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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-06499

Name of Fund: BlackRock MuniYield California Fund, Inc. (MYC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
MuniYield California 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: 07/31/2010

Date of reporting period: 07/31/2010

Item 1 – Report to Stockholders




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)

July 31, 2010

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  9 
Derivative Financial Instruments  9 
Financial Statements:   
Schedules of Investments  10 
Statements of Assets and Liabilities  26 
Statements of Operations  27 
Statements of Changes in Net Assets  28 
Statements of Cash Flows  31 
Financial Highlights  32 
Notes to Financial Statements  37 
Report of Independent Registered Public Accounting Firm  44 
Important Tax Information  45 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  46 
Automatic Dividend Reinvestment Plan  50 
Officers and Directors  51 
Additional Information  54 

 

2 ANNUAL REPORT

JULY 31, 2010



Dear Shareholder

The global economy is continuing to slowly improve, with the United States and emerging markets leading the way; however global and US economic

statistics show that the pace of economic growth has trailed off in recent months. Market volatility has remained elevated over the past several months as

investors remain uncertain about the future direction of economic growth. The sovereign debt crisis in Europe, slowing growth in China and concerns over

the possibility that the United States and other developed markets are heading for a double-dip recession have all acted to depress investor sentiment. It

is our view that the recent soft patch of economic data is just that — a slowdown in the pace of recovery and not an indication that the economy is sliding

back into recession. In the United States, we expect to see slightly slower economic growth over the next several quarters; however, true double-dip

recessions are quite rare, and unless there is a major shock to the economy, we believe the recovery will continue.

Global equity markets have moved unevenly higher since bottoming out in early 2009 as investors were enticed by depressed valuations, improved corp-

orate earnings, and their desire for higher yields. Several significant downturns, however, have occurred — primarily as a result of mixed economic data and

concerns about the possibility of prolonged deflation (especially in Europe). As the period drew to a close, equity markets were staging a muted recovery.

On a 12-month basis global equities were still showing positive returns thanks to improving corporate revenues and profits and a reasonably strong macro

backdrop. From a geographic perspective, US equities have significantly outpaced their international counterparts over the past six and twelve months, as

the domestic economic recovery has been more pronounced and credit-related issues have held European markets down. Within the United States, smaller

cap stocks have outperformed large caps year-to-date.

In fixed income markets, yields have fluctuated significantly over the past year as economic data has been mixed. Over recent months, risk aversion and

credit issues kept interest rates low and US Treasury yields have fallen significantly as investors favored “safe haven” assets. As the period drew to a close,

higher-risk fixed income assets performed well due to strong earnings announcements and better-than-expected results on European bank stress tests.

Meanwhile, tax-exempt municipal bonds slightly outperformed US investment grade bonds on a 12-month basis, but underperformed year-to-date as

investors rotated to the relative safety of Treasuries.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with

the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an

“extended period.”

Against this backdrop, the major market averages posted the following returns:     
Total Returns as of July 31, 2010  6-month  12-month 
US large cap equities (S&P 500 Index)  3.61%  13.84% 
US small cap equities (Russell 2000 Index)  8.79  18.43 
International equities (MSCI Europe, Australasia, Far East Index)  (0.62)  6.26 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.06  0.16 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  7.67  8.34 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  4.85  8.91 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  4.06  9.15 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  6.72  23.69 

 

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

Although conditions are certainly better than they were a couple of years ago, global financial markets continue to face high volatility while questions about
the strength and sustainability of the recovery abound. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management
of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most
recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for
entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3



Fund Summary as of July 31, 2010

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 Common 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 fed-
eral 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 months ended July 31, 2010, the Fund returned 23.05% based on market price, and 17.67% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 20.59% based on market price, and 14.73% based
on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between
performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s outper-
formance relative to its peer group resulted more from its price appreciation than from its distributions, which were below the peer group average for the
period. The Fund’s concentration in longer-dated issues within its intermediate duration mandate benefited performance during the period. On average, the
Fund had a neutral-to-positive duration bias over the period. This positioning along with a low cash balance resulted in positive capital appreciation. Overall
the tax-exempt municipal market benefited from the Build America Bond Program, which made the taxable market accessible to municipal issuers. This
alleviated supply pressure in the tax-exempt space, which, coupled with increased investor demand for municipals, resulted in a favorable supply-demand
paradigm and strong performance. Many of the Fund’s holdings had depressed valuations resulting from their underperformance during dislocations in the
credit market, which expanded their upside potential as the market recovered. We purchased a number of new issues structured with the goal of creating
greater potential for price appreciation in response to declining interest rates. The Fund’s exposure to the health and housing sectors and Puerto Rico
credits also added to performance. Detracting from performance was the Fund’s exposure to the transportation sector and the short-term, high-grade,
pre-refunded sector.
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, 2010 ($13.54)1  5.14% 
Tax Equivalent Yield2  7.91% 
Current Monthly Distribution per Common Share3  $0.058 
Current Annualized Distribution per Common Share3  $0.696 
Leverage as of July 31, 20104  34% 

 

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 federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.0610 per share. The Yield on Closing Market Price, Current Monthly Distribution
per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to
change in the future.
4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the
Fund, including any assets attributable to Preferred 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 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/10  7/31/09  Change  High  Low 
Market Price  $13.54  $11.60  16.72%  $13.58  $11.54 
Net Asset Value  $14.50  $12.99  11.62%  $14.50  $12.98 
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:         

 

Sector Allocations     
  7/31/10  7/31/09 
County/City/Special District/School District  16%  17% 
Health  14  18 
Transportation  14  16 
State  13  14 
Housing  13  11 
Education  10  8 
Utilities  10  7 
Corporate  9  8 
Tobacco  1  1 

 

Credit Quality Allocations5     
  7/31/10  7/31/09 
AAA/Aaa  13%  9% 
AA/Aa  29  31 
A  31  31 
BBB/Baa  13  19 
BB/Ba  5  4 
CCC/Caa  3  2 
Not Rated6  6  4 

 

5 Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors Service
(“Moody’s”) ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of
these securities was $1,690,946, representing 2% and $1,646,778, representing
2%, respectively, of the Fund’s long-term investments.

4 ANNUAL REPORT

JULY 31, 2010



Fund Summary as of July 31, 2010

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 invest-
ment 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 months ended July 31, 2010, the Fund returned 13.13% based on market price, and 17.75% based on NAV. For the same period, the closed-
end Lipper Other States Municipal Debt Funds category posted an average return of 19.82% based on market price, and 14.58% based on NAV. All returns
reflect reinvestment of dividends. The Fund moved from a premium to NAV to a slight discount by period end, which accounts for the difference between
performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited
from its modestly positive positioning as interest rates declined over the period. The Fund’s exposure to the long-end of the yield curve made a positive
impact as prices of longer-dated bonds are most sensitive to declining interest rates. The Fund’s holdings of lower-rated issues also aided results as credit
quality spreads tightened over the period. Detracting from performance was the Fund’s exposure to zero-coupon bonds, which underperformed relative to
the broader municipal bond market as spreads in this sector generally widened. The Fund’s exposure to bonds with shorter maturities and bonds that price
to shorter calls also detracted as declining rates had less of an impact on the shorter end of 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 Amex  MZA 
Initial Offering Date  October 29, 1993 
Yield on Closing Market Price as of July 31, 2010 ($13.67)1  6.10% 
Tax Equivalent Yield2  9.38% 
Current Monthly Distribution per Common Share3  $0.0695 
Current Annualized Distribution per Common Share3  $0.8340 
Leverage as of July 31, 20104  39% 

 

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 federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/10  7/31/09  Change  High  Low 
Market Price  $13.67  $12.85  6.38%  $13.90  $12.06 
Net Asset Value  $13.73  $12.40  10.73%  $13.81  $12.38 
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:         

 

Sector Allocations     
  7/31/10  7/31/09 
County/City/Special District/School District  37%  25% 
Utilities  21  19 
State  14  17 
Education  9  12 
Health  8  13 
Housing  6  8 
Transportation  5  5 
Corporate    1 

 

Credit Quality Allocations5     
  7/31/10  7/31/09 
AAA/Aaa  27%  25% 
AA/Aa  31  22 
A  31  29 
BBB/Baa  8  19 
BB/Ba  1  1 
B  1  1 
Not Rated  1  36 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2009, the market value of these securities
was $1,515,561, representing 2% of the Fund’s long-term investments.

ANNUAL REPORT

JULY 31, 2010

5



Fund Summary as of July 31, 2010

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

Performance

For the 12 months ended July 31, 2010, the Fund returned 23.51% based on market price, and 16.59% based on NAV. For the same period, the closed-
end Lipper California Municipal Debt Funds category posted an average return of 22.90% based on market price, and 18.98% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
market price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s neutral duration stance during the
first half of the period hindered performance as interest rates were generally declining; however, shifting to a more aggressive duration stance in the second
half of the period proved beneficial. Declining interest rates also had a negative impact on short-call, high-coupon bonds held in the Fund during the first
half of the period. On the positive side, the Fund’s fully invested posture and relatively high degree of income accrual contributed to performance. The
tightening of credit quality spreads boosted performance of the lower-rated sectors of the portfolio. The Fund’s holdings in corporate-backed and health
municipals also aided performance.
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, 2010 ($14.44)1  5.98% 
Tax Equivalent Yield2  9.20% 
Current Monthly Distribution per Common Share3  $0.072 
Current Annualized Distribution per Common Share3  $0.864 
Leverage as of July 31, 20104  42% 

 

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 federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.0760 per share. The Yield on Closing Market Price, Current Monthly Distribution
per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to
change in the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  7/31/10  7/31/09  Change  High  Low 
Market Price  $14.44  $12.44  16.08%  $14.45  $12.32 
Net Asset Value  $14.76  $13.47  9.58%  $15.11  $13.45 
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:         

 

Sector Allocations     
  7/31/10  7/31/09 
County/City/Special District/School District  35%  35% 
Utilities  26  28 
Education  14  13 
Health  8  9 
Corporate  7  1 
State  6  7 
Transportation  3  6 
Housing  1  1 

 

Credit Quality Allocations5     
  7/31/10  7/31/09 
AAA/Aaa  27%  34% 
AA/Aa  46  30 
A  24  34 
BBB/Baa  2  1 
Not Rated6  1  1 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of
these securities were $2,416,739, representing 1% and $2,589,445, representing
1%, respectively, of the Fund’s long-term investments.

6 ANNUAL REPORT

JULY 31, 2010



Fund Summary as of July 31, 2010

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 objec-
tive 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.

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

Performance
For the 12 months ended July 31, 2010, the Fund returned 30.32% based on market price, and 17.12% based on NAV. For the same period, the closed-
end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 23.46% based on market price, and 19.89% based on NAV. All
returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between
performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s holdings of
Florida issues detracted from performance during the period as Florida underperformed the national market. The Fund continues to seek to reduce its expo-
sure to Florida, however, many of its Florida holdings have limited liquidity. On the positive side, the Fund held health and housing bonds with maturities of
20 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months.

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, 2010 ($14.36)1  6.27% 
Tax Equivalent Yield2  9.65% 
Current Monthly Distribution per Common Share3  $0.075 
Current Annualized Distribution per Common Share3  $0.900 
Leverage as of July 31, 20104  38% 

 

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 federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:           
  7/31/10  7/31/09  Change  High  Low 
Market Price  $14.36  $11.72  22.53%  $14.40  $11.64 
Net Asset Value  $14.26  $12.95  10.12%  $14.41  $12.93 
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:         

 

Sector Allocations     
  7/31/10  7/31/09 
County/City/Special District/School District  22%  29% 
Transportation  21  16 
Health  20  17 
Utilities  15  19 
State  7  9 
Education  7  5 
Corporate  4   
Housing  4  5 

 

Credit Quality Allocations5     
  7/31/10  7/31/09 
AAA/Aaa  16%  23% 
AA/Aa  52  39 
A  26  34 
BBB/Baa  4   
Not Rated6  2  4 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of
these securities were $635,244, representing 1% and $4,309,488, representing 2%,
respectively, of the Fund’s long-term investments.

ANNUAL REPORT

JULY 31, 2010

7



Fund Summary as of July 31, 2010

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 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.

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

Performance

For the 12 months ended July 31, 2010, the Fund returned 19.38% based on market price, and 14.34% based on NAV. For the same period, the closed-
end Lipper New Jersey Municipal Debt Funds category posted an average return of 20.66% based on market price, and 16.85% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
market price and performance based on NAV. The following discussion relates to performance based on NAV. Detracting from performance was the Fund’s
exposure to zero-coupon bonds, which underperformed as investors favored the liquidity of coupon bonds. The Fund’s exposure to Puerto Rico securities
also hindered performance as economic conditions in the Commonwealth worsened. On the positive side, the Fund held health and housing bonds with
maturities of 15 years and longer, which benefited performance as the municipal yield curve flattened over the last 12 months.

