UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-7080
Name of Fund: MuniYield Michigan Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr.,
President, MuniYield Michigan Insured Fund, Inc., 800 Scudders
Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box
9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/05
Date of reporting period: 11/01/04 - 01/31/05
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of January 31, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 150.2%
Adrian, Michigan, City School District, GO (d):
$ 2,000 5% due 5/01/2029 $ 2,101
1,600 5% due 5/01/2034 1,672
1,000 Allegan, Michigan, Public School District, GO, 5.75% due 5/01/2030 (d) 1,112
1,000 Ann Arbor, Michigan, Public School District, School Building and Site, GO,
5% due 5/01/2027 1,053
Belding, Michigan, Area Schools, GO, Refunding (c):
785 6.05% due 5/01/2006 (e) 829
215 6.05% due 5/01/2021 227
1,000 Birmingham, Michigan, City School District, School Building and Site, GO,
5% due 11/01/2033 (d) 1,047
3,525 Central Michigan University, General Revenue Bonds, 5% due 10/01/2034 (a) 3,703
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.90% due 5/01/2019 (b) 1,118
1,000 Comstock Park, Michigan, Public Schools, GO, 5.75% due 5/01/2029 (c) 1,100
Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba):
1,500 AMT, Series B, 6.45% due 4/15/2023 1,685
2,000 Series A, 6.25% due 4/15/2027 2,282
1,000 Detroit, Michigan, City School District, GO, Series A, 5.50% due 5/01/2018 (d) 1,124
2,300 Detroit, Michigan, City School District, School Building and Site Improvement,
GO, Series A, 5.375% due 5/01/2024 (c) 2,573
Detroit, Michigan, GO (b):
1,400 5.50% due 4/01/2018 1,566
1,325 5.50% due 4/01/2020 1,482
2,705 Series B, 6% due 4/01/2010 (e) 3,117
Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, Senior Lien (d):
1,000 Series A, 5% due 7/01/2032 1,040
1,545 Series C, 5.25% due 7/01/2022 1,773
Detroit, Michigan, Water Supply System Revenue Bonds:
4,375 DRIVERS, Series 200, 9.35% due 7/01/2011 (c)(e)(g) 5,759
1,250 Senior Lien, Series A, 5.875% due 1/01/2010 (c)(e) 1,428
6,900 Senior Lien, Series A, 5% due 7/01/2034 (b) 7,174
14,790 Series B, 5.25% due 7/01/2032 (b) 15,838
3,970 Series B, 5% due 7/01/2034 (b) 4,130
1,415 Detroit, Michigan, Water Supply System Revenue Refunding Bonds, 6.25% due
7/01/2012 (c)(h) 1,606
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
HDA Housing Development Authority
GAN Grant Anticipation Notes
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of January 31, 2005 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan (concluded)
$3,900 Dickinson County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (International Paper Company Project),
Series A, 5.75% due 6/01/2016 $ 4,228
3,100 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding
Bonds, 5.80% due 11/01/2024 (i) 3,285
1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due
5/01/2009 (d)(e) 1,796
Eastern Michigan University, Revenue Bonds, Series B (c):
1,500 5.60% due 6/01/2025 1,651
1,310 5.625% due 6/01/2030 1,444
1,025 Eastern Michigan University, Revenue Refunding Bonds, 6% due 6/01/2020 (a) 1,173
Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d):
1,325 5.25% due 5/01/2020 1,476
1,675 5.25% due 5/01/2021 1,860
1,700 5% due 5/01/2026 1,803
3,600 5% due 5/01/2029 3,782
615 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds
(Hurley Medical Center), Series A, 5.375% due 7/01/2020 (i) 638
2,200 Fowlerville, Michigan, Community Schools, School District, GO, 5% due
5/01/2030 (c) 2,306
1,000 Frankenmuth, Michigan, School District, GO, 5.75% due 5/01/2010 (c)(e) 1,117
3,650 Gibraltar, Michigan, School District School Building and Site, GO, 5% due
5/01/2028 (c) 3,840
1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2020 (c) 1,253
Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a):
1,100 5.50% due 10/01/2019 1,244
1,500 5.50% due 10/01/2020 1,696
2,070 Grand Valley, Michigan, State University Revenue Bonds, 5.50% due 2/01/2018 (c) 2,381
8,425 Greater Detroit, Michigan, Resource Recovery Authority Revenue Bonds, DRIVERS,
Series 167, 10.344% due 12/13/2008 (a)(g) 10,497
Gull Lake, Michigan, Community School District, School Building and Site, GO (d):
2,000 5% due 5/01/2028 2,104
3,625 5% due 5/01/2030 3,800
4,775 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2034 (c) 4,990
9,325 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(e) 10,676
3,990 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 4,192
1,575 Jenison, Michigan, Public Schools, Building and Site, GO, 5.50% due 5/01/2019 (c) 1,771
