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 811-7083
Name of Fund: BlackRock MuniYield Arizona Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock MuniYield Arizona 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: 10/31/2007
Date of reporting period: 11/01/06 - 01/31/07
Item 1 - Schedule of Investments
BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
Amount Municipal Bonds Value
Arizona - 128.1%
$ 1,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT,
Junior Sub-Series, 6.30% due 12/01/2008 $ 1,005
1,800 Arizona Health Facilities Authority, Hospital System Revenue Bonds (Phoenix Children's
Hospital), Series A, 6.125% due 11/15/2009 (h) 1,876
1,435 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625%
due 7/01/2020 1,575
3,285 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT, Junior
Subordinated Series B-1, 6.15% due 5/01/2029 3,491
1,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT,
Senior-Series A-1, 5.90% due 5/01/2024 1,061
1,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds (Baseball Training Facilities Project), 5%
due 7/01/2016 1,032
2,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds (Multi-Purpose Stadium Facility),
Series A, 5.375% due 7/01/2013 (g)(h) 2,173
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A, 5% due 7/01/2036 (c) 1,567
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Sub-Series B, 5% due 7/01/2036 (c) 1,571
750 Gladden Farms Community Facilities District, Arizona, GO, 5.50% due 7/15/2031 763
3,000 Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B, 5% due 8/01/2030 (g) 3,159
1,670 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125%
due 4/01/2007 (h) 1,709
735 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125%
due 4/01/2018 752
900 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 914
2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services),
Series A, 7% due 12/01/2016 (b)(g) 2,900
2,000 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 3-B,
5.25% due 8/01/2038 (d)(e) 2,075
Portfolio Abbreviations
To simplify the listings of BlackRock MuniYield Arizona 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
GO General Obligation Bonds
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments as of January 31, 2007 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Arizona (concluded)
$ 1,000 Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second Series, 5%
due 7/01/2025 (c) $ 1,059
1,485 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public Service Company
of New Mexico Project), Series A, 6.30% due 12/01/2026 1,519
655 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB, Series 511X,
7.12% due 7/01/2014 (a)(j) 743
1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012 2,071
500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding,
7.50% due 7/01/2010 (c) 558
1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle
Mountain), Series A, 5% due 7/01/2014 1,035
1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health Systems), Series A, 5.625% due 1/01/2010 (g)(h) 1,060
1,000 Nogales, Arizona, Municipal Development Authority, Inc., Revenue Bonds, 5% due 6/01/2030 (a) 1,050
4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2014 (c)(h) 4,973
3,325 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic Plaza Expansion
Project), Sub-Series A, 5% due 7/01/2035 (c) 3,495
600 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, AMT, Series B,
5.25% due 7/01/2032 (c) 624
2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien,
5.50% due 7/01/2020 (c) 2,686
2,000 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien, 5%
due 7/01/2029 (g) 2,111
745 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C, 6.70%
due 7/01/2021 800
995 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C, 6.75%
due 7/01/2031 1,066
1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project),
Series O, 5% due 7/01/2026 994
985 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project II),
Series A, 6.75% due 7/01/2021 1,060
1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625%
due 4/01/2014 (g) 1,023
3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50% due 7/01/2009 (c) 3,307
1,250 Pinal County, Arizona, COP, 5% due 12/01/2026 1,298
1,250 Pinal County, Arizona, COP, 5% due 12/01/2029 1,295
500 Pinal County, Arizona, IDA, Wastewater Revenue Bonds (San Manuel Facilities Project), AMT, 6.25%
due 6/01/2026 548
2,000 Queen Creek Improvement District Number 001, Arizona, Special Assessment Bonds, 5% due 1/01/2032 2,038
1,500 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue
Refunding Bonds, Series A, 5% due 1/01/2035 1,583
2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2011 (h) 2,460