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, 2010 ($15.19)1  5.57% 
Tax Equivalent Yield2  8.57% 
Current Monthly Distribution per Common Share3  $0.0705 
Current Annualized Distribution per Common Share3  $0.8460 
Leverage as of July 31, 20104  34% 

 

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 federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.0715 per share. The Yield on Closing Market Price, Current Monthly Distribution
per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to
change in the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:           
  7/31/10  7/31/09  Change  High  Low 
Market Price  $15.19  $13.49  12.60%  $15.19  $13.49 
Net Asset Value  $15.24  $14.13  7.86%  $15.47  $14.11 
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:       

 

Sector Allocations     
  7/31/10  7/31/09 
State  26%  28% 
County/City/Special District/School District  15  16 
Transportation  14  12 
Education  12  11 
Health  12  13 
Housing  12  10 
Utilities  4  6 
Corporate  3  3 
Tobacco  2  1 

 

Credit Quality Allocations5     
  7/31/10  7/31/09 
AAA/Aaa  23%  27% 
AA/Aa  32  27 
A  31  31 
BBB/Baa  9  11 
BB/Ba  2   
Not Rated6  3  4 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010 and July 31, 2009, the market value of
these securities were $8,311,633, representing 3% and $9,156,088, representing
3%, respectively, of the Fund's long-term investments.

8 ANNUAL REPORT

JULY 31, 2010



The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of
their Common Shares. However, these objectives cannot be achieved in all
interest rate environments.

To leverage, the Funds issue Preferred Shares, which pay dividends at pre-
vailing short-term interest rates, and 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 will
be based on short-term interest rates, which normally will 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 Common Shareholders will benefit from the incremental net income.

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 securi-
ties purchased by the Fund with assets received from the Preferred Shares
issuance earn income based on long-term interest rates. In this case,
the dividends paid to Preferred Shareholders are significantly lower than
the income earned on the Fund’s long-term investments, and therefore the
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 on the
Common Shares will be reduced or eliminated completely. Furthermore, if
prevailing short-term interest rates rise above long-term interest rates of 6%,
the yield curve has a negative slope. In this case, the Fund pays dividends
on the 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 Fund’s 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 redemp-
tion value of the Fund’s Preferred Shares does not fluctuate in relation to
interest rates. As a result, changes in interest rates can influence the Fund’s
NAV 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 (“TOB”) programs, as described in Note 1 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 returns 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 gen-
erally cause greater changes in the Funds’ NAV, market price and dividend
rate than a comparable portfolio 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, the Funds’ net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to Common Shareholders will be reduced. Each Fund
may be required to sell portfolio securities at inopportune times or at dis-
tressed 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 ratings agencies that rate 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, the Funds are permitted to
issue Preferred Shares in an amount of up to 50% of their total managed
assets at the time of issuance. Under normal circumstances, each Fund
anticipates that the total economic leverage from Preferred Shares and/or
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of July 31, 2010, the Funds had economic leverage
from Preferred Shares and/or TOBs as a percentage of their total managed
assets as follows:

  Percent of 
  Leverage 
MNE  34% 
MZA  39% 
MYC  42% 
MYF  38% 
MYJ  34% 

 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial
futures contracts, as specified in Note 2 of the Notes to Financial
Statements, which may constitute forms of economic leverage. Such instru-
ments are used to obtain exposure to a market without owning or taking
physical custody of securities or to hedge market and/or interest rate risks.
Such derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction or illiquidity of the
derivative instrument. Each Fund’s ability to successfully use a derivative

instrument depends on the investment advisor’s ability to accurately pre-
dict pertinent market movements, which cannot be assured. The use of
derivative instruments may result in losses greater than if they had not
been used, may require a Fund to sell or purchase portfolio securities at
inopportune times or for distressed values, may limit the amount of appre-
ciation a Fund can realize on an investment, may result in lower dividends
paid to shareholders, or may cause a Fund to hold a security 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, 2010

9



Schedule of Investments July 31, 2010

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

(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New York — 116.9%     
Corporate — 12.1%     
Jefferson County Industrial Development Agency     
New York, Refunding RB, Solid Waste, Series A, AMT,     
5.20%, 12/01/20  $ 500  $ 499,965 
New York City Industrial Development Agency, RB, AMT:     
1990 American Airlines Inc. Project, 5.40%, 7/01/20  1,500  1,214,535 
British Airways Plc Project, 7.63%, 12/01/32  1,000  1,010,940 
Continental Airlines Inc. Project, Mandatory     
Put Bonds, 8.38%, 11/01/16  1,000  998,830 
New York City Industrial Development Agency, Refunding     
RB, Terminal One Group Association Project, AMT:     
5.50%, 1/01/18  1,000  1,064,880 
5.50%, 1/01/24  1,000  1,024,870 
New York State Energy Research & Development     
Authority, Refunding RB:     
Brooklyn Union Gas/Keyspan, Series A, AMT (FGIC),     
4.70%, 2/01/24  500  505,310 
Rochester Gas & Electric Corp., Series C (NPFGC),     
5.00%, 8/01/32 (a)  1,000  1,050,830 
    7,370,160 
County/City/Special District/School District — 22.1%     
Amherst Development Corp., RB, UBF Faculty-Student     
Housing Corp., Series A (AGM), 4.00%, 10/01/24  1,000  999,960 
City of New York New York, GO:     
Series J (NPFGC), 5.25%, 5/15/18  1,500  1,683,360 
Sub-Series F-1 (Syncora), 5.00%, 9/01/22  1,000  1,107,210 
Sub-Series I-1, 5.50%, 4/01/21  1,500  1,759,950 
Sub-Series I-1, 5.13%, 4/01/25  750  829,193 
New York City Industrial Development Agency, RB,     
Queens Baseball Stadium, PILOT (AMBAC),     
5.00%, 1/01/31  1,500  1,398,150 
New York City Industrial Development Agency,     
Refunding RB:     
New York Stock Exchange Project, Series A,     
4.25%, 5/01/24  500  508,760 
Terminal One Group Association Project, AMT,     
5.50%, 1/01/21 (a)  250  260,430 
New York City Transitional Finance Authority, RB:     
Fiscal 2007, Series S-1 (NPFGC), 5.00%, 7/15/24  500  539,265 
Fiscal 2009, Series S-3, 5.00%, 1/15/23  575  630,562 
New York Liberty Development Corp., Refunding RB,     
Second Priority, Bank of America Tower at One Bryant     
Park Project, 5.63%, 7/15/47  1,000  1,021,670 
New York State Dormitory Authority, RB, Interagency     
Council Pooled, Series A-1, 4.25%, 7/01/25  1,000  984,760 
New York State Dormitory Authority, Refunding RB,     
Consolidated Service Contract, Series A,     
4.00%, 7/01/25  750  750,540 
United Nations Development Corp. New York,     
Refunding RB, Series A, 4.25%, 7/01/24  1,000  1,024,610 
    13,498,420 

 

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
Education — 13.6%       
Dutchess County Industrial Development Agency       
New York, Refunding RB, Bard College Civic Facility,       
Series A-1, 5.00%, 8/01/22  $ 750  $ 769,590 
Nassau County Industrial Development Agency,       
Refunding RB, New York Institute of Technology Project,     
Series A, 5.00%, 3/01/21    1,000  1,054,000 
New York City Industrial Development Agency, RB,       
Lycee Francais de New York Project, Series A (ACA),       
5.50%, 6/01/15    500  532,405 
New York City Industrial Development Agency,       
Refunding RB, Polytechnic University Project (ACA),       
4.70%, 11/01/22    1,000  940,340 
New York State Dormitory Authority, RB:       
Master BOCES Program Lease (AGM),       
3.50%, 8/15/25 (b)    1,000  927,800 
Mount Sinai School of Medicine, 5.50%, 7/01/25  1,000  1,057,700 
Mount Sinai School of Medicine, Series A (NPFGC),     
5.15%, 7/01/24    250  263,025 
Schenectady County Industrial Development Agency,       
Refunding RB, Union College Project, 5.00%, 7/01/26  1,000  1,066,940 
Suffolk County Industrial Development Agency,       
Refunding RB, New York Institute of Technology Project,     
5.25%, 3/01/21    600  621,324 
Trust for Cultural Resources, RB:       
Carnegie Hall, Series A, 5.00%, 12/01/29    750  788,212 
Museum of American Folk Art (ACA), 6.13%, 7/01/30  500  275,445 
      8,296,781 
Health — 21.3%       
Dutchess County Industrial Development Agency New York,     
RB, St. Francis Hospital, Series B, 7.25%, 3/01/19    355  361,060 
Erie County Industrial Development Agency, RB,       
Episcopal Church Home, Series A, 5.88%, 2/01/18    1,690  1,690,946 
Genesee County Industrial Development Agency New York,     
Refunding RB, United Memorial Medical Center Project,     
4.75%, 12/01/14    335  335,492 
New York City Industrial Development Agency, RB,       
PSCH Inc. Project, 6.20%, 7/01/20    1,415  1,355,740 
New York State Dormitory Authority, RB:       
NYU Hospital Center, Series B, 5.25%, 7/01/24    455  470,707 
New York State Association for Retarded       
Children, Inc., Series A, 5.30%, 7/01/23    450  482,513 
North Shore-Long Island Jewish Health System,       
Series A, 5.25%, 5/01/25    780  797,854 
New York State Dormitory Authority, Refunding RB:       
Lenox Hill Hospital Obligation Group, 5.75%, 7/01/17  500  507,855 
Mount Sinai Hospital, Series A, 4.25%, 7/01/23    600  597,912 
NYU Hospital Center, Series A, 5.00%, 7/01/16    1,130  1,221,134 
North Shore-Long Island Jewish Health System,       
Series E, 5.00%, 5/01/22    650  686,400 

 

Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the  CAB  Capital Appreciation Bonds  IDRB  Industrial Development Revenue Bonds 
Schedules of Investments, the names and descriptions of  CIFG  CDC IXIS Financial Guaranty  ISD  Independent School District 
many of the securities have been abbreviated according  COP  Certificates of Participation  LRB  Lease Revenue Bonds 
to the following list:  EDA  Economic Development Authority  MRB  Mortgage Revenue Bonds 
    ERB  Education Revenue Bonds  NPFGC  National Public Finance Guarantee Corp. 
ACA  ACA Financial Guaranty Corp.  FGIC  Financial Guaranty Insurance Co.  PILOT  Payment in Lieu of Taxes 
AGC  Assured Guaranty Corp.  GO  General Obligation Bonds  RB  Revenue Bonds 
AGM  Assured Guaranty Municipal Corp.  HFA  Housing Finance Agency  S/F  Single-Family 
AMBAC  American Municipal Bond Assurance Corp.  HRB  Housing Revenue Bonds  SONYMA  State of New York Mortgage Agency 
AMT  Alternative Minimum Tax (subject to)  IDA  Industrial Development Authority     
See Notes to Financial Statements.         

 

10 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
Health (concluded)       
Saratoga County Industrial Development Agency       
New York, Refunding RB, The Saratoga Hospital Project,     
Series A (Radian), 4.38%, 12/01/13  $ 365  $ 385,039 
Suffolk County Industrial Development Agency       
New York, Refunding RB, Jeffersons Ferry Project,       
4.63%, 11/01/16    800  813,200 
Tompkins County Industrial Development Agency       
New York, Refunding RB, Continuing Care Retirement     
Community, Kendal at Ithaca Project, Series A-2:       
5.75%, 7/01/18    250  250,235 
6.00%, 7/01/24    1,000  1,000,480 
Westchester County Industrial Development Agency       
New York, MRB, Kendal on Hudson Project, Series A,       
6.38%, 1/01/24    750  746,745 
Westchester County Industrial Development Agency       
New York, RB, Special Needs Facilities Pooled Program,     
Series D-1, 6.80%, 7/01/19    515  516,406 
Yonkers Industrial Development Agency New York, RB,       
Sacred Heart Associations Project, Series A, AMT       
(SONYMA), 4.80%, 10/01/26    750  744,952 
      12,964,670 
Housing — 15.5%       
New York City Housing Development Corp., RB:       
The Animal Medical Center, Series A,       
5.50%, 12/01/33    1,615  1,616,841 
Series C, 4.25%, 11/01/25    825  836,946 
New York Mortgage Agency, Refunding RB, AMT:       
Homeowner Mortgage, Series 130, 4.75%, 10/01/30  2,500  2,449,000 
Series 133, 4.95%, 10/01/21    395  402,102 
Series 143, 4.85%, 10/01/27    500  489,700 
New York State Urban Development Corp., RB, Subordinate     
Lien, Corporate Purpose, Series A, 5.13%, 7/01/19    2,000  2,166,780 
Yonkers Economic Development Corp., Refunding RB,       
Riverview II (Freddie Mac), 4.50%, 5/01/25    1,500  1,511,700 
      9,473,069 
State — 11.3%       
New York State Dormitory Authority, ERB, Series F,       
5.00%, 3/15/30    1,290  1,348,347 
New York State Dormitory Authority, LRB, Municipal Health     
Facilities, Sub-Series 2-4, 5.00%, 1/15/27    600  622,278 
New York State Dormitory Authority, Refunding RB,       
Department of Health, Series A (CIFG), 5.00%, 7/01/25  1,500  1,575,900 
New York State Thruway Authority, Refunding RB,       
Series A-1, 5.00%, 4/01/22    1,000  1,135,700 
New York State Urban Development Corp., RB, State       
Personal Income Tax, State Facilities, Series A-1       
(NPFGC), 5.00%, 3/15/24    485  522,830 
New York State Urban Development Corp., Refunding RB,     
Service Contract, Series B, 5.00%, 1/01/21    1,500  1,665,360 
      6,870,415 
Tobacco — 1.8%       
Tobacco Settlement Financing Corp. New York, RB,       
Asset-Backed, Series B-1C, 5.50%, 6/01/22    1,000  1,094,210 
Transportation — 10.7%       
Metropolitan Transportation Authority, RB (NPFGC):       
Series A, 5.00%, 11/15/24    2,000  2,145,800 
Series B, 5.25%, 11/15/19    860  995,897 
Metropolitan Transportation Authority, Refunding RB:       
Series A (NPFGC), 5.00%, 11/15/25    2,000  2,049,400 
Series B, 5.25%, 11/15/25    750  833,183 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.00%, 11/01/23  500  524,180 
      6,548,460 

