profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (c) a general analysis

1   Lipper ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable.
56 ANNUAL REPORT JULY 31, 2013
 
  
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) 

provided by BlackRock concerning investment management fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as applicable; (d) review of non-management fees; (e) the existence, impact and sharing of potential economies of scale; (f) a summary of aggregate amounts paid by each Fund to BlackRock and (g) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.

At the April Meeting, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Boards’ year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting.

At the June Meeting, each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund, and the Sub-Advisory Agreement among the Manager, the Sub-Advisor, and its Fund, each for a one-year term ending June 30, 2014. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Funds and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Funds; (d) the Funds’ costs to investors compared to the costs of Expense Peers and performance compared to the relevant performance comparison as previously discussed; (e) economies of scale; (f) fall-out benefits to BlackRock as a result of its relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to securities lending, services related to the valuation and pricing of Fund portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Boards compared Fund performance to the performance of a comparable group of closed-end funds and/or the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its Fund’s portfolio management team discussing the Fund’s performance and the Fund’s investment objective, strategies and outlook.

The Boards considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and their Funds’ portfolio management teams; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards engaged in a review of BlackRock’s compensation structure with respect to their Funds’ portfolio management teams and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to advisory services, the Boards considered the quality of the administrative and other non-investment advisory services provided to the Funds. BlackRock and its affiliates provide the Funds with certain services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with the following administrative services including, among others: (i) preparing disclosure documents, such as the prospectus, the summary prospectus (as applicable) and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Boards in their consideration of strategic issues such as the merger or consolidation of certain closed-end funds; and (ix) performing other administrative functions necessary for the operation of the Funds, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, shareholder services, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board, including the Independent Board Members, also reviewed and considered the performance history of its Funds. In preparation for the April Meeting, the Boards worked with its independent legal counsel, BlackRock and Lipper to develop a template for, and was provided with reports independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with their review, each Board received and reviewed information regarding the investment performance, based on net asset value (NAV), of its Fund as compared to other funds in its applicable Lipper category and, where applicable, the customized peer group selected by BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds and periodically meets with Lipper representatives to review their methodology. Each Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of its Fund throughout the year.

ANNUAL REPORT JULY 31, 2013 57
 
  
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) 

The Board of MNE noted that MNE ranked in the second quartile against its Lipper Performance Universe Composite for each of the one-, three- and five-year periods reported. BlackRock believes that the Lipper Performance Universe Composite is an appropriate performance metric for MNE in that it measures a blend of total return and yield.

The Board of MZA noted that MZA ranked in the first quartile against its Customized Lipper Peer Group Composite for each of the one-, three- and five-year periods reported. BlackRock believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for MZA in that it measures a blend of total return and yield.

The Board of MYC Board noted that MYC ranked in the third, third and first quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for MYC in that it measures a blend of total return and yield. The Board of MYC and BlackRock reviewed and discussed the reasons for MYC’s underperformance during the one- and three-year periods compared to its Customized Lipper Peer Group Composite. MYC’s Board was informed that, among other things, MYC has historically been restricted from investing in non-investment grade securities. Consequently, under normal circumstances MYC typically invested in a greater degree of higher quality holdings relative to peers. In times of credit spread tightening, MYC typically did not benefit as much as peers with a high yield overweight. This factor also detracts from MYC’s ability to generate a higher income accrual. MYC’s investment guidelines have been updated, effective July 1, 2013, to allow MYC to invest up to 20% of its total assets in securities rated below investment grade at the time of purchase. Also, in past periods, MYC’s management has held a higher relative level of cash reserves in order to maintain a defensive posture during periods of defensive strategic posturing. This has served MYC well in protecting NAV, but did lead to underperformance in terms of relative yield accrual.

