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 811-6501
Name of Fund: MuniYield Michigan Insured Fund II, 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, MuniYield Michigan Insured Fund II, 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: 05/01/05 - 07/31/05
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 142.4% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,516
2,000 Allegan, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (d) 2,110
Anchor Bay, Michigan, School District, GO (School Building and Site) (c)(f):
2,000 Series I, 6% due 5/01/2009 2,200
3,165 Series II, 5.75% due 5/01/2010 3,507
2,150 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,359
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,091
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,150
2,420 Delta County, Michigan, Economic Development Corporation, Environmental Improvement
Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2012 (f) 2,805
Detroit, Michigan, City School District (School Building and Site Improvement), GO,
Series A (c)(f):
2,000 5% due 5/01/2013 2,184
1,480 5.375% due 5/01/2013 1,653
Detroit, Michigan, Water Supply System Revenue Bonds:
1,000 DRIVERS, Series 200, 8.856% due 7/01/2011 (c)(f)(h) 1,261
4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,805
2,000 Series B, 5.25% due 7/01/2032 (e) 2,140
4,400 Series B, 5% due 7/01/2034 (e) 4,596
2,500 Dickinson County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (International Paper Company Project), Series A,
5.75% due 6/01/2016 2,757
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds,
5.80% due 11/01/2024 (g) 2,283
East Grand Rapids, Michigan, Public School District, GO (d)(f):
1,610 5.75% due 5/01/2009 1,757
6,300 6% due 5/01/2009 6,929
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured Fund II, 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
GO General Obligation Bonds
HDA Housing Development Authority
RIB Residual Interest Bonds
S/F Single-Family
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2005 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d):
(concluded) $ 2,000 5.25% due 5/01/2023 $ 2,171
1,000 5% due 5/01/2026 1,055
1,250 5% due 5/01/2029 1,314
Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A (g):
385 5.375% due 7/01/2020 396
775 6% due 7/01/2020 841
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,891
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due
5/01/2028 (c) 3,840
Grand Blanc, Michigan, Community Schools, GO (c):
1,000 5.625% due 5/01/2017 1,112
1,000 5.625% due 5/01/2018 1,111
1,100 5.625% due 5/01/2019 1,222
Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a):
1,340 5.50% due 10/01/2018 1,491
320 5.50% due 10/01/2019 356
1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and Improvement
Bonds, Series A, 5.50% due 1/01/2022 (c) 1,734
225 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding,
5% due 5/01/2034 (c) 236
4,500 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 5,036
1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due
11/01/2011 (e)(f) 1,427
2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,191
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 2,796
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,340
7,550 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding
Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (e) 7,975
3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A,
5.50% due 7/15/2011 (e)(f) 3,342
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,577
1,455 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due
5/01/2034 (c) 1,529
1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Hillsdale College Project), 5% due 3/01/2035 1,158
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding
Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,062
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for
Creative Studies):
550 5.85% due 12/01/2022 568
1,000 5.90% due 12/01/2027 1,029
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT,
Series XVII-B, 5.40% due 6/01/2018 (a) 3,108
Michigan State Building Authority Revenue Bonds:
1,185 (Facilities Program), Series II, 4.67%* due 10/15/2009 (a)(b) 1,026
1,675 (Facilities Program), Series II, 4.77%* due 10/15/2010 (a)(b) 1,390
2,675 GO, RIB, Series 481, 8.41% due 4/15/2009 (e)(h) 3,140
Michigan State Building Authority, Revenue Refunding Bonds:
2,000 (Facilities Program), Series II, 5% due 10/15/2029 (e) 2,097
3,500 RIB, Series 517X, 8.41% due 10/15/2010 (d)(h) 4,244
Michigan State, COP:
3,870 5.50% due 6/01/2027 (a) 4,174
5,380 RIB, Series 530, 8.91% due 9/01/2011 (e)(h) 6,620
1,500 Michigan State Comprehensive Transportation, Revenue Refunding Bonds, Series A, 5.50%
due 11/01/2018 (d) 1,656
635 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (e) 647
115 Michigan State, HDA, Revenue Refunding Bonds, AMT, Series B, 5.50% due 6/01/2030 (e) 120
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,081