3,305 Jonesville, Michigan, Community Schools, GO, 5.75% due 5/01/2029 (c) 3,634
6,850 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (b) 7,320
4,000 Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Butterworth Hospital), Series A, 7.25% due 1/15/2013 (b) 4,768
Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A:
1,000 5.50% due 1/15/2031 1,059
3,000 5.50% due 1/15/2031 (b) 3,222
1,510 Lansing, Michigan, Building Authority, GO, Series A, 5.375% due 6/01/2023 (b) 1,690
5,235 Lincoln Park, Michigan, School District, GO, 7% due 5/01/2006 (c)(e) 5,586
4,775 Livonia, Michigan, Public School District, GO (Building and Site), 5.75% due
5/01/2010 (c)(e) 5,409
2,425 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due
5/01/2034 (c) 2,539
2,500 Mendon, Michigan, Community Schools, School Building and Site, GO, 5% due
5/01/2034 (c) 2,613
2,250 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 2,382
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds
(College for Creative Studies):
1,235 5.85% due 12/01/2022 1,277
1,145 5.90% due 12/01/2027 1,176
2,500 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds,
AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 2,609
1,065 Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan Program),
Group A, 5.50% due 11/01/2020 (a) 1,183
Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government
Loan Program), Series A:
150 6.50% due 11/01/2012 (b) 150
1,000 6% due 12/01/2013 (c) 1,023
7,000 6.125% due 12/01/2018 (c) 7,159
Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program):
2,500 (Facilities Program), Series I, 5.50% due 10/15/2018 (b) 2,820
3,000 (Facilities Program), Series II, 5% due 10/15/2029 (b) 3,144
11,140 RIB, Series 517X, 8.89% due 10/15/2010 (d)(g) 14,110
Michigan State, COP (a):
3,000 5.40%** due 6/01/2022 1,353
3,000 5.50% due 6/01/2027 3,277
1,605 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (b) 1,639
2,690 Michigan State, HDA, Revenue Refunding Bonds, Series C, 5.90% due 12/01/2015 (f) 2,821
2,530 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 2,787
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
2,200 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 2,340
2,000 (Sparrow Obligation Group), 5.625% due 11/15/2031 2,105
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
2,715 (Ascension Health Credit), Series A, 5.75% due 11/15/2009 (b)(e) 3,075
12,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (b)(e) 13,791
2,500 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (b)(e) 2,887
4,805 (Mercy Health Services), Series T, 6.50% due 8/15/2013 (b) 5,279
2,000 (Mercy Health Services), Series X, 6% due 8/15/2014 (b) 2,249
2,200 (Mercy Health Services), Series X, 5.75% due 8/15/2019 (b) 2,457
4,930 (Mercy Mount Clemens), Series A, 6% due 5/15/2014 (b) 5,522
3,000 (Saint John Hospital), Series A, 6% due 5/15/2013 (a)(e)(h) 3,137
6,400 (Trinity Health), Series A, 6% due 12/01/2027 (a) 7,311
1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,067
5,255 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 5,502
2,800 Michigan State Revenue Bonds, GAN, Series B, 1.83% due 9/15/2008 (d) 2,800
5,000 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Ford Motor
Company Project), AMT, Series A, 6.55% due 10/01/2022 5,110
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
7,250 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (b) 7,690
6,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 7,229
3,300 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,455
2,175 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 2,382
5,750 RIB, Series 382, 10.64% due 9/01/2025 (b)(g) 6,238
4,300 Michigan State Strategic Fund, PCR, Refunding (General Motors Corp.), 6.20% due
9/01/2020 4,463
1,000 Michigan State Trunk Line, Revenue Refunding Bonds, 5.25% due 10/01/2021 (d) 1,105
15,000 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue
Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 20,123
1,000 Montrose Township, Michigan, School District, GO, 6.20% due 5/01/2017 (b) 1,224
1,830 Muskegon Heights, Michigan, Water System Revenue Bonds, Series A, 5.625% due
11/01/2025 (b) 2,031
235 Northview, Michigan, Public School District, GO, Refunding, 5.80% due
5/01/2021 (b) 247
1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90% due 5/01/2025 (c) 1,220
5,320 Orchard View, Michigan, Schools, School Building and Site, GO, 5% due
5/01/2029 (b) 5,557
4,835 Ostego, Michigan, Public Schools District, School Building and Site, GO, 5% due
5/01/2034 (d) 5,053
2,425 Oxford, Michigan, Area Community School District, GO, 5.50% due 5/01/2018 (d) 2,741