The Board of MYF noted that MYF ranked in the second, third and third quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for MYF in that it measures a blend of total return and yield. The Board of MYF noted MYF’s improved performance, relative to its peers, during the one-year period. The Board of MYF and BlackRock reviewed and discussed the reasons for MYF’s underperformance during the three- and five-year periods compared to its Customized Lipper Peer Group Composite. MYF’s Board was informed that, among other things, underperformance is attributed to MYF’s below market distribution yield for the three- and five-year periods. The continued challenge going forward for MYF is seeking ways to increase its yield component. One disadvantage MYF has versus its Customized Lipper Peer Group Composite is that its investment guidelines have historically not allowed it to purchase securities that are non-investment grade, which provides peer funds with additional yield. MYF’s investment guidelines have been updated, effective July 1, 2013, to allow MYF to invest up to 20% of its total assets in securities rated below investment grade at the time of purchase.

The Board of each of MYC and MYF and BlackRock also discussed BlackRock’s strategy for improving its respective Fund’s performance and BlackRock’s commitment to providing the resources necessary to assist its Fund’s portfolio managers and to improve its Fund’s performance.

The Board of MYJ Board noted that MYJ ranked in the third, second and second quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for MYJ in that it measures a blend of total return and yield. The Board of MYJ and BlackRock reviewed and discussed the reasons for MYJ’s underperformance during the one-year period and will monitor MYJ’s performance in the coming year.

The Boards noted that BlackRock has recently made, and continues to make, changes to the organization of BlackRock’s overall portfolio management structure designed to result in strengthened leadership teams.

C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: Each Board, including the Independent Board Members, reviewed its Fund’s contractual management fee rate compared with the other funds in its Lipper category. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared its Fund’s total net operating expense ratio, as well as actual management fee rate, to those of other funds in its Lipper category. The total net operating expense ratio and actual management fee rate both give effect to any expense reimbursements or fee waivers that benefit the funds. The Boards considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2012 compared to available aggregate profitability data provided for the prior two years. The Boards reviewed BlackRock’s profitability with respect to certain other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As a result, comparing profitability is difficult.

58 ANNUAL REPORT JULY 31, 2013
 
  
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded) 

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Boards reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Boards considered the cost of the services provided to the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management of the Funds and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of the Funds. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.

The Board of each of MNE, MZA, MYC, MYF and MYJ noted that its respective Fund’s contractual management fee rate ranked in the first quartile relative to the Fund’s Expense Peers.

D. Economies of Scale: Each Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Fund increase. Each Board also considered the extent to which its Fund benefits from such economies and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of the Fund.

Based on the Boards’ review and consideration of the issue, the Boards concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its advisory fee structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including securities lending and cash management services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that they had considered the investment by BlackRock’s funds in exchange traded funds (i.e., ETFs) without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

The Boards also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included completion of the refinancing of auction rate preferred securities; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; share repurchases and other support initiatives for certain BlackRock funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: continuing communications concerning the refinancing efforts related to auction rate preferred securities; sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

Each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund for a one-year term ending June 30, 2014, and the Sub-Advisory Agreement among the Manager, the Sub-Advisor, and its Fund for a one-year term ending June 30, 2014. Based upon its evaluation of all of the aforementioned factors in their totality, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Funds and their shareholders. In arriving at their decision to approve the Agreements, the Boards did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making these determinations. The contractual fee arrangements for the Funds reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

ANNUAL REPORT JULY 31, 2013 59
 
  
Automatic Dividend Reinvestment Plans 

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Fund’s shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After the Funds declare a dividend or determine to make a capital gain distribution, the Reinvestment Plan Agents will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Funds (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Fund’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan. However, each Fund reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in MNE that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. Participants in MZA, MYC, MYF and MYJ that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A., through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at 250 Royall Street, Canton, MA 02021.

60 ANNUAL REPORT JULY 31, 2013
 
  
Officers and Directors 

Name, Address
and Year of Birth		          Position(s)
Held with
Funds		      Length
of Time
Served as
a Director2		      Principal Occupation(s) During Past Five Years      Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen		      Public
Directorships
Independent Directors1
 
Richard E. Cavanagh
55 East 52nd Street
New York, NY 10055
1946
      
Chairman of
the Board
and Director
   
Since
2007
   
Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Director, Arch Chemical (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.
   
94 RICs consisting of
90 Portfolios
   
None
 
Karen P. Robards
55 East 52nd Street
New York, NY 10055
1950
      
Vice Chairperson of the Board, Chairperson of the Audit Committee
and Director
   
Since
2007
   
Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Investment Banker at Morgan Stanley from 1976 to 1987.
   