 

  Par   
Municipal Bonds  (000)  Value 
New York (concluded)     
Utilities — 8.5%     
Long Island Power Authority, Refunding RB:     
General, Series D (NPFGC), 5.00%, 9/01/25  $ 4,000  $ 4,189,840 
Series A, 5.50%, 4/01/24  875  978,460 
    5,168,300 
Total Municipal Bonds in New York    71,284,485 
Guam — 2.5%     
County/City/Special District/School District — 0.5%     
Territory of Guam, RB, Section 30, Series A,     
5.38%, 12/01/24  325  334,467 
State — 0.3%     
Territory of Guam, GO, Series A, 6.00%, 11/15/19  185  192,119 
Utilities — 1.7%     
Guam Government Waterworks Authority, Refunding RB,     
Water, 6.00%, 7/01/25  1,000  1,023,190 
Total Municipal Bonds in Guam    1,549,776 
Puerto Rico — 21.5%     
Education — 0.8%     
Puerto Rico Industrial Tourist Educational Medical &     
Environmental Control Facilities Financing Authority,     
RB, University Plaza Project, Series A (NPFGC),     
5.00%, 7/01/33  500  491,275 
Housing — 3.3%     
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,     
5.13%, 12/01/27  2,000  2,019,460 
State — 6.1%     
Commonwealth of Puerto Rico, GO, Public Improvement,     
Series A, 5.25%, 7/01/16 (c)  615  743,996 
Commonwealth of Puerto Rico, GO, Refunding:     
Public Improvement, Series A (NPFGC),     
5.50%, 7/01/21  1,000  1,067,680 
Public Improvement, Series A-4 (AGM),     
5.25%, 7/01/30  350  360,178 
Puerto Rico Municipal Finance Agency, GO, Series A,     
5.25%, 8/01/25  1,000  1,014,480 
Puerto Rico Public Buildings Authority, Refunding RB,     
Government Facilities, Series M-3 (NPFGC),     
6.00%, 7/01/28  500  527,660 
    3,713,994 
Transportation — 9.7%     
Puerto Rico Highway & Transportation Authority, RB:     
Series Y (AGM), 6.25%, 7/01/21  3,000  3,398,760 
Subordinate (FGIC), 5.75%, 7/01/21  2,000  2,054,660 
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26  450  466,043 
    5,919,463 
Utilities — 1.6%     
Puerto Rico Electric Power Authority, RB, Series CCC,     
4.25%, 7/01/23  1,000  980,960 
Total Municipal Bonds in Puerto Rico    13,125,152 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

11



Schedule of Investments (concluded)

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

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
U.S. Virgin Islands — 3.3%       
Corporate — 1.6%       
United States Virgin Islands, Refunding RB,       
Senior Secured, Hovensa Coker Project, AMT,       
6.50%, 7/01/21  $ 500  $ 507,710 
Virgin Islands Public Finance Authority, RB,       
Senior Secured, Hovensa Refinery, AMT,       
4.70%, 7/01/22    500  460,980 
      968,690 
State — 1.7%       
Virgin Islands Public Finance Authority, RB, Senior Lien,       
Matching Fund Loan Note, Series A, 5.25%, 10/01/24  1,000  1,023,960 
Total Municipal Bonds in the U.S. Virgin Islands      1,992,650 
Total Municipal Bonds — 144.2%      87,952,063 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (d)       
New York — 3.9%       
County/City/Special District/School District — 1.4%       
City of New York New York, GO, Sub-Series B-1,       
5.25%, 9/01/22    750  851,895 
Utilities — 2.5%       
New York City Municipal Water Finance Authority,       
Refunding RB, Series A, 4.75%, 6/15/30    1,500  1,546,050 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 3.9%      2,397,945 
Total Long-Term Investments       
(Cost — $87,625,309) — 148.1%      90,350,008 
Short-Term Securities  Shares   
BIF New York Municipal Money Fund, 0.00% (e)(f)  1,976,046  1,976,046 
Total Short-Term Securities       
(Cost — $1,976,046) — 3.2%      1,976,046 
Total Investments (Cost — $89,601,355*) — 151.3%      92,326,054 
Liabilities in Excess of Other Assets — (0.9)%      (557,259) 
Liability for Trust Certificates, Including Interest       
Expense and Fees Payable — (1.8)%      (1,125,652) 
Preferred Shares, at Redemption Value — (48.6)%      (29,633,534) 
Net Assets Applicable to Common Shares — 100.0%      $ 61,009,609 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 88,341,873 
Gross unrealized appreciation  $ 3,503,005 
Gross unrealized depreciation  (643,824) 
Net unrealized appreciation  $ 2,859,181 

 

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

    Unrealized 
Counterparty  Value  Depreciation 
Roosevelt & Cross, Inc.  $ 927,800  $(1,100) 

 

(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 tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(e) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, are as follows:

  Shares Held    Shares Held   
  at July 31,  Net  at July 31,   
Affiliate  2009  Activity  2010  Income 
BIF New York         
Municipal         
Money Fund  1,737,841  238,205  1,976,046  $ 119 

 

(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.
This definition 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, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
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 inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of July 31, 2010 in determining
the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1  —   $ 90,350,008    $ 90,350,008 
Short-Term         
Securities  $ 1,976,046      1,976,046 
Total  $ 1,976,046  $ 90,350,008    $ 92,326,054 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

12 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments July 31, 2010

BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Arizona — 128.6%     
County/City/Special District/School District — 56.0%     
City of Glendale Arizona, RB (NPFGC), 5.00%, 7/01/25 $  2,305  $ 2,467,502 
City of Tucson Arizona, COP:     
(AGC), 5.00%, 7/01/29  1,000  1,034,880 
Series A (NPFGC), 5.00%, 7/01/20  1,500  1,608,540 
County of Pinal Arizona, COP:     
5.00%, 12/01/26  1,250  1,255,713 
5.00%, 12/01/29  1,250  1,250,400 
Downtown Phoenix Hotel Corp., RB, Senior Series A     
(FGIC), 5.00%, 7/01/36  245  205,161 
Gila County Unified School District No. 10-Payson     
Arizona, GO, School Improvement Project of 2006,     
Series A (AMBAC), 5.25%, 7/01/27 (a)  500  531,225 
Gilbert Public Facilities Municipal Property Corp. Arizona,     
RB, 5.50%, 7/01/27  2,000  2,180,820 
Gladden Farms Community Facilities District, GO,     
5.50%, 7/15/31  750  596,715 
Greater Arizona Development Authority, RB, Santa Cruz     
County Jail, Series 2, 5.25%, 8/01/31  1,000  1,045,150 
Maricopa County Community College District Arizona,     
GO, Series C, 3.00%, 7/01/22  1,000  1,002,320 
Maricopa County Pollution Control Corp., Refunding RB,     
Southern California Edison Co., Series A,     
5.00%, 6/01/35  2,100  2,112,831 
Maricopa County Public Finance Corp., RB, Series A     
(AMBAC), 5.00%, 7/01/24  2,500  2,665,800 
Maricopa County Unified School District No. 11-Peoria     
Arizona, GO, School Improvement, 2nd Series (NPFGC),     
5.00%, 7/01/25  430  457,107 
Maricopa County Unified School District No. 89-Dysart     
Arizona, GO, School Improvement Project of 2006,     
Series C, 6.00%, 7/01/28  1,000  1,117,310 
Mohave County Unified School District No. 20     
Kingman, GO, School Improvement Project of 2006,     
Series C (AGC):     
5.50%, 7/01/20  755  888,159 
5.00%, 7/01/26  1,000  1,083,730 
Phoenix Civic Improvement Corp., RB, Subordinate,     
Civic Plaza Expansion Project, Series A (NPFGC),     
5.00%, 7/01/35  3,325  3,369,688 
Queen Creek Improvement District No. 1, Special     
Assessment Bonds, 5.00%, 1/01/32  1,000  981,900 
Scottsdale Municipal Property Corp. Arizona, RB,     
Water & Sewer Development Project, Series A,     
5.00%, 7/01/24  1,500  1,670,865 
Scottsdale Municipal Property Corp. Arizona,     
Refunding RB, 5.00%, 7/01/26  1,570  1,820,022 
State of Arizona, RB, Series A (AGM), 5.00%, 7/01/29  2,000  2,048,220 
Vistancia Community Facilities District Arizona, GO:     
6.75%, 7/15/22  1,275  1,334,262 
5.75%, 7/15/24  750  792,938 
Yuma County Library District, GO (Syncora),     
5.00%, 7/01/26  1,465  1,535,598 
    35,056,856 
Education — 14.2%     
Arizona State University, RB, Series 2008-C:     
6.00%, 7/01/25  970  1,112,590 
6.00%, 7/01/26  745  848,510 
6.00%, 7/01/27  425  481,576 
6.00%, 7/01/28  300  338,634 
Maricopa County IDA Arizona, RB, Arizona Charter     
Schools Project, Series A, 6.63%, 7/01/20  900  698,292 

 

  Par   
Municipal Bonds  (000)  Value 
Arizona (continued)     
Education (concluded)     
Pima County IDA, RB, Arizona Charter Schools Project,     
Series C:     
6.70%, 7/01/21  $ 720  $ 720,792 
6.75%, 7/01/31  985  959,666 
Pima County IDA, Refunding RB:     
Arizona Charter Schools Project, Series O,     
5.00%, 7/01/26  1,000  820,620 
Charter Schools II, Series A, 6.75%, 7/01/21  565  565,876 
University of Arizona, COP, Refunding, University of Arizona     
Projects, Series A (AMBAC), 5.13%, 6/01/29  905  920,521 
University of Arizona, COP, University of Arizona Projects,     
Series B (AMBAC), 5.00%, 6/01/28  1,400  1,416,506 
    8,883,583 
Health — 13.3%     
Arizona Health Facilities Authority, Refunding RB, Banner     
Health, Series D:     
6.00%, 1/01/30  1,500  1,536,450 
5.50%, 1/01/38  1,300  1,327,703 
Maricopa County IDA Arizona, Refunding RB Series A:     
Catholic Healthcare West, 5.50%, 7/01/26  1,850  1,898,673 
Samaritan Health Services (NPFGC),     
7.00%, 12/01/16 (b)  1,000  1,218,720 
University Medical Center Corp. Arizona, RB,     
6.50%, 7/01/39  500  535,940 
Yavapai County IDA Arizona, RB, Yavapai Regional     
Medical Center, Series A, 6.00%, 8/01/33  1,800  1,815,192 
    8,332,678 
Housing — 6.4%     
Maricopa County & Phoenix Industrial Development     
Authorities, Refunding RB, AMT (Ginnie Mae) S/F:     
Series A-1, 5.75%, 5/01/40  605  646,188 
Series A-2, 5.80%, 7/01/40  440  448,479 
Maricopa County IDA Arizona, RB, Series 3-B, AMT     
(Ginnie Mae), 5.25%, 8/01/38  856  892,527 
Phoenix & Pima County IDA, RB, Series 1A, AMT     
(Ginnie Mae), 5.65%, 7/01/39  388  412,007 
Phoenix & Pima County IDA, Refunding RB,     
Series 2007-1, AMT (Ginnie Mae), 5.25%, 8/01/38  798  803,667 
Phoenix IDA Arizona, Refunding RB, Series 2007-2, AMT     
(Ginnie Mae), 5.50%, 8/01/38  787  802,306 
    4,005,174 
State — 15.6%     
Arizona School Facilities Board, COP:     
5.13%, 9/01/21  1,000  1,088,780 
5.75%, 9/01/22  2,000  2,266,720 
Arizona Sports & Tourism Authority, RB, Baseball Training     
Facilities Project, 5.00%, 7/01/16  400  406,932 
Arizona State Transportation Board, RB, Series B,     
5.00%, 7/01/30  4,000  4,280,320 
Greater Arizona Development Authority, RB, Series B     
(NPFGC), 5.00%, 8/01/30  1,700  1,743,061 
    9,785,813 
Transportation — 4.2%     
Phoenix Civic Improvement Corp., RB Senior Lien:     
Series A, 5.00%, 7/01/33  1,000  1,018,950 
Series B, AMT (NPFGC), 5.75%, 7/01/17  1,000  1,045,650 
Series B, AMT (NPFGC), 5.25%, 7/01/32  600  600,948 
    2,665,548 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

13



Schedule of Investments (continued)

BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Arizona (concluded)     
Utilities — 18.9%     
City of Mesa Arizona, RB (NPFGC), 5.00%, 7/01/23  $ 1,500  $ 1,703,745 
County of Pima Arizona, RB, System (AGM),     
5.00%, 7/01/25  1,000  1,071,870 
Gilbert Water Resource Municipal Property Corp., RB,     
Subordinate Lien (NPFGC), 5.00%, 10/01/29  900  933,966 
Phoenix Civic Improvement Corp., RB, Junior Lien     
(NPFGC), 5.50%, 7/01/20  2,500  2,691,200 
Phoenix Civic Improvement Corp., Refunding RB,     
Senior Lien, 5.50%, 7/01/22  2,000  2,316,460 
Pinal County IDA Arizona, RB, San Manuel Facility     
Project, AMT, 6.25%, 6/01/26  500  439,005 
Salt River Project Agricultural Improvement & Power     
District, RB, Series A, 5.00%, 1/01/24  1,000  1,111,040 
Salt River Project Agricultural Improvement & Power     
District, Refunding RB, Salt River Project, Series A,     
5.00%, 1/01/35  1,500  1,556,835 
    11,824,121 
Total Municipal Bonds in Arizona    80,553,773 
Guam — 1.6%     
Utilities — 1.6%     
Guam Government Waterworks Authority, Refunding RB,     
Water, 5.88%, 7/01/35  1,000  1,008,380 
Total Municipal Bonds in Guam    1,008,380 
Puerto Rico — 22.3%     
County/City/Special District/School District — 2.2%     
Puerto Rico Sales Tax Financing Corp., Refunding RB:     
CAB, Series A (NPFGC), 5.75%, 8/01/41 (c)  5,000  752,450 
First Sub-Series C, 6.00%, 8/01/39  600  647,754 
    1,400,204 
Housing — 2.3%     
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,     
5.50%, 12/01/18  1,250  1,406,150 
State — 7.2%     
Commonwealth of Puerto Rico, GO, Series A,     
6.00%, 7/01/38  800  844,256 
Puerto Rico Public Buildings Authority, Refunding RB,     
Government Facilities:     
Series M-3 (NPFGC), 6.00%, 7/01/28  900  949,788 
Series N, 5.50%, 7/01/27  1,000  1,023,030 
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A, 6.38%, 8/01/39  1,500  1,656,060 
    4,473,134 
Transportation — 3.7%     
Puerto Rico Highway & Transportation Authority,     
Refunding RB:     
Series AA (NPFGC), 5.50%, 7/01/18  1,000  1,098,790 
Series AA (NPFGC), 5.50%, 7/01/20  350  378,472 
Series CC, 5.50%, 7/01/31  790  828,236 
    2,305,498 

 

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Utilities — 6.9%     
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,   
Series A (Radian), 6.00%, 7/01/44  $ 2,180  $ 2,270,383 
Puerto Rico Electric Power Authority, RB, Series WW:     
5.38%, 7/01/24  1,000  1,052,950 
5.50%, 7/01/38  1,000  1,022,480 
    4,345,813 
Total Municipal Bonds in Puerto Rico    13,930,799 
Total Municipal Bonds — 152.5%    95,492,952 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
Arizona — 5.1%     
Utilities — 5.1%     
Phoenix Civic Improvement Corp., RB, Junior Lien,     
Series A, 5.00%, 7/01/34  3,000  3,160,920 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 5.1%    3,160,920 
Total Long-Term Investments     
(Cost — $96,164,942) — 157.6%    98,653,872 
Short-Term Securities  Shares   
BIF Arizona Municipal Money Fund, 0.00% (e)(f)  3,274,527  3,274,527 
Total Short-Term Securities     
(Cost — $3,274,527) — 5.2%    3,274,527 
Total Investments (Cost – $99,439,469*) — 162.8%    101,928,399 
Other Assets Less Liabilities — 1.6%    994,609 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (2.4)%    (1,500,314) 
Preferred Shares, at Redemption Value — (62.0)%    (38,804,568) 
Net Assets Applicable to Common Shares — 100.0%    $ 62,618,126 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 97,928,421 
Gross unrealized appreciation  $ 3,546,618 
Gross unrealized depreciation  (1,046,640) 
Net unrealized appreciation  $ 2,499,978 

 

(a) 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 reflects the current
yield as of report date.
(b) Security is collateralized by Municipal or US Treasury obligations.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

14 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments (concluded)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(e) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at July 31,  Net  at July 31,   
Affiliate  2009  Activity  2010  Income 
BIF Arizona         
Municipal         
Money Fund  4,187,171  (912,644)  3,274,527   

 

(f) Represents the current yield as of report date.
Financial futures contracts sold as of July 31, 2010 were as follows:

    Expiration  Notional  Unrealized 
Contracts  Issue  Date  Value  Depreciation 
12  10 Year US       
  Treasury Bond  September 2010  1,459,849  $ (25,901) 

 

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.
This definition 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 and derivatives, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
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
Series’ own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of July 31, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1  —   $ 98,653,872    $ 98,653,872 
Short-Term         
Securities  $ 3,274,527      3,274,527 
Total  $ 3,274,527 $ 98,653,872    $ 101,928,399 
1 See above Schedule of Investments for values in each sector.   
Derivative Financial Instruments2

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Liabilities:         
Interest rate         
contracts  $ (25,901)      $ (25,901) 

 

2 Derivative financial Instruments are financial futures contracts which are shown
at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

15



Schedule of Investments July 31, 2010

BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
California — 93.7%       
Corporate — 3.8%       
California Pollution Control Financing Authority, RB,       
Waste Management Inc. Project, Series C, Mandatory     
Put Bonds, AMT, 6.75%, 12/01/27 (a)  $ 3,300  $ 3,348,312 
City of Chula Vista California, RB, San Diego Gas &       
Electric, Series B, AMT, 5.00%, 12/01/27    7,500  7,508,625 
City of Chula Vista California, Refunding RB, San Diego     
Gas & Electric, Series A, 5.88%, 2/15/34    975  1,077,775 
      11,934,712 
County/City/Special District/School District — 27.6%     
Arcata Joint Powers Financing Authority California, Tax       
Allocation Bonds, Refunding, Community Development     
Project Loan, Series A (AMBAC), 6.00%, 8/01/23    2,415  2,416,739 
City of Los Angeles California, COP, Senior, Sonnenblick     
Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31  2,000  2,026,480 
El Dorado Union High School District, GO, Election       
of 2008, 5.00%, 8/01/35 (b)    5,000  5,187,350 
El Monte Union High School District California, GO,       
Election of 2002, Series C (AGM), 5.25%, 6/01/32  10,120  10,514,275 
Fontana Unified School District California, GO, Series A     
(AGM), 5.25%, 8/01/28    7,000  7,411,600 
Los Angeles Municipal Improvement Corp., RB, Real       
Property, Series E:       
5.75%, 9/01/34    500  533,105 
6.00%, 9/01/34    1,860  2,034,170 
Modesto Irrigation District, COP, Series B,       
5.50%, 7/01/35    3,300  3,501,894 
Morgan Hill Unified School District California, GO, CAB     
(FGIC), 5.07%, 8/01/26 (c)(d)    7,570  3,953,962 
Murrieta Valley Unified School District Public Financing     
Authority, Special Tax Bonds, Refunding, Series A       
(AGC), 5.13%, 9/01/26    6,675  7,073,164 
Oak Grove School District California, GO, Election       
of 2008, Series A, 5.50%, 8/01/33    4,000  4,305,680 
Pico Rivera Public Financing Authority, RB:       
5.50%, 9/01/31    1,500  1,546,425 
5.75%, 9/01/39    6,025  6,235,754 
Pittsburg Redevelopment Agency, Tax Allocation Bonds,     
Refunding, Subordinate, Los Medanos Community       
Project, Series A, 6.50%, 9/01/28    2,750  3,044,580 
San Diego Regional Building Authority California, RB,       
County Operations Center & Annex, Series A:       
5.38%, 2/01/28    150  161,826 
5.38%, 2/01/36    3,200  3,400,672 
San Jose Evergreen Community College District       
California, GO, Refunding, CAB, Election of 2004,       
Series A (NPFGC), 5.12%, 9/01/23 (c)    10,005  5,224,011 
San Juan Unified School District California, GO, Election     
of 2002 (NPFGC), 5.00%, 8/01/28    5,000  5,131,800 
Santa Ana Unified School District, GO, Election of 2008,     
Series A, 5.13%, 8/01/33    5,000  5,184,250 
Santa Cruz County Redevelopment Agency California,       
Tax Allocation Bonds, Live Oak/Soquel Community       
Improvement, Series A:       
6.63%, 9/01/29    1,000  1,093,760 
7.00%, 9/01/36    500  557,200 
Vacaville Unified School District California, GO, Election     
of 2001 (NPFGC), 5.00%, 8/01/30    4,745  4,795,155 
Westminster Redevelopment Agency California,       
Tax Allocation Bonds, Subordinate, Commercial       
Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39  1,250  1,429,938 
      86,763,790 

 

    Par   
Municipal Bonds    (000)  Value 
California (continued)       
Education — 9.9%       
California Educational Facilities Authority, RB, Pitzer       
College, 6.00%, 4/01/40  $ 2,500  $ 2,683,675 
California State Enterprise Development Authority,       
Refunding RB, The Thacher School Project,       
5.13%, 9/01/39    6,965  7,099,007 
California State University, RB, Systemwide, Series A,       
5.50%, 11/01/39    2,725  2,932,400 
Los Angeles Community College District California, GO,     
Election of 2008, Series C, 5.25%, 8/01/39 (b)    9,680  10,172,034 
San Francisco Community College District, GO, Election     
of 2005, Series D, 5.00%, 6/15/34    5,420  5,664,659 
University of California, RB, Limited Project, Series D       
(NPFGC), 5.00%, 5/15/32    2,500  2,600,475 
      31,152,250 
Health — 13.7%       
ABAG Finance Authority for Nonprofit Corps,       
Refunding RB, Sharp Healthcare, 6.38%, 8/01/34    1,750  1,851,255 
California Health Facilities Financing Authority,       
Refunding RB:       
Catholic Healthcare West, Series A, 6.00%, 7/01/39  10,000  10,719,500 
Catholic Healthcare West, Series E, 5.63%, 7/01/25  6,000  6,454,620 
Scripps Health, Series A, 5.00%, 11/15/36    4,995  5,005,689 
St. Joseph Health System, Series A, 5.50%, 7/01/29  2,100  2,199,351 
California Statewide Communities Development       
Authority, RB, Health Facility, Memorial Health       
Services, Series A:       
6.00%, 10/01/23    3,270  3,419,210 
5.50%, 10/01/33    3,015  3,064,808 
California Statewide Communities Development Authority,     
Refunding RB:       
Catholic Healthcare West, Series D, 5.50%, 7/01/31  5,055  5,213,019 
Senior Living, Southern California, 6.25%, 11/15/19  500  553,910 
Senior Living, Southern California, 6.63%, 11/15/24  650  699,634 
Senior Living, Southern California, 7.00%, 11/15/29  500  541,080 
Senior Living, Southern California, 7.25%, 11/15/41  1,750  1,907,763 
City of Torrance California, Refunding RB, Torrance       
Memorial Medical Center, Series A, 6.00%, 6/01/22  1,310  1,357,370 
      42,987,209 
Housing — 1.2%       
California Rural Home Mortgage Finance Authority, RB, AMT:     
Mortgage-Backed Securities Program, Series B       
(Ginnie Mae), 6.15%, 6/01/20    20  20,735 
Sub-Series FH-1, 5.50%, 8/01/47    410  205,000 
Santa Clara County Housing Authority California, RB,       
John Burns Gardens Apartments Project, Series A,       
AMT, 6.00%, 8/01/41    3,500  3,490,200 
      3,715,935 
State — 9.1%       
California State Public Works Board, RB:       
Department of Developmental Services, Porterville,     
Series C, 6.25%, 4/01/34    1,100  1,156,177 
Department of Education, Riverside Campus Project,     
Series B, 6.50%, 4/01/34    10,000  10,767,000 
Trustees of the California State University, Series D,     
6.00%, 4/01/27    215  225,944 
Various Capital Projects, Sub-Series I-1,       
6.38%, 11/01/34    1,850  1,974,264 
State of California, GO, Various Purpose:       
6.00%, 3/01/33    5,000  5,412,500 
6.50%, 4/01/33    5,000  5,623,050 
6.00%, 4/01/35    3,385  3,615,586 
      28,774,521 

 

See Notes to Financial Statements.