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,386
1,250 (Sparrow Obligation Group), 5.625% due 11/15/2031 1,320
2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,056
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
5,180 5% due 11/15/2036 5,417
2,500 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (f) 2,805
8,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 8,977
3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,238
3,215 (Mercy Health Services), Series X, 6% due 8/15/2014 (e) 3,540
1,000 (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (e) 1,097
2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2029 (e) 2,163
5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 6,175
1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,060
3,450 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 3,639
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
8,000 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 8,486
2,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,340
3,200 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,356
1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,482
5,000 RIB, Series 382, 10.16% due 9/01/2025 (e)(h) 5,229
6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue
Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 8,562
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site,
GO, 5.50% due 11/01/2012 (d)(f) 1,121
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Development Area Number 3), 5.375% due 6/01/2017 (g) 1,053
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,055
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due 5/01/2018 (e) 2,097
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,637
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c):
1,450 5% due 7/01/2024 1,536
1,000 5% due 7/01/2034 1,049
6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 10.16% due 8/01/2024 (a)(h) 7,900
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,937
Southfield, Michigan, Public Schools, School Building and Site, GO, Series A (d):
1,950 5.25% due 5/01/2027 2,103
1,000 5% due 5/01/2029 1,051
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,051
2,015 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,126
1,000 Tecumseh, Michigan, Public Schools, GO, Refunding, 5.125% due 5/01/2030 (c) 1,065
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne
County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,875
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (e) 1,231
Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne
County Airport), AMT (e):
4,475 5.25% due 12/01/2025 4,780
3,700 5.25% due 12/01/2026 3,946
4,000 5% due 12/01/2034 4,147
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,398
Puerto Rico - 3.9% Puerto Rico Commonwealth, Infrastructure Financing Authority, Special Tax and Capital
Appreciation Revenue Bonds, Series A:
4,600 4.68%* due 7/01/2031 (c) 1,386
11,700 4.657%* due 7/01/2036 (a) 2,769
2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R,
Series 16 HH, 8.804% due 7/01/2013 (d)(h) 2,817
Total Municipal Bonds (Cost - $243,042) - 146.3% 263,664
Shares
Held Short-Term Securities
602 CMA Michigan Municipal Money Fund (i) 602
Total Short-Term Securities (Cost - $602) - 0.3% 602
Total Investments (Cost - $243,644**) - 146.6% 264,266
Other Assets Less Liabilities - 2.8% 4,968
Preferred Stock, at Redemption Value - (49.4%) (89,018)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 180,216
===========
* Represents a zero coupon bond; the interest rate shown reflects the effective yield at
the time of purchase by the Fund.
** The cost and unrealized appreciation (depreciation) of investments as of July 31, 2005,
as computed for federal income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 243,644
===============
Gross unrealized appreciation $ 20,976
Gross unrealized depreciation (354)
---------------
Net unrealized appreciation $ 20,622
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) ACA Insured.
(h) The rate disclosed is that currently in effect. This rate changes periodically
and inversely based upon prevailing market rates.
(i) Investments in companies to be an affiliate of the Fund, for purposes of
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 (3,564) $ 18
Forward interest rate swaps outstanding as of July 31, 2005 were as follows:
(in Thousands)
Notional Unrealized
Amount Appreciation
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.647%
Broker, JPMorgan Chase Bank
Expires October 2015 $ 13,500 $ 22
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 II, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer
MuniYield Michigan Insured Fund II, Inc.
Date: September 23, 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.,
Chief Executive Officer
MuniYield Michigan Insured Fund II, Inc.
Date: September 23, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer
MuniYield Michigan Insured Fund II, Inc.
Date: September 23, 2005