94 RICs consisting of
90 Portfolios
   
AtriCure, Inc.
(medical devices); Greenhill & Co., Inc.
 
Michael J. Castellano
55 East 52nd Street
New York, NY 10055
1946
      
Director and Member of the Audit Committee
   
Since
2011
   
Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012.
   
94 RICs consisting of
90 Portfolios
   
None
 
Frank J. Fabozzi
55 East 52nd Street
New York, NY 10055
1948
      
Director and Member of the Audit Committee
   
Since
2007
   
Editor of and Consultant for The Journal of Portfolio Management since 2006; Professor of Finance, EDHEC Business School since 2011; Professor in the Practice of Finance and Becton Fellow, Yale University School of Management from 2006 to 2011; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.
   
94 RICs consisting of
90 Portfolios
   
None
 
Kathleen F. Feldstein
55 East 52nd Street
New York, NY 10055
1941
      
Director
   
Since
2007
   
President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.
   
94 RICs consisting of
90 Portfolios
   
The McClatchy
Company
(publishing)
 
James T. Flynn
55 East 52nd Street
New York, NY 10055
1939
      
Director and Member of the Audit Committee
   
Since
2007
   
Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.
   
94 RICs consisting of
90 Portfolios
   
None
 
Jerrold B. Harris
55 East 52nd Street
New York, NY 10055
1942
      
Director
   
Since
2007
   
Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation from 2010 to 2012; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.
   
94 RICs consisting of
90 Portfolios
   
BlackRock Kelso
Capital Corp.
(business develop-
ment company)
 
R. Glenn Hubbard
55 East 52nd Street
New York, NY 10055
1958
      
Director
   
Since
2007
   
Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988.
   
94 RICs consisting of
90 Portfolios
   
ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)
ANNUAL REPORT JULY 31, 2013 61
 
  
Officers and Directors (continued) 
Name, Address
and Year of Birth		          Position(s)
Held with
Funds		      Length
of Time
Served as
a Director2		      Principal Occupation(s) During Past Five Years      Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen		      Public
Directorships
Independent Directors1 (concluded)
 
W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951
      
Director and Member of the Audit Committee
   
Since
2007
   
George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.
   
94 RICs consisting of
90 Portfolios
   
None
 
 
         
1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. In 2011, 2012, and 2013, the Board of Directors unanimously approved extending the mandatory retirement age for James T. Flynn and in 2013, the Board unanimously approved extending the retirement age for Kathleen F. Feldstein, in each case, by one additional year, which the Board believed would be in the best interest of shareholders. Mr. Flynn can serve until December 31 of the year in which he turns 75 and Ms. Feldstein can serve until December 31 of the year in which she turns 73. Mr. Flynn and Ms. Feldstein turn 75 and 73, respectively, in 2014.
 
         
2 Date shown is the earliest date a person has served for the Funds covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Directors as joining the Funds’ board in 2007, those Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.
 
                                                                                                     
Interested Directors3
 
Paul L. Audet
55 East 52nd Street
New York, NY 10055
1953
      
Director
   
Since
2011
   
Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.
   
155 RICs consisting of
282 Portfolios
   
None
 
Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947
      
Director
   
Since
2007
   
Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.
   
155 RICs consisting of
282 Portfolios
   
None
 
 
         
3 Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Funds based on his position with BlackRock and its affiliates as well as his ownership of BlackRock securities. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of two complexes of BlackRock registered open-end funds, the BlackRock Equity-Liquidity Complex and the BlackRock Equity-Bond Complex. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximum age limitation may be waived as to any Director by action of a majority of the Directors upon finding a good cause thereof.
62 ANNUAL REPORT JULY 31, 2013
 
  
Officers and Directors (concluded)  

Name, Address
and Year of Birth		          Position(s)
Held with
Funds		      Length of
Time Served		      Principal Occupation(s) During Past Five Years
Officers1
 
John M. Perlowski
55 East 52nd Street
New York, NY 10055
1964
      
President and Chief Executive Officer
   
Since
2011
   
Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
 
Anne Ackerley
55 East 52nd Street
New York, NY 10055
1962
      
Vice
President
   
Since
20072
   
Managing Director of BlackRock since 2000; Chief Marketing Officer of BlackRock since 2012; President and Chief Executive Officer of the BlackRock-advised funds from 2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group from 2009 to 2012; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.
 