16 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments (continued)

BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
California (concluded)     
Transportation — 4.6%     
County of Orange California, RB, Series B,     
5.75%, 7/01/34  $ 3,000  $ 3,267,210 
County of Sacramento California, RB, Senior Series B,     
5.75%, 7/01/39  900  974,214 
San Francisco City & County Airports Commission, RB,     
Series E, 6.00%, 5/01/39  4,835  5,339,822 
San Francisco Port Commission California, RB, Series A,     
5.13%, 3/01/40  5,000  5,050,700 
    14,631,946 
Utilities — 23.8%     
California Infrastructure & Economic Development Bank,     
RB, California Independent System Operator, Series A,     
6.25%, 2/01/39  2,170  2,301,459 
California Statewide Communities Development     
Authority, RB, Pooled Financing Program, Series C,     
City of West Sacramento (AGM), 5.25%, 10/01/28  2,380  2,413,082 
City of Chula Vista California, Refunding RB, San Diego     
Gas & Electric, Series D, 5.88%, 1/01/34  2,500  2,763,525 
Eastern Municipal Water District California, COP, Series H,     
5.00%, 7/01/35  7,975  8,259,388 
Los Angeles Department of Water & Power, RB, System,     
Sub-Series A-1 (AMBAC), 5.00%, 7/01/38  6,530  6,737,719 
Metropolitan Water District of Southern California, RB,     
Series A, 5.00%, 7/01/32  680  721,990 
Metropolitan Water District of Southern California,     
Refunding RB, Series B, 5.00%, 7/01/35  2,675  2,801,742 
Oxnard Financing Authority, RB, Redwood Trunk Sewer &     
Headworks, Series A (NPFGC), 5.25%, 6/01/34  4,160  4,227,517 
Sacramento Municipal Utility District, RB, Cosumnes     
Project (NPFGC), 5.13%, 7/01/29  18,500  18,872,775 
Sacramento Regional County Sanitation District,     
Refunding RB, County Sanitation District 1 (NPFGC),     
5.00%, 8/01/35  5,925  6,059,023 
San Diego Public Facilities Financing Authority,     
Refunding RB, Senior Series A, 5.38%, 5/15/34  1,910  2,050,194 
San Francisco City & County Public Utilities Commission,     
Refunding RB, Series A, 5.13%, 11/01/39  2,295  2,440,296 
Southern California Public Power Authority, RB, Canyon     
Power, Series A, 5.25%, 7/01/27  13,760  15,075,869 
    74,724,579 
Total Municipal Bonds in California    294,684,942 
Puerto Rico — 3.2%     
County/City/Special District/School District — 1.8%     
Commonwealth of Puerto Rico, GO, Refunding, Public     
Improvement, Series B, 6.50%, 7/01/37  4,000  4,430,360 
State — 1.4%     
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A, 6.50%, 8/01/44  5,000  5,542,200 
Total Municipal Bonds in Puerto Rico    9,972,560 
Total Municipal Bonds — 96.9%    304,657,502 

 

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (e)    (000)  Value 
California — 72.5%       
Corporate — 8.6%       
San Francisco Bay Area Rapid Transit District,       
Refunding RB, Series A (NPFGC), 5.00%, 7/01/30  $ 6,000  $ 6,295,380 
University of California, RB:       
Limited Project, Series B (AGM), 5.00%, 5/15/33    8,488  8,657,945 
Series L, 5.00%, 5/15/40    11,597  11,945,987 
      26,899,312 
County/City/Special District/School District — 30.3%     
City of Los Angeles California, Refunding RB,       
Series A, 5.00%, 6/01/39    9,870  10,284,442 
Contra Costa Community College District California, GO,     
Election of 2002 (AGM), 5.00%, 8/01/30    10,215  10,452,585 
Fremont Unified School District Alameda County California,     
GO, Election of 2002, Series B (AGM), 5.00%, 8/01/30  4,003  4,117,100 
Los Angeles Community College District California, GO:     
Election of 2001, Series E-1, 5.00%, 8/01/33    14,850  15,233,873 
Election of 2008, Series A, 6.00%, 8/01/33    3,828  4,319,231 
Orange County Sanitation District, COP (NPFGC),       
5.00%, 2/01/33    9,348  9,538,272 
San Diego Community College District California,       
GO, Election of 2002, 5.25%, 8/01/33    7,732  8,241,634 
San Francisco Bay Area Transit Financing Authority,       
Refunding RB, Series A (NPFGC), 5.00%, 7/01/34    5,439  5,649,459 
Santa Clara County Financing Authority, Refunding LRB,     
Series L, 5.25%, 5/15/36    10,001  10,515,909 
Sonoma County Junior College District, GO, Refunding,     
Election of 2002, Series B (AGM), 5.00%, 8/01/28  6,875  7,123,830 
Twin Rivers Unified School District, GO, Election of       
2006 (AGM), 5.00%, 8/01/29    9,390  9,618,925 
      95,095,260 
Education — 14.0%       
California Educational Facilities Authority, RB, University     
of Southern California, Series A, 5.25%, 10/01/39    13,845  14,880,329 
California State University, RB, Systemwide,       
Series A (AGM), 5.00%, 11/01/39    4,840  4,891,691 
Los Angeles Community College District California, GO,     
Election of 2003, Series E (AGM), 5.00%, 8/01/31  10,002  10,262,145 
Peralta Community College District, GO, Election of 2000,     
Series D (AGM), 5.00%, 8/01/30    1,995  2,059,080 
University of California, RB:       
Series L, 5.00%, 5/15/36    8,500  8,826,400 
Series O, 5.75%, 5/15/34    2,805  3,167,855 
      44,087,500 
Utilities — 19.6%       
Eastern Municipal Water District, COP,       
Series H, 5.00%, 7/01/33    4,748  4,917,319 
Los Angeles Department of Water & Power, RB:       
Power System, Sub-Series A-1       
(AMBAC), 5.00%, 7/01/37    15,098  15,587,224 
System, Sub-Series A-2 (AGM), 5.00%, 7/01/35    7,250  7,462,860 
Metropolitan Water District of Southern California, RB:     
Series A, 5.00%, 7/01/37    20,000  21,062,000 
Series C, 5.00%, 7/01/35    7,145  7,483,515 
San Diego County Water Authority, COP, Series A       
(AGM), 5.00%, 5/01/31    5,010  5,143,817 
      61,656,735 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 72.5%      227,738,807 
Total Long-Term Investments       
(Cost — $517,983,890) — 169.4%      532,396,309 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

17



Schedule of Investments (concluded)

BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)

Short-Term Securities  Shares  Value 
BIF California Municipal Money Fund,     
0.04%, (f)(g)  12,364,497  $ 12,364,497 
Total Short-Term Securities     
(Cost — $12,364,497) — 3.9%    12,364,497 
Total Investments (Cost – $530,348,387*) — 173.3%  544,760,806 
Liabilities in Excess of Other Assets — (2.1)%    (6,579,601) 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (37.5)%    (117,887,855) 
Preferred Shares, at Redemption Value — (33.7)%    (105,966,974) 
Net Assets Applicable to Common Shares — 100.0%    $314,326,376 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 412,648,362 
Gross unrealized appreciation  $ 15,581,289 
Gross unrealized depreciation  (1,287,499) 
Net unrealized appreciation  $ 14,293,790 

 

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

    Unrealized 
    Appreciation 
Counterparty  Value  (Depreciation) 
Robert Baird & Co.  $ 5,187,350  $(12,000) 
Morgan Stanley & Co.  $10,172,034  $ 72,116 

 

(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Security is collateralized by Municipal or US Treasury obligations.
(e) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(f) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

         Shares Held  Shares Held   
    at July 31,  Net  at July 31,   
Affiliate  2009  Activity  2010  Income 
BIF California           
Municipal           
Money Fund  7,607,697  4,756,800  12,364,497  $ 2,491 
(g) Represents the current yield as of report date.     
Financial futures contracts sold as of July 31, 2010 were as follows:   
        Expiration  Notional  Unrealized 
Contracts  Issue    Date  Value  Depreciation 
25  10-Year U.S.         
  Treasury Bond  September 2010  $3,041,742  $ (53,571) 

 

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.
This definition 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 and derivatives, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
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
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of July 31, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1    $ 532,396,309    $ 532,396,309 
Short-Term         
Securities  $ 12,364,497      12,364,497 
Total  $ 12,364,497  $ 532,396,309    $ 544,760,806 
1 See above Schedule of Investments for values in each sector.   
Derivative Financial Instruments2

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Liabilities:         
Interest rate         
contracts  $ (53,571)      $ (53,571) 

 

2 Derivative financial Instruments are financial futures contracts which are shown
at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

18 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments July 31, 2010

BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Arizona — 1.4%       
Maricopa County Pollution Control Corp., Refunding RB,     
Southern California Edison Co., Series A,       
5.00%, 6/01/35  $ 1,380  $ 1,388,432 
Pima County IDA, Refunding IDRB, Tucson Electric Power,     
5.75%, 9/01/29    1,230  1,256,531 
      2,644,963 
California — 18.5%       
California Health Facilities Financing Authority,       
Refunding RB, Series A:       
Catholic Healthcare West, 6.00%, 7/01/39    710  761,085 
St. Joseph Health System, 5.75%, 7/01/39    2,700  2,824,389 
California State Public Works Board, RB:       
Department of General Services, Buildings 8 & 9,     
Series A, 6.25%, 4/01/34    4,525  4,756,092 
Various Capital Projects, Sub-Series I-1,       
6.38%, 11/01/34    1,265  1,349,970 
Los Angeles Community College District California, GO,     
Election of 2008, Series C, 5.25%, 8/01/39 (a)    5,245  5,511,603 
Los Angeles Department of Airports, Refunding RB,       
Senior, Los Angeles International Airport, Series A,       
5.00%, 5/15/35    5,420  5,520,487 
Los Angeles Department of Water & Power, RB, Power       
System, Sub-Series A-1, 5.25%, 7/01/38    3,300  3,522,123 
San Diego Regional Building Authority California,       
RB, County Operations Center & Annex, Series A,       
5.38%, 2/01/36    3,310  3,517,570 
San Francisco City & County Airports Commission, RB,     
Second Series, Series F, 5.00%, 5/01/40 (a)    2,710  2,701,464 
San Francisco City & County Airports Commission,       
Refunding RB, Second Series A-3, Mandatory       
Put Bonds, AMT, 6.75%, 5/01/19 (b)    2,500  2,586,600 
State of California, GO, Various Purpose, 6.00%, 3/01/33  2,535  2,744,137 
      35,795,520 
Colorado — 2.2%       
City & County of Denver Colorado, Refunding RB,       
Series A, 5.25%, 11/15/36    4,050  4,225,162 
District of Columbia — 1.1%       
District of Columbia Water & Sewer Authority, RB,       
Series A, 5.25%, 10/01/29    2,000  2,158,180 
Florida — 12.8%       
City of Jacksonville Florida, RB, Series B (NPFGC),       
5.13%, 10/01/32    1,500  1,514,790 
County of Miami-Dade Florida, RB, Miami International     
Airport, Series A, AMT:       
(AGM), 5.50%, 10/01/41    930  948,925 
(NPFGC), 6.00%, 10/01/29    3,275  3,310,730 
County of Orange Florida, Refunding RB (AMBAC),       
5.00%, 10/01/29    1,670  1,698,006 
County of Osceola Florida, RB, Series A (NPFGC),       
5.50%, 10/01/27    1,760  1,799,530 
County of Sumter Florida, RB (AMBAC), 5.00%, 6/01/26  1,000  1,021,750 
Florida Housing Finance Corp., Refunding RB,       
Homeowner Mortgage, Series Four, AMT (AGM),       
6.25%, 7/01/22    335  354,976 
Hillsborough County IDA, RB, AMT, National Gypsum Co.:     
Series A, 7.13%, 4/01/30    2,500  2,361,200 
Series B, 7.13%, 4/01/30    3,750  3,541,800 
Polk County School Board, COP, Master Lease, Series A     
(AGM), 5.50%, 1/01/25    3,135  3,207,199 
Santa Rosa County School Board, COP, Refunding,       
Series Two (NPFGC), 5.25%, 2/01/26    1,180  1,243,272 

 

    Par   
Municipal Bonds    (000)  Value 
Florida (concluded)       
South Lake County Hospital District, RB, South Lake       
Hospital Inc., 6.38%, 10/01/34  $ 1,150  $ 1,159,522 
Village Center Community Development District, RB,       
Series A (NPFGC):       
5.38%, 11/01/34    1,995  1,771,460 
5.13%, 11/01/36    1,000  845,490 
      24,778,650 
Georgia — 5.7%       
City of Atlanta Georgia, RB, General, Subordinate Lien,     
Series C (AGM), 5.00%, 1/01/33    3,270  3,306,951 
County of Fulton Georgia, RB (NPFGC), 5.25%, 1/01/35  1,000  1,052,420 
Metropolitan Atlanta Rapid Transit Authority, RB,       
Third Series, 5.00%, 7/01/39    165  173,601 
Municipal Electric Authority of Georgia, Refunding RB,       
Project One, Sub-Series D, 6.00%, 1/01/23    5,600  6,427,288 
      10,960,260 
Illinois — 7.3%       
County of Cook Illinois, GO, Refunding, Series A,       
5.25%, 11/15/33    3,345  3,524,225 
Illinois Finance Authority, Refunding RB:       
Central DuPage Health, Series B, 5.38%, 11/01/39  1,200  1,241,004 
Northwestern Memorial Hospital, Series A,       
6.00%, 8/15/39    4,160  4,551,331 
OSF Healthcare System, Series A, 6.00%, 5/15/39  1,975  1,993,704 
State of Illinois, RB, Build Illinois, Series B,       
5.25%, 6/15/34    2,700  2,790,747 
      14,101,011 
Indiana — 2.6%       
Indiana Municipal Power Agency, RB, Indiana Municipal     
Power Agency, Series B, 6.00%, 1/01/39    4,525  4,923,381 
Kansas — 1.8%       
Kansas Development Finance Authority, Refunding RB,     
Adventist Health, 5.50%, 11/15/29    3,250  3,509,740 
Kentucky — 4.1%       
Kentucky Economic Development Finance Authority,       
Refunding RB, Owensboro Medical Health System,       
Series A, 6.38%, 6/01/40    1,300  1,354,314 
Louisville & Jefferson County Metropolitan Government     
Parking Authority, RB, Series A, 5.75%, 12/01/34    3,200  3,530,208 
Louisville/Jefferson County Metropolitan Government,       
Refunding RB, Jewish Hospital & St. Mary’s HealthCare,     
6.13%, 2/01/37    2,955  3,070,954 
      7,955,476 
Massachusetts — 3.0%       
Massachusetts HFA, HRB, Series B, AMT, 5.50%, 6/01/41  2,535  2,546,255 
Massachusetts HFA, Refunding HRB, Series F, AMT,       
5.70%, 6/01/40    2,100  2,143,071 
Massachusetts State College Building Authority, RB,       
Series A, 5.50%, 5/01/39    1,000  1,085,170 
      5,774,496 
Michigan — 1.9%       
Michigan State Building Authority, Refunding RB,       
Facilities Program, Series I, 6.00%, 10/15/38    1,250  1,363,062 
Royal Oak Hospital Finance Authority Michigan,       
Refunding RB, William Beaumont Hospital,       
8.25%, 9/01/39    1,970  2,352,338 
      3,715,400 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

19



Schedule of Investments (continued)

BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Nebraska — 0.3%       
Lancaster County Hospital Authority No. 1, RB,       
Immanuel Obligation Group, 5.63%, 1/01/40  $ 625  $ 635,244 
Nevada — 9.9%       
City of Las Vegas Nevada, GO, Limited Tax, Performing       
Arts Center, 6.00%, 4/01/34    2,850  3,156,033 
County of Clark Nevada, GO, Refunding, Transportation,     
Series A, 5.00%, 12/01/29    4,800  5,010,816 
County of Clark Nevada, RB:       
Motor Vehicle Fuel Tax, 5.00%, 7/01/28    4,300  4,465,980 
Series B, 5.75%, 7/01/42    6,055  6,458,142 
      19,090,971 
New Jersey — 3.3%       
New Jersey EDA, Refunding RB, New Jersey American       
Water Co., Series A, AMT, 5.70%, 10/01/39    2,250  2,310,570 
New Jersey Transportation Trust Fund Authority, RB,       
Transportation System, Series A, 5.88%, 12/15/38    2,670  2,951,124 
Tobacco Settlement Financing Corp. New Jersey,       
Refunding RB, Series 1A, 4.50%, 6/01/23    1,225  1,121,647 
      6,383,341 
New York — 7.0%       
City of Troy New York, Refunding RB, Rensselaer       
Polytechnic, Series A, 5.13%, 9/01/40    115  116,851 
New York City Transitional Finance Authority, RB,       
Fiscal 2009, Series S-3, 5.25%, 1/15/39    2,500  2,674,200 
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  1,254,096 
New York State Dormitory Authority, ERB, Series B,       
5.25%, 3/15/38    5,700  6,180,510 
Triborough Bridge & Tunnel Authority, RB, General,       
Series A-2, 5.38%, 11/15/38    3,030  3,303,488 
      13,529,145 
North Carolina — 0.9%       
City of Charlotte North Carolina, Refunding RB, Series A,     
5.50%, 7/01/34    350  373,698 
North Carolina Medical Care Commission, RB, Duke       
University Health System, Series A, 5.00%, 6/01/42  1,270  1,299,985 
      1,673,683 
Pennsylvania — 3.6%       
Pennsylvania Economic Development Financing Authority,     
RB, American Water Co. Project, 6.20%, 4/01/39    1,075  1,166,343 
Pennsylvania Turnpike Commission, RB, Sub-Series B,       
5.25%, 6/01/39    5,650  5,818,652 
      6,984,995 
Puerto Rico — 0.3%       
Puerto Rico Housing Finance Authority, Refunding RB,       
Subordinate, Capital Fund Modernization,       
5.13%, 12/01/27    560  565,449 
Texas — 9.5%       
City of Houston Texas, RB, Senior Lien, Series A,       
5.50%, 7/01/39    1,170  1,256,042 
Conroe ISD Texas, GO, School Building, Series A,       
5.75%, 2/15/35    1,800  1,961,712 

 

    Par   
Municipal Bonds    (000)  Value 
Texas (concluded)       
Harris County Health Facilities Development Corp.,       
Refunding RB, Memorial Hermann Healthcare System,     
Series B, 7.25%, 12/01/35  $ 800  $ 910,296 
Lower Colorado River Authority, RB, 5.75%, 5/15/28    1,620  1,727,131 
North Texas Tollway Authority, RB, System, First Tier,       
Series K-1 (AGC), 5.75%, 1/01/38    1,250  1,361,187 
Tarrant County Cultural Education Facilities Finance       
Corp., RB:       
Ascension Health Senior Credit Group,       
5.00%, 11/15/29    3,250  3,347,175 
Scott & White Healthcare, 6.00%, 8/15/45    3,795  4,005,736 
Texas Private Activity Bond Surface Transportation Corp.,     
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39    3,600  3,736,296 
      18,305,575 
Utah — 1.3%       
City of Riverton Utah, RB, IHC Health Services Inc.,       
5.00%, 8/15/41    2,370  2,425,340 
Virginia — 1.0%       
Virginia Public School Authority, RB, School Financing,     
6.50%, 12/01/35    1,700  1,973,785 
West Virginia — 1.1%       
West Virginia EDA, Refunding RB, Appalachian Power Co.,     
Amos Project, Series A, 5.38%, 12/01/38 (b)    2,165  2,167,382 
Wyoming — 1.3%       
County of Sweetwater Wyoming, Refunding RB, Idaho       
Power Co. Project, 5.25%, 7/15/26    2,430  2,586,614 
Total Municipal Bonds — 101.9%      196,863,763 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (c)       
California — 15.2%       
Bay Area Toll Authority, Refunding RB, San Francisco       
Bay Area, Series F-1, 5.63%, 4/01/44    2,680  2,930,977 
California Educational Facilities Authority, RB, University     
of Southern California, Series A, 5.25%, 10/01/39    4,200  4,514,076 
Los Angeles Community College District California, GO,     
Election of 2008, Series A, 6.00%, 8/01/33    7,697  8,683,571 
Los Angeles Unified School District California, GO,       
Series I, 5.00%, 1/01/34    790  806,495 
San Diego Public Facilities Financing Authority,       
Refunding RB, Series B, 5.50%, 8/01/39    8,412  9,074,570 
University of California, RB, Series O, 5.75%, 5/15/34  3,000  3,388,080 
      29,397,769 
Colorado — 1.2%       
Colorado Health Facilities Authority, Refunding RB,       
Catholic Healthcare, Series A, 5.50%, 7/01/34    2,149  2,292,856 
District of Columbia — 3.6%       
District of Columbia, RB, Series A, 5.50%, 12/01/30    2,805  3,176,690 
District of Columbia Water & Sewer Authority, RB,       
Series A, 5.50%, 10/01/39    3,508  3,794,858 
      6,971,548 

 

See Notes to Financial Statements.

20 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments (continued)

BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (c)    (000)  Value 
Florida — 10.0%       
City of Jacksonville Florida, RB, Better Jacksonville       
(NPFGC), 5.00%, 10/01/27  $ 2,700  $ 2,773,818 
Hillsborough County Aviation Authority, RB, Series A, AMT     
(AGC), 5.50%, 10/01/38    3,869  3,955,376 
Lee County Housing Finance Authority, RB,       
Multi-County Program, Series A-2, AMT (Ginnie Mae),     
6.00%, 9/01/40    1,830  2,018,838 
Manatee County Housing Finance Authority, RB, Series A,     
AMT (Ginnie Mae), 5.90%, 9/01/40    1,131  1,209,682 
South Broward Hospital District, RB, Hospital (NPFGC),     
5.63%, 5/01/12    8,500  9,321,780 
      19,279,494 
Illinois — 4.2%       
Illinois Finance Authority, RB, University of Chicago,       
Series B, 6.25%, 7/01/38    5,300  6,137,453 
Illinois State Toll Highway Authority, RB, Series B,       
5.50%, 1/01/33    1,750  1,910,854 
      8,048,307 
Nevada — 6.1%       
Clark County Water Reclamation District, GO:       
Limited Tax, 6.00%, 7/01/38    5,000  5,618,750 
Series B, 5.50%, 7/01/29    5,668  6,273,880 
      11,892,630 
New Hampshire — 1.2%       
New Hampshire Health & Education Facilities Authority,     
Refunding RB, Dartmouth College, 5.25%, 6/01/39  2,159  2,353,082 
New Jersey — 3.4%       
New Jersey State Housing & Mortgage Finance Agency,     
RB, S/F Housing, Series CC, 5.25%, 10/01/29    2,291  2,384,282 
New Jersey Transportation Trust Fund Authority,       
RB, Transportation System, Series A (AGM),       
5.00%, 12/15/32    4,000  4,173,880 
      6,558,162 
New York — 1.4%       
New York City Municipal Water Finance Authority, RB,       
Series FF-2, 5.50%, 6/15/40    2,504  2,796,463 
Ohio — 1.7%       
County of Allen Ohio, Refunding RB, Catholic Healthcare,     
Series A, 5.25%, 6/01/38    3,120  3,206,674 
South Carolina — 1.8%       
South Carolina State Public Service Authority, RB,       
Santee Cooper, Series A, 5.50%, 1/01/38    3,240  3,543,199 
Texas — 5.2%       
City of San Antonio Texas, Refunding RB, Series A,       
5.25%, 2/01/31    3,989  4,342,607 
Harris County Cultural Education Facilities Finance Corp.,     
RB, Hospital, Texas Children’s Hospital Project,       
5.50%, 10/01/39    5,400  5,640,678 
      9,983,285 
Virginia — 1.0%       
Fairfax County IDA Virginia, Refunding RB, Health Care,     
Inova Health System, Series A, 5.50%, 5/15/35    1,749  1,862,772 

 

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (c)  (000)  Value 
Wisconsin — 1.7%     
Wisconsin Health & Educational Facilities Authority,     
Refunding RB, Froedtert & Community Health Inc.,     
5.25%, 4/01/39  $ 3,289  $ 3,383,600 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 57.7%    111,569,841 
Total Long-Term Investments     
(Cost — $293,260,330) — 159.6%    308,433,604 
Short-Term Securities  Shares   
FFI Institutional Tax-Exempt Fund, 0.21% (d)(e)  7,411,011  7,411,011 
Total Short-Term Securities     
(Cost — $7,411,011) — 3.8%    7,411,011 
Total Investments (Cost — $300,671,341*) — 163.4%    315,844,615 
Liabilities in Excess of Other Assets — (2.5)%    (4,807,438) 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (30.1)%    (58,288,083) 
Preferred Shares, at Redemption Value — (30.8)%    (59,478,774) 
Net Assets Applicable to Common Shares — 100.0%    $193,270,320 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 243,165,856 
Gross unrealized appreciation  $ 15,942,898 
Gross unrealized depreciation  (1,508,788) 
Net unrealized appreciation  $ 14,434,110 

 

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

    Unrealized 
Counterparty  Value  Appreciation 
Morgan Stanley & Co.  $8,213,067  $ 43,249 

 

(b) Variable rate security. Rate shown is as of report date.
(c) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(d) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at July 31,  Net  at July 31,   
Affiliate  2009  Activity  2010  Income 
FFI Institutional         
Tax-Exempt Fund  1,400,051  6,010,960  7,411,011  $ 11,428 
(e) Represents the current yield as of report date.     

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

21



Schedule of Investments (concluded)

BlackRock MuniYield Investment Fund (MYF)

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
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 cir-
cumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of July 31, 2010 in determining
the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1    $ 308,433,604    $ 308,433,604 
Short-Term         
Securities  $ 7,411,011      7,411,011 
Total  $ 7,411,011  $ 308,433,604    $ 315,844,615 

 

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

See Notes to Financial Statements.