1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center), 5%
due 12/01/2035 (i) 1,239
1,500 South Campus Group LLC, Arizona Student Housing Revenue Bonds (Arizona State University South
Campus Project), Series 2003, 5.625% due 9/01/2035 (g) 1,627
285 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds (Mortgage-Backed
Securities Program), AMT, Series A-1, 6% due 7/01/2021 (d)(e) 287
1,350 Tucson, Arizona, Airport Authority Incorporated, Subordinate Lien Revenue Bonds, AMT, 5%
due 12/01/2025 (g) 1,414
1,000 Tucson, Arizona, IDA, Joint S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 5.10%
due 7/01/2038 (d)(e) 1,030
1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project),
Series A, 6.125% due 7/01/2010 (h)(i) 1,082
1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,163
2,000 University of Arizona, COP, Series B, 5% due 6/01/2028 (a) 2,078
1,275 Vistancia Community Facilities District, Arizona, GO, 6.75% due 7/15/2022 1,420
750 Vistancia Community Facilities District, Arizona, GO, 5.75% due 7/15/2024 815
500 Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds, 6%
due 7/01/2030 528
2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center),
Series A, 6% due 8/01/2033 2,152
Guam - 1.6%
1,000 Guam Government Waterworks Authority, Water and Wastewater System, Revenue Refunding Bonds,
5.875% due 7/01/2035 1,069
Puerto Rico - 19.0%
1,700 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds,
Series G, 5% due 7/01/2033 1,753
2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,058
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II, 5.25% due 7/01/2031 1,053
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 1,566
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5% due 7/01/2032 (g) 1,049
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities
Revenue Bonds (Cogeneration Facility-AES Puerto Rico Project), AMT, 6.625% due 6/01/2026 1,623
2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I,
5.25% due 7/01/2033 2,120
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50%
due 8/01/2029 1,052
Total Municipal Bonds (Cost - $92,361) - 148.7% 96,257
Municipal Bonds Held in Trust (l)
Arizona - 19.8%
$ 8,670 Arizona State University Revenue Bonds, 5.50% due 7/01/2012 (c) 9,390
3,190 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, 5.50%
due 7/01/2015 (a) 3,401
Puerto Rico - 1.6%
1,000 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2016 (g) 1,063
Total Municipal Bonds Held in Trust (Cost - $13,473) - 21.4% 13,854
Shares
Held Short-Term Securities
825 CMA Arizona Municipal Money Fund, 2.99% (f)(k) 825
Total Short-Term Securities (Cost - $825) - 1.3% 825
Total Investments (Cost - $106,659*) - 171.4% 110,936
Other Assets Less Liabilities - 0.9% 542
Liability for Trust Certificates, Including Interest Expense Payable - (10.0%) (6,450)
Preferred Stock, at Redemption Value - (62.3%) (40,315)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 64,713
===========
* The cost and unrealized appreciation (depreciation) of investments as
of January 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 100,307
===================
Gross unrealized appreciation $ 4,291
Gross unrealized depreciation (92)
-------------------
Net unrealized appreciation $ 4,199
===================
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHLMC Collateralized.
(e) FNMA/GNMA Collateralized.
(f) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Arizona Municipal Money Fund (593) $10
(g) MBIA Insured.
(h) Prerefunded.
(i) Radian Insured.
(j) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(k) Represents the current yield as of January 31, 2007.
(l) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction.
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) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the
registrant was migrated to BlackRock's trading and compliance
monitoring systems, and various personnel changes occurred. In
conjunction with these business improvements, there were no changes in
the registrants internal control over financial reporting (as defined
in Rule 30a-3(d) under Act (17 CFR 270.30a-3(d)) that occurred during
the last fiscal half-year of the period covered by this report that
has materially affected, or is reasonably likely to affect, the
registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniYield Arizona Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniYield Arizona Fund, Inc.
Date: March 26, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniYield Arizona Fund, Inc.
Date: March 26, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
BlackRock MuniYield Arizona Fund, Inc.
Date: March 26, 2007