Brendan Kyne
55 East 52nd Street
New York, NY 10055
1977
      
Vice
President
   
Since
2009
   
Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
 
Robert W. Crothers
55 East 52nd Street
New York, NY 10055
1981
      
Vice
President
   
Since
2012
   
Director of BlackRock since 2011; Vice President of BlackRock from 2008 to 2010; Associate of BlackRock from 2006 to 2007.
 
Neal Andrews
55 East 52nd Street
New York, NY 10055
1966
      
Chief
Financial
Officer
   
Since
2007
   
Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
 
Jay Fife
55 East 52nd Street
New York, NY 10055
1970
      
Treasurer
   
Since
2007
   
Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
 
Brian Kindelan
55 East 52nd Street
New York, NY 10055
1959
      
Chief Compliance Officer and
Anti-Money Laundering Officer
   
Since
2007
   
Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
 
Janey Ahn
55 East 52nd Street
New York, NY 10055
1975
      
Secretary
   
Since
2012
   
Director of BlackRock since 2009; Vice President of BlackRock from 2008 to 2009; Assistant Secretary of the Funds from 2008 to 2012; Associate at Willkie Farr & Gallagher LLP from 2006 to 2008.
 
         
1 Officers of the Funds serve at the pleasure of the Boards.
 
         
2 Ms. Ackerley was President and Chief Executive Officer from 2009 to 2011.

 
Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Investment Management, LLC
Princeton, NJ 08540

Custodians
State Street Bank and Trust Company3
Boston, MA 02110

The Bank of New York Mellon4
New York, NY 10286
      
Transfer Agent
Common Shares
Computershare Trust
Company, N.A.
Canton, MA 02021

VRDP Tender and Paying Agent
The Bank of New York Mellon
New York, NY 10289

VRDP Remarketing Agent
Barclays Capital, Inc.3
New York, NY 10019

Citigroup Global Markets Inc.4
New York, NY 10179
   
VRDP Liquidity Providers
Barclays Bank PLC3
New York, NY 10019

Citibank, N.A.4
New York, NY 10179

Accounting Agent
State Street Bank and
Trust Company
Boston, MA 02110

Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
   
Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY 10036

Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
3   For MNE.
4   For MZA, MYC, MYF and MYJ.
ANNUAL REPORT JULY 31, 2013 63
 
  
Additional Information 
 

Proxy Results

The Annual Meeting of Shareholders was held on July 30, 2013 for shareholders of record on June 3, 2013 to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.
         Paul L. Audet
     Michael J. Castellano
     Richard E. Cavanagh
   
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
MNE
            3,487,925            108,114            0             3,487,925            108,114            0             3,463,513            132,526            0    
MZA
            4,133,418            77,630            0             4,133,661            77,387            0             4,126,051            84,997            0    
MYC
            17,195,742            496,972            0             17,131,529            561,185            0             17,193,169            499,545            0    
MYF
            11,498,829            495,843            0             11,523,997            470,675            0             11,523,281            471,391            0    
MYJ
            12,530,253            191,133            0             12,517,735            203,651            0             12,515,405            205,981            0    
         Frank J. Fabozzi1
     Kathleen F. Feldstein
     James T. Flynn
   
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
MNE
            296             0             0             3,345,399            250,640            0             3,369,566            226,473            0    
MZA
            373             0             0             4,035,963            175,085            0             4,097,265            113,783            0    
MYC
            1,059            0             0             17,142,995            549,719            0             17,176,686            516,028            0    
MYF
            594             0             0             11,495,059            499,613            0             11,483,088            511,584            0    
MYJ
            1,022            0             0             12,478,158            243,228            0             12,500,594            220,792            0    
         Henry Gabbay
     Jerrold B. Harris
     R. Glenn Hubbard
   