1,370 Pennfield, Michigan, School District, School Building and Site, GO, 5% due
5/01/2029 (c) 1,439
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site,
GO, 5.50% due 5/01/2020 (d) 1,132
3,905 Plymouth-Canton, Michigan, Community School District, GO, 5% due 5/01/2029 (c) 4,102
700 Pontiac, Michigan, Tax Increment Finance Authority, Tax Increment Revenue
Refunding Bonds (Development Area 2), 5.625% due 6/01/2022 (i) 746
1,425 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,512
1,800 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
5/01/2015 (c) 2,033
2,500 Saginaw, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Covenant
Medical Center), Series E, 5.625% due 7/01/2013 (b) 2,766
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c):
2,100 5% due 7/01/2024 2,250
1,445 5% due 7/01/2034 1,511
8,900 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 10.64% due 8/01/2024 (a)(g) 11,370
1,300 Southfield, Michigan, Library Building Authority, GO, 5.50% due 5/01/2018 (b) 1,442
Southfield, Michigan, Public Schools, School Building and Site, GO, Series A (d):
2,900 5.25% due 5/01/2027 3,152
3,500 5% due 5/01/2029 3,677
1,325 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due
5/01/2030 (c) 1,389
Sturgis, Michigan, Public School District, School Building and Site, GO:
1,900 5.50% due 5/01/2021 2,092
2,545 5.625% due 5/01/2030 2,797
1,000 Three Rivers, Michigan, Community Schools GO, 6% due 5/01/2006 (b)(e) 1,055
1,100 Waverly, Michigan, Community School, GO, 5.50% due 5/01/2010 (c)(e) 1,213
10,660 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan
Wayne County), AMT, Series A, 5.375% due 12/01/2015 (b) 11,408
1,750 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (b) 1,816
West Bloomfield, Michigan, School District, GO Refunding (c):
1,710 5.50% due 5/01/2017 1,923
1,225 5.50% due 5/01/2018 1,377
2,405 West Branch-Rose City, Michigan, Area School District, GO, 5.50% due
5/01/2024 (c) 2,629
6,075 Western Michigan University Revenue Bonds, 5% due 11/15/2035 (c) 6,343
1,600 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (b) 1,681
Puerto Rico - 3.5%
1,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts,
Class R, Series 16 HH, 9.333% due 7/01/2013 (d)(g) 1,625
3,790 Puerto Rico Municipal Finance Agency Revenue Bonds, Series A, 5% due
8/01/2027 (d) 4,003
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue
Bonds (e):
1,000 Series A, 5.375% due 8/01/2011 (b) 1,129
1,000 Series E, 5.70% due 2/01/2010 1,124
2,150 University of Puerto Rico, University Revenue Refunding Bonds, Series O, 5.375%
due 6/01/2030 (b) 2,189
Total Investments (Cost - $409,713*) - 153.7% 446,607
Other Assets Less Liabilities - 3.1% 9,064
Preferred Stock, at Redemption Value - (56.8%) (165,033)
----------
Net Assets Applicable to Common Stock - 100.0% $ 290,638
==========
*The cost and unrealized appreciation (depreciation) of investments
as of January 31, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 409,713
=========
Gross unrealized appreciation $ 37,015
Gross unrealized depreciation (121)
---------
Net unrealized appreciation $ 36,894
=========
**Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase of
the Fund.
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)FSA Insured.
(e)Prerefunded.
(f)FHA Insured.
(g)The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h)Escrowed to maturity.
(i)ACA Insured.
Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section
2(a)(3) of the Investment Company Act of 1940) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (7,190) $ 8
Forward interest rate swaps outstanding as of January 31, 2005 were
as follows:
(in Thousands)
Notional Unrealized
Amount Depreciation
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and pay
a fixed rate of 3.619%
Broker, JPMorgan Chase Bank
Expires February 2015 $ 10,100 $ (106)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and pay
a fixed rate of 3.565%
Broker, JPMorgan Chase Bank
Expires April 2015 $ 21,500 (53)
-------
Total $ (159)
=======
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed
such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MuniYield Michigan Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniYield Michigan Insured Fund, Inc.
Date: March 21, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: /s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.,
President
MuniYield Michigan Insured Fund, Inc.
Date: March 21, 2005
By: /s/ Donald C. Burke
Donald C. Burke,
Chief Financial Officer
MuniYield Michigan Insured Fund, Inc.
Date: March 21, 2005