22 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments July 31, 2010

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey — 128.1%       
Corporate — 1.4%       
New Jersey EDA, Refunding RB, New Jersey American       
Water Co., Series A, AMT, 5.70%, 10/01/39  $ 2,925  $ 3,003,741 
County/City/Special District/School District — 21.0%     
City of Perth Amboy New Jersey, GO, CAB (AGM) (a):       
5.10%, 7/01/33    1,575  1,470,704 
5.10%, 7/01/34    1,925  1,793,041 
County of Hudson New Jersey, COP, Refunding (NPFGC),     
6.25%, 12/01/16    1,500  1,762,110 
Essex County Improvement Authority, Refunding RB,       
Project Consolidation (NPFGC), 5.50%, 10/01/29    5,085  5,818,257 
Hudson County Improvement Authority, RB,       
Harrison Parking Facility Project, Series C (AGC),       
5.38%, 1/01/44    4,800  5,143,584 
Hudson County Improvement Authority, Refunding RB,       
Hudson County Lease Project (NPFGC),       
5.38%, 10/01/24    4,500  4,529,655 
Middlesex County Improvement Authority, RB:       
Golf Course Projects, 5.25%, 6/01/22    1,455  1,619,051 
Senior, Heldrich Center Hotel, Series A,       
5.00%, 1/01/20    655  373,396 
Monmouth County Improvement Authority, RB,       
Governmental Loan (AMBAC):       
5.00%, 12/01/11 (b)    2,085  2,216,731 
5.00%, 12/01/15    1,215  1,255,277 
5.00%, 12/01/16    1,280  1,316,390 
Morristown Parking Authority, RB (NPFGC),       
4.50%, 8/01/37    585  588,141 
Newark Housing Authority, Refunding RB, Newark       
Redevelopment Project (NPFGC), 4.38%, 1/01/37    2,875  2,770,609 
Salem County Improvement Authority, RB, Finlaw Street     
Office Building (AGM):       
5.38%, 8/15/28    500  516,390 
5.25%, 8/15/38    500  501,155 
Salem County Utilities Authority, Refunding RB,       
Atlantic City Electric, Series A, 4.88%, 6/01/29    4,550  4,614,292 
South Jersey Port Corp., Refunding RB:       
4.75%, 1/01/18    4,280  4,444,309 
4.85%, 1/01/19    2,485  2,575,553 
5.00%, 1/01/20    2,000  2,068,020 
      45,376,665 
Education — 17.3%       
New Jersey EDA, RB, School Facilities Construction,       
Series CC-2:       
5.00%, 12/15/31    1,700  1,800,470 
5.00%, 12/15/32    1,300  1,370,395 
New Jersey Educational Facilities Authority, RB:       
Georgian Court College Project, Series C,       
6.50%, 7/01/13 (b)    2,000  2,342,880 
Montclair State University, Series J, 5.25%, 7/01/38  1,140  1,192,520 
Rider University, Series A (Radian), 5.50%, 7/01/23  1,255  1,293,679 
Rider University, Series A (Radian), 5.25%, 7/01/34  1,450  1,394,567 
Rider University, Series C (Radian), 5.00%, 7/01/37  1,750  1,651,177 
New Jersey Educational Facilities Authority, Refunding RB:     
College of New Jersey, Series D (AGM),       
5.00%, 7/01/35    6,115  6,386,995 
Georgian Court University, Series D, 5.25%, 7/01/37  1,000  984,370 
Montclair State University, Series L (NPFGC),       
5.00%, 7/01/14 (b)    5,305  6,131,890 
Ramapo College, Series I (AMBAC), 4.25%, 7/01/36  810  756,370 
Rider University (Radian), 5.00%, 7/01/17    1,000  1,025,710 
Rowan University, Series B (AGC), 5.00%, 7/01/24  1,800  1,968,354 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (continued)       
Education (concluded)       
New Jersey Educational Facilities Authority, Refunding       
RB, University of Medicine & Dentistry, Series B       
(concluded):       
7.13%, 12/01/23  $ 1,300  $ 1,527,968 
7.50%, 12/01/32    1,625  1,865,825 
New Jersey Higher Education Assistance Authority,       
Refunding RB, Series 1A:       
5.00%, 12/01/25    1,035  1,051,922 
5.00%, 12/01/26    645  653,121 
5.25%, 12/01/32    900  918,576 
New Jersey State Higher Education Assistance Authority,     
RB, Series A, AMT (AMBAC), 5.30%, 6/01/17    3,170  3,174,216 
      37,491,005 
Health — 18.3%       
New Jersey EDA, RB:       
CAB, St. Barnabas Health, Series A (NPFGC),       
6.26%, 7/01/24 (c)    3,850  1,421,074 
Masonic Charity Foundation of New Jersey,       
5.25%, 6/01/24    1,425  1,452,902 
Masonic Charity Foundation of New Jersey,       
5.25%, 6/01/32    685  670,142 
New Jersey EDA, Refunding RB, First Mortgage,       
Winchester, Series A:       
5.75%, 11/01/24    2,500  2,522,225 
5.80%, 11/01/31    1,000  1,001,010 
New Jersey Health Care Facilities Financing Authority, RB:     
Children’s Specialized Hospital, Series A,       
5.50%, 7/01/36    1,540  1,502,547 
Health System, Catholic Health East, Series A,       
5.38%, 11/15/12 (b)    1,100  1,220,153 
Hospital Asset Transformation Program, Series A,       
5.25%, 10/01/38    1,300  1,318,005 
Hunterdon Medical Center, Series A, 5.13%, 7/01/35  1,950  1,897,760 
Meridian Health, Series I (AGC), 5.00%, 7/01/38  995  1,011,875 
Pascack Valley Hospital Association,       
6.63%, 7/01/36 (d)(e)    1,845  18 
Robert Wood University (AMBAC), 5.70%, 7/01/20  4,000  4,005,200 
Southern Ocean County Hospital (Radian),       
5.13%, 7/01/31    2,000  1,784,180 
Virtua Health (AGC), 5.50%, 7/01/38    2,500  2,668,650 
New Jersey Health Care Facilities Financing Authority,       
Refunding RB:       
Atlantic City Medical Center, 6.25%, 7/01/12 (b)  500  554,135 
Atlantic City Medical System, 6.25%, 7/01/17    520  549,182 
Atlantic City Medical System, 5.75%, 7/01/25    520  534,212 
CAB, St. Barnabas Health, Series B,       
5.90%, 7/01/30 (c)    2,000  453,500 
CAB, St. Barnabas Health, Series B,       
5.68%, 7/01/36 (c)    500  68,810 
CAB, St. Barnabas Health, Series B,       
5.17%, 7/01/37 (c)    13,250  1,684,738 
Capital Health System Obligation Group, Series A,     
5.75%, 7/01/13 (b)    1,650  1,869,318 
Meridian Health System Obligation Group (AGM),       
5.25%, 7/01/19    1,500  1,501,740 
Meridian Health System Obligation Group (AGM),       
5.38%, 7/01/24    2,250  2,251,777 
Meridian Health System Obligation Group (AGM),       
5.25%, 7/01/29    2,195  2,195,680 
South Jersey Hospital, 5.00%, 7/01/36    385  380,573 
South Jersey Hospital, 5.00%, 7/01/46    1,650  1,598,586 
St. Barnabas Health Care System, Series A,       
5.00%, 7/01/29    4,155  3,442,334 
      39,560,326 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

23



Schedule of Investments (continued)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New Jersey (continued)     
Housing — 16.2%     
New Jersey State Housing & Mortgage Finance     
Agency, RB:     
Capital Fund Program, Series A (AGM),     
4.70%, 11/01/25  $ 6,950  $ 7,097,896 
Home Buyer, Series CC, AMT (NPFGC),     
5.80%, 10/01/20  4,515  4,722,103 
S/F Housing, Series CC, 5.00%, 10/01/34  3,455  3,498,429 
S/F Housing, Series U, AMT, 4.95%, 10/01/32  700  699,951 
S/F Housing, Series X, AMT, 4.85%, 4/01/16  3,605  3,795,308 
S/F Housing, Series X, AMT, 5.05%, 4/01/18  600  628,416 
Series A, 4.75%, 11/01/29  2,305  2,318,576 
Series A, AMT (FGIC), 4.90%, 11/01/35  1,365  1,326,371 
Series AA, 6.50%, 10/01/38  1,735  1,900,328 
New Jersey State Housing & Mortgage Finance     
Agency, Refunding RB, S/F Housing, Series T, AMT,     
4.65%, 10/01/32  4,945  4,811,238 
Newark Housing Authority, RB, South Ward Police     
Facility (AGC):     
5.75%, 12/01/30  1,115  1,203,453 
6.75%, 12/01/38  2,670  3,053,519 
    35,055,588 
State — 31.9%     
Garden State Preservation Trust, RB (AGM):     
CAB, Series B, 5.12%, 11/01/23 (c)  6,860  3,981,819 
CAB, Series B, 5.25%, 11/01/28 (c)  4,540  1,968,862 
Election of 2005, Series A, 5.80%, 11/01/22  4,300  5,121,945 
New Jersey EDA, RB:     
Department of Human Services, Pooled,     
5.00%, 7/01/12  220  236,185 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/24  1,415  1,546,878 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/25  2,000  2,170,740 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/33  14,000  14,267,120 
School Facilities Construction, Series L (AGM),     
5.00%, 3/01/30  5,800  6,025,852 
School Facilities Construction, Series O,     
5.25%, 3/01/23  2,400  2,614,872 
School Facilities Construction, Series P,     
5.00%, 9/01/15  3,000  3,400,500 
School Facilities Construction, Series P,     
5.25%, 9/01/16  2,710  3,093,844 
School Facilities Construction, Series Z (AGC),     
5.50%, 12/15/34  3,665  4,031,720 
School Facilities Construction, Series Z (AGC),     
6.00%, 12/15/34  3,600  4,094,748 
New Jersey EDA, Refunding RB:     
New Jersey-American Water Co. Project, Series B,     
AMT, 5.60%, 11/01/34  2,430  2,499,668 
School Facilities Construction, Series AA,     
5.50%, 12/15/29  3,300  3,638,052 
New Jersey Transportation Trust Fund Authority, RB,     
Transportation System:     
CAB, Series C (AMBAC), 5.05%, 12/15/35 (c)  4,140  928,229 
Series A (AGC), 5.63%, 12/15/28  1,250  1,404,638 
New Jersey Transportation Trust Fund Authority,     
Refunding RB, Transportation System, Series B     
(NPFGC), 5.50%, 12/15/21  5,865  6,928,618 
State of New Jersey, COP, Equipment Lease Purchase,     
Series A, 5.25%, 6/15/28  1,100  1,155,649 
    69,109,939 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (concluded)       
Tobacco — 2.7%       
Tobacco Settlement Financing Corp. New Jersey,       
Refunding RB, Series 1A, 4.50%, 6/01/23  $ 6,435  $ 5,892,079 
Transportation — 14.4%       
New Jersey State Turnpike Authority, RB:       
Growth & Income Securities, Series B (AMBAC),       
5.22%, 1/01/15 (a)    4,870  3,975,089 
Series E, 5.25%, 1/01/40    5,475  5,791,400 
New Jersey Transportation Trust Fund Authority, RB,       
Transportation System, Series A:       
5.88%, 12/15/38    3,050  3,371,134 
6.00%, 12/15/38    2,900  3,243,476 
(AGC), 5.50%, 12/15/38    1,000  1,099,830 
New Jersey Transportation Trust Fund Authority,       
Refunding RB, Transportation System, Series A,       
5.50%, 12/15/21    3,525  4,164,259 
Port Authority of New York & New Jersey, RB,       
Consolidated, 93rd Series, 6.13%, 6/01/94    5,000  6,025,350 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.75%, 11/01/30  3,300  3,538,227 
      31,208,765 
Utilities — 4.9%       
Cumberland County Improvement Authority, RB, Series A,     
5.00%, 1/01/30    1,210  1,216,558 
New Jersey EDA, Refunding RB, United Water of       
New Jersey Inc., Series B (AMBAC), 4.50%, 11/01/25  4,500  4,755,870 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
(NPFGC), 4.87%, 9/01/31 (c)    6,000  1,848,660 
Union County Utilities Authority, Refunding RB, Senior       
Lease, Ogden Martin, Series A, AMT (AMBAC):       
5.38%, 6/01/17    1,585  1,586,490 
5.38%, 6/01/18    1,175  1,175,846 
      10,583,424 
Total Municipal Bonds in New Jersey      277,281,532 
Pennsylvania — 0.7%       
Transportation — 0.7%       
Delaware River Port Authority, RB, Series D,       
5.00%, 1/01/40    1,535  1,556,828 
Puerto Rico — 7.5%       
County/City/Special District/School District — 1.7%     
Puerto Rico Sales Tax Financing Corp., Refunding RB,       
First Sub-Series C, 6.00%, 8/01/39    3,320  3,584,239 
Housing — 0.9%       
Puerto Rico Housing Finance Authority, Refunding RB,       
Subordinate, Capital Fund Modernization,       
5.13%, 12/01/27    1,975  1,994,217 
State — 2.9%       
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 5.75%, 8/01/37    6,000  6,278,760 
Transportation — 1.5%       
Puerto Rico Highway & Transportation Authority,       
Refunding RB, Series CC (AGC), 5.50%, 7/01/31    3,000  3,225,570 
Utilities — 0.5%       
Puerto Rico Electric Power Authority, RB, Series WW,       
5.50%, 7/01/38    1,000  1,022,480 
Total Municipal Bonds in Puerto Rico      16,105,266 

 

See Notes to Financial Statements.

24 ANNUAL REPORT

JULY 31, 2010



Schedule of Investments (concluded)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
U.S. Virgin Islands — 1.6%       
Corporate — 1.6%       
United States Virgin Islands, Refunding RB,       
Senior Secured, Hovensa Coker Project, AMT,       
6.50%, 7/01/21  $ 3,500  $ 3,553,970 
Total Municipal Bonds – 137.9%      298,497,596 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (f)       
New Jersey — 6.9%       
State — 3.1%       
Garden State Preservation Trust, RB, Election of 2005,     
Series A (AGM), 5.75%, 11/01/28    5,460  6,705,098 
Transportation — 3.8%       
New Jersey Transportation Trust Fund Authority, RB,       
Transportation System, Series A (AGM), 5.00%, 12/15/32  4,100  4,278,227 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  3,764  3,881,847 
      8,160,074 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 6.9%      14,865,172 
Total Long-Term Investments       
(Cost — $303,390,835) — 144.8%      313,362,768 
Short-Term Securities    Shares   
BIF New Jersey Municipal Money Fund,       
0.04% (g)(h)  11,162,403  11,162,403 
Total Short-Term Securities       
(Cost — $11,162,403) — 5.1%      11,162,403 
Total Investments (Cost — $314,553,238*) — 149.9%    324,525,171 
Other Assets Less Liabilities — 1.3%      2,775,909 
Liability for Trust Certificates, Including Interest       
Expense and Fees Payable — (4.0)%      (8,658,754) 
Preferred Shares, at Redemption Value — (47.2)%      (102,208,846) 
Net Assets Applicable to Common Shares — 100.0%    $216,433,480 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 305,646,530 
Gross unrealized appreciation  $ 15,798,771 
Gross unrealized depreciation  (5,573,831) 
Net unrealized appreciation  $ 10,224,940 

 

(a) 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 reflects the current
yield as of report date.
(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) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Non-income producing security.