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
MNE
            3,487,925            108,114            0             3,378,988            217,051            0             3,463,513            132,526            0    
MZA
            4,131,320            79,728            0             4,129,595            81,453            0             4,132,236            78,812            0    
MYC
            17,170,462            522,252            0             17,126,077            566,637            0             17,200,057            492,657            0    
MYF
            11,515,642            479,030            0             11,479,768            514,904            0             11,496,414            498,258            0    
MYJ
            12,521,497            199,889            0             12,534,015            187,371            0             12,494,061            227,325            0    
         W. Carl Kester1
     Karen P. Robards
   
 Votes For
    
 Votes
Withheld
    
 Abstain
    
 Votes For
    
 Votes
Withheld
    
 Abstain
MNE
            296             0             0             3,487,312            108,727            0    
MZA
            373             0             0             4,073,051            137,997            0    
MYC
            1,059            0             0             17,144,925            547,789            0    
MYF
            594             0             0             11,499,953            494,719            0    
MYJ
            1,022            0             0             12,535,520            185,866            0    

1Voted on by holders of Preferred Shares only.

64 ANNUAL REPORT JULY 31, 2013
 
  
Additional Information (continued)
   

Fund Certification

Certain Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

  

Regulation Regarding Derivatives

Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if the fund markets itself as providing investment exposure to such instruments. To the extent a Fund uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of each Fund.

  

Dividend Policy

The Funds’ dividend policy is to distribute all or a portion of their net investment income to its 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 undistributed 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 Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

ANNUAL REPORT JULY 31, 2013 65
 
  
Additional Information (continued)  

General Information

The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

Effective July 1, 2013, each of MYC, MYF and MYJ no longer restricts its investments to long-term municipal obligations that are rated investment grade at time of purchase; instead each of MYC, MYF and MYJ may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at time of purchase. Below investment grade quality is regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Below investment grade securities, though high yielding, are characterized by high risk and subject to greater market fluctuations than certain lower yielding, higher rated securities. The value of high yield, lower quality bonds is affected by the creditworthiness of the issuers of the securities and by general economic and specific industry conditions. Issuers of high yield bonds are not as strong financially as those with higher credit ratings. These issuers are more vulnerable to financial setbacks and recession than more creditworthy issuers, which may impair their ability to make interest and principal payments. Below investment grade securities may also be less liquid than higher rated securities and more susceptible to economic downturns. It is likely that an economic recession could severely disrupt the market for such securities and may have an adverse impact on the value of such securities. In addition, it is likely that any such economic downturn could adversely affect the ability of the issuers of such securities to repay principal and pay interest thereon and increase the incidence of default for such securities.

Except as described above, during the period there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 882-0052.

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the 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 website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. Each Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

66 ANNUAL REPORT JULY 31, 2013
 
  
Additional Information (concluded) 
 

General Information (concluded)

Availability of Proxy Voting Policies and Procedures

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 (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

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 websites.

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.

ANNUAL REPORT JULY 31, 2013 67
 
  

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.


 
                     

MY5-7/13-AR
           
 		    
 
  

Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 

2
 

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

  (a) Audit Fees (b) Audit-Related Fees1 (c) Tax Fees2 (d) All Other Fees3
Entity Name Current Fiscal Year End Previous Fiscal Year End Current Fiscal Year End Previous Fiscal Year End Current Fiscal Year End Previous Fiscal Year End Current Fiscal Year End Previous Fiscal Year End
BlackRock MuniYield New Jersey Fund, Inc. $31,263 $31,000 $0 $0 $13,100 $12,600 $0 $0

 

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

 

  Current Fiscal Year End Previous Fiscal Year End
(b) Audit-Related Fees1 $0 $0
(c) Tax Fees2 $0 $0
(d) All Other Fees3 $2,865,000 $2,970,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services includes tax compliance, tax advice and tax planning.

3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

 

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g.,

3
 

 

unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:
Entity Name Current Fiscal Year End Previous Fiscal Year End
BlackRock MuniYield New Jersey Fund, Inc. $13,100 $12,600

 

Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,865,000 and $2,970,000, respectively, were billed by D&T to the Investment Adviser.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers 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.

 

Item 5 – Audit Committee of Listed Registrants

(a)The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Michael Castellano

Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

 

(b)Not Applicable

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

4
 


(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of July 31, 2013.

(a)(1)The registrant is managed by a team of investment professionals comprised of Robert Sneeden, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Sneeden, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2008, 2006 and 2006, respectively.
Portfolio Manager Biography
Theodore R. Jaeckel, Jr. Managing Director at BlackRock since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.
Walter O’Connor Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.
Robert Sneeden Director of BlackRock since 2006; Vice President of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 1998 to 2006.

 

5
 

(a)(2)As of July 31, 2013:
 

(ii) Number of Other Accounts Managed

and Assets by Account Type

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Theodore R. Jaeckel, Jr. 63 0 0 0 0 0
  $23.68 Billion $0 $0 $0 $0 $0
Walter O’Connor 63 0 0 0 0 0
  $23.68 Billion $0 $0 $0 $0 $0
Robert Sneeden 11 0 0 0 0 0
  $1.74 Billion $0 $0 $0 $0 $0
(iv)Potential Material Conflicts of Interest

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund.  In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information.  Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  It should also be noted that a portfolio manager may be managing certain hedge fund and/or long only accounts, or may be part of a team managing certain hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of the Fund are not entitled to receive a portion of incentive fees of other accounts.

 

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.  When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties.  BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account

6
 

receiving preferential treatment.  To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

 

(a)(3)As of July 31, 2013:

Portfolio Manager Compensation Overview

 

 BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

 

Base Compensation.

 

Generally, portfolio managers receive base compensation based on their position with BlackRock, Inc.

 

Discretionary Incentive Compensation.

 

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock.  In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured.  Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks.  Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are:

 

Portfolio Manager Benchmark
Theodore R. Jaeckel, Jr. A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification, Lipper Closed-End General Bond Fund classification, subset of Lipper Closed-End High Quality/Insured Muni Debt Leveraged Fund classification, subset of Lipper Closed-End Other Single State High Quality/Insured Muni Fund classification).

Walter O’Connor

 

 A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poor's Municipal Bond Index), certain customized indices and certain fund industry peer groups.
Robert Sneeden A combination of peer based fund classifications or subsets thereof (e.g., a subset of Lipper High Quality/Insured Muni Debt Leveraged Fund classification, a subset of Lipper Closed-End General & Ins. Muni Debt (Leveraged) Fund classification, a subset of Lipper Closed-End Other States Municipal Debt Funds, a subset of Lipper Closed-End New Jersey Municipal Debt Funds).

 

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Distribution of Discretionary Incentive Compensation

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting, will be settled in BlackRock, Inc. common stock. Typically, the cash portion of the discretionary incentive compensation, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. Providing a portion of discretionary incentive compensation in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results.

 

Long-Term Incentive Plan Awards — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have unvested long-term incentive awards.

 

Deferred Compensation Program — A portion of the compensation paid to eligible United States-based BlackRock employees may be voluntarily deferred at their election for defined periods of time into an account that tracks the performance of certain of the firm’s investment products. Any portfolio manager who is either a managing director or director at BlackRock is eligible to participate in the deferred compensation program.

 

Other Compensation Benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

 

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($255,000 for 2013).  The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own

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contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65.  The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the Purchase Date.  All of the eligible portfolio managers are eligible to participate in these plans.

 

 

(a)(4)Beneficial Ownership of Securities – As of July 31, 2013.
Portfolio Manager Dollar Range of Equity Securities
of the Fund Beneficially Owned
Theodore R. Jaeckel, Jr. None
Walter O’Connor None
Robert Sneeden None

(b) Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(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 Exchange Act of 1934, as amended.

(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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

(a)(1) – Code of Ethics – See Item 2
(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

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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 New Jersey Fund, Inc.

 

  By:  /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield New Jersey Fund, Inc.

 

Date: October 2, 2013

 

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/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield New Jersey Fund, Inc.

 

Date: October 2, 2013

 

  By:  /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield New Jersey Fund, Inc.

 

Date: October 2, 2013

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