(f) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(g) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at July 31,  Net  at July 31,   
Affiliate  2009  Activity  2010  Income 
BIF New Jersey         
Municipal         
Money Fund  3,181,516  7,980,887  11,162,403  $ 3,090 

 

(h) 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.
This definition 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, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
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 inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of July 31, 2010 in determining
the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1    $ 313,362,768    $ 313,362,768 
Short-Term         
Securities  $ 11,162,403      11,162,403 
Total  $ 11,162,403  $ 313,362,768    $ 324,525,171 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

25



Statements of Assets and Liabilities           
BlackRock
  Muni New York  BlackRock  BlackRock    BlackRock 
  Intermediate  MuniYield  MuniYield  BlackRock  MuniYield 
  Duration  Arizona  California  MuniYield  New Jersey 
  Fund, Inc.  Fund, Inc.  Fund, Inc.  Investment Fund  Fund, Inc. 
July 31, 2010  (MNE)  (MZA)  (MYC)  (MYF)  (MYJ) 
Assets           
Investments at value — unaffiliated1  $ 90,350,008  $ 98,653,872  $ 532,396,309  $ 308,433,604  $ 313,362,768 
Investments at value — affiliated2  1,976,046  3,274,527  12,364,497  7,411,011  11,162,403 
Cash pledged as collateral for financial futures contracts    18,720  41,000     
Interest receivable  931,544  689,100  6,469,893  3,825,526  2,820,189 
Investments sold receivable    697,051  9,749,293  3,655,796  1,168,429 
Prepaid expenses  10,664  3,878  18,177  10,731  11,690 
Total assets  93,268,262  103,337,148  561,039,169  323,336,668  328,525,479 
Accrued Liabilities           
Investments purchased payable  1,191,022    20,974,275  11,071,742   
Income dividends payable — Common Shares  243,973  316,916  1,533,259  1,016,852  1,001,329 
Investment advisory fees payable  39,865  44,573  229,661  135,011  139,426 
Interest expense and fees payable  652  314  69,201  43,434  5,053 
Other affiliates payable  569  645  3,021  1,938  2,039 
Officer’s and Directors’ fees payable  127  108  513  429  460 
Margin variation payable    8,625  17,969     
Other accrued expenses payable  23,911  43,273  99,266  73,519  81,145 
Total accrued liabilities  1,500,119  414,454  22,927,165  12,342,925  1,229,452 
Other Liabilities           
Trust certificates3  1,125,000  1,500,000  117,818,654  58,244,649  8,653,701 
Total Liabilities  2,625,119  1,914,454  140,745,819  70,587,574  9,883,153 
Preferred Shares at Redemption Value           
$25,000 per share liquidation preference, plus unpaid dividends4,5  29,633,534  38,804,568  105,966,974  59,478,774  102,208,846 
Net Assets Applicable to Common Shareholders  $ 61,009,609  $ 62,618,126  $ 314,326,376  $ 193,270,320  $ 216,433,480 
Net Assets Applicable to Common Shareholders Consist of           
Paid-in capital6,7  $ 59,630,112  $ 60,557,973  $ 301,598,405  $ 188,893,413  $ 204,494,347 
Undistributed net investment income  906,594  904,599  4,957,829  3,484,911  4,588,066 
Accumulated net realized loss  (2,251,796)  (1,307,475)  (6,588,706)  (14,281,278)  (2,620,866) 
Net unrealized appreciation/depreciation  2,724,699  2,463,029  14,358,848  15,173,274  9,971,933 
Net Assets Applicable to Common Shareholders  $ 61,009,609  $ 62,618,126  $ 314,326,376  $ 193,270,320  $ 216,433,480 
Net asset value per Common Share  $ 14.50  $ 13.73  $ 14.76  $ 14.26  $ 15.24 
1 Investments at cost — unaffiliated  $ 87,625,309  $ 96,164,942  $ 517,983,890  $ 293,260,330  $ 303,390,835 
2 Investments at cost — affiliated  $ 1,976,046  $ 3,274,527  $ 12,364,497  $ 7,411,011  $ 11,162,403 
3 Represents short-term floating rate certificates issued by tender option           
bond trusts.           
4 Preferred Shares outstanding:           
Par value $0.05 per share        2,379  3,349 
Par value $0.10 per share  1,185  1,552  4,238    739 
5 Preferred Shares authorized  1,240  1,612  7,000  1 million  4,760 
6 Common Shares outstanding, $0.10 par value  4,206,439  4,559,952  21,295,255  13,558,024  14,203,242 
7 Common Shares authorized  200 million  200 million  200 million  unlimited  200 million 

 

See Notes to Financial Statements.

26 ANNUAL REPORT

JULY 31, 2010



Statements of Operations           
    BlackRock
  Muni New York  BlackRock  BlackRock    BlackRock 
                       Intermediate  MuniYield  MuniYield  BlackRock  MuniYield 
                     Duration  Arizona  California  MuniYield  New Jersey 
                      Fund, Inc.  Fund, Inc.  Fund, Inc.  Investment Fund  Fund, Inc. 
Year Ended July 31, 2010                     (MNE)  (MZA)  (MYC)  (MYF)  (MYJ) 
Investment Income           
Interest  $ 4,342,605  $ 4,987,666  $ 23,567,896  $ 15,299,342  $ 16,273,490 
Income — affiliated  119    2,491  11,428  3,090 
Total income  4,342,724  4,987,666  23,570,387  15,310,770  16,276,580 
Expenses           
Investment advisory  487,682  503,718  2,445,937  1,507,528  1,598,025 
Commissions for Preferred Shares  44,983  55,809  157,843  88,931  152,307 
Professional  45,695  42,597  59,607  54,626  53,594 
Transfer agent  22,238  36,081  43,442  43,624  45,961 
Accounting services  18,779  27,138  152,624  90,941  69,322 
Printing  10,430  15,932  55,097  28,769  36,780 
Registration  9,261  1,971  9,330  9,330  9,330 
Custodian  7,903  7,426  23,669  14,422  17,984 
Officer and Directors  6,518  6,739  34,181  20,874  23,509 
Miscellaneous  46,391  49,329  77,762  61,871  84,146 
Total expenses excluding interest expense and fees  699,880  746,740  3,059,492  1,920,916  2,090,958 
Interest expense and fees1  4,711  12,130  571,244  437,942  47,546 
Total expenses  704,591  758,870  3,630,736  2,358,858  2,138,504 
Less fees waived by advisor  (46,481)  (5,049)  (19,738)  (4,697)  (24,298) 
Total expenses after fees waived  658,110  753,821  3,610,998  2,354,161  2,114,206 
Net investment income  3,684,614  4,233,845  19,959,389  12,956,609  14,162,374 
Realized and Unrealized Gain (Loss)           
Net realized gain (loss) from:           
Investments  799,469  (253,694)  (2,144,553)  2,503,949  (115,674) 
Financial futures contracts  3,982  6,527  (111,843)  21,850  20,136 
  803,451  (247,167)  (2,256,396)  2,525,799  (95,538) 
Net change in unrealized appreciation/depreciation on:           
Investments  5,138,910  6,081,049  28,226,876  13,527,347  14,265,738 
Financial futures contracts    (25,901)  (53,571)     
  5,138,910  6,055,148  28,173,305  13,527,347  14,265,738 
Total realized and unrealized gain  5,942,361  5,807,981  25,916,909  16,053,146  14,170,200 
Dividends to Preferred Shareholders From           
Net investment income  (436,446)  (263,509)  (674,559)  (333,344)  (622,979) 
Net Increase in Net Assets Applicable to           
Common Shareholders Resulting from Operations  $ 9,190,529  $ 9,778,317  $ 45,201,739  $ 28,676,411  $ 27,709,595 
1 Related to tender option bond trusts.           

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

27



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:  2010  2009 
Operations     
Net investment income  $ 3,684,614  $ 3,678,440 
Net realized gain (loss)  803,451  (2,160,349) 
Net change in unrealized appreciation/depreciation  5,138,910  (174,373) 
Dividends to Preferred Shareholders from net investment income  (436,446)  (835,785) 
Net increase in net assets applicable to Common Shareholders resulting from operations  9,190,529  507,933 
Dividends to Common Shareholders From     
Net investment income  (2,822,521)  (2,696,327) 
Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  6,368,008  (2,188,394) 
Beginning of year  54,641,601  56,829,995 
End of year  $ 61,009,609  $ 54,641,601 
Undistributed net investment income  $ 906,594  $ 499,055 
  BlackRock MuniYield Arizona Fund, Inc. (MZA) 
  Year Ended July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  2010  2009 
Operations     
Net investment income  $ 4,233,845  $ 4,330,049 
Net realized loss  (247,167)  (502,704) 
Net change in unrealized appreciation/depreciation  6,055,148  (1,630,717) 
Dividends to Preferred Shareholders from net investment income  (263,509)  (856,443) 
Net increase in net assets applicable to Common Shareholders resulting from operations  9,778,317  1,340,185 
Dividends to Common Shareholders From     
Net investment income  (3,721,205)  (3,202,649) 
Capital Share Transactions     
Reinvestment of common dividends  112,033  93,565 
Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  6,169,145  (1,768,899) 
Beginning of year  56,448,981  58,217,880 
End of year  $ 62,618,126  $ 56,448,981 
Undistributed net investment income  $ 904,599  $ 618,220 

 

See Notes to Financial Statements.

28 ANNUAL REPORT

JULY 31, 2010



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:  2010  2009 
Operations     
Net investment income  $ 19,959,389  $ 19,437,721 
Net realized loss  (2,256,396)  (3,732,748) 
Net change in unrealized appreciation/depreciation  28,173,305  (3,452,968) 
Dividends to Preferred Shareholders from net investment income  (674,559)  (2,734,089) 
Net increase in net assets applicable to Common Shareholders resulting from operations  45,201,739  9,517,916 
Dividends to Common Shareholders From     
Net investment income  (17,680,853)  (14,714,808) 
Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  27,520,886  (5,196,892) 
Beginning of year  286,805,490  292,002,382 
End of year  $314,326,376  $ 286,805,490 
Undistributed net investment income  $ 4,957,829  $ 3,354,000 
  BlackRock MuniYield Investment Fund (MYF) 
  Year Ended July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  2010  2009 
Operations     
Net investment income  $ 12,956,609  $ 12,962,890 
Net realized gain (loss)  2,525,799  (12,407,592) 
Net change in unrealized appreciation/depreciation  13,527,347  2,135,373 
Dividends to Preferred Shareholders from net investment income  (333,344)  (1,840,008) 
Net increase in net assets applicable to Common Shareholders resulting from operations  28,676,411  850,663 
Dividends to Common Shareholders From     
Net investment income  (11,015,894)  (9,555,926) 
Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  17,660,517  (8,705,263) 
Beginning of year  175,609,803  184,315,066 
End of year  $193,270,320  $ 175,609,803 
Undistributed net investment income  $ 3,484,911  $ 1,887,727 

 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

29



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:  2010  2009 
Operations     
Net investment income  $ 14,162,374  $ 13,853,962 
Net realized loss  (95,538)  (1,310,444) 
Net change in unrealized appreciation/depreciation  14,265,738  (3,427,395) 
Dividends to Preferred Shareholders from net investment income  (622,979)  (2,158,107) 
Net increase in net assets applicable to Common Shareholders resulting from operations  27,709,595  6,958,016 
Dividends to Common Shareholders From     
Net investment income  (12,015,943)  (10,240,537) 
Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  15,693,652  (3,282,521) 
Beginning of year  200,739,828  204,022,349 
End of year  $216,433,480  $ 200,739,828 
Undistributed net investment income  $ 4,588,066  $ 3,064,620 

 

See Notes to Financial Statements.

30 ANNUAL REPORT

JULY 31, 2010



Statements of Cash Flows     
  BlackRock   
  MuniYield  BlackRock 
  California  MuniYield 
  Fund Inc.  Investment Fund 
Year Ended July 31, 2010  (MYC)  (MYF) 
Cash Provided by (Used for) Operating Activities     
Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ 45,876,298  $ 29,009,755 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:     
Decrease in interest receivable  241,385  145,791 
Increase in margin variation payable  17,969   
Decrease in prepaid expenses  21,656  16,607 
Decrease in interest expense and fees payable  (160,877)  (31,371) 
Increase in Officer’s and Directors’ fees payable  52  40 
Increase in other affiliates payable  256  156 
Increase in investment advisory fees payable  23,099  7,451 
Increase in other accrued expenses payable  29,189  15,216 
Increase in cash pledged as collateral for financial futures contracts  (41,000)   
Net realized and unrealized gain on investments  (26,082,323)  (16,031,296) 
Amortization of premium and discount on investments  618,347  382,872 
Proceeds from sales of long-term investments  191,511,827  121,989,432 
Purchases of long-term investments  (232,567,607)  (128,023,900) 
Net purchases of short-term securities  (4,756,800)  (4,010,960) 
Net cash provided by (used for) operating activities  (25,268,529)  3,469,793 
Cash Provided by (Used for) Financing Activities     
Cash receipts from trust certificates  47,686,001  14,372,075 
Cash payments for trust certificates  (4,243,357)  (6,925,006) 
Cash dividends paid to Common Shareholders  (17,585,024)  (10,785,407) 
Cash dividends paid to Preferred Shareholders  (675,612)  (334,312) 
Cash provided by (used for) financing activities  25,182,008  (3,672,650) 
Cash     
Net decrease in cash  (86,521)  (202,857) 
Cash at beginning of year  86,521  202,857 
Cash at end of year     
Cash Flow Information     
Cash paid during the year for interest  $ 732,121  $ 469,313 

 

A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average
total assets.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

31



Financial Highlights    BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) 
      Period       
      June 1,       
      2008       
  Year Ended July 31,      Year Ended May 31, 
      to July 31,       
  2010  2009  2008  2008  2007  2006 
Per Share Operating Performance             
Net asset value, beginning of period  $ 12.99  $ 13.51  $ 14.05  $ 14.91  $ 14.66  $ 15.05 
Net investment income1  0.88  0.87  0.14  0.91  0.90  0.87 
Net realized and unrealized gain (loss)  1.40  (0.55)  (0.53)  (0.86)  0.24  (0.37) 
Dividends to Preferred Shareholders from net investment income  (0.10)  (0.20)  (0.04)  (0.27)  (0.25)  (0.20) 
Net increase (decrease) from investment operations  2.18  0.12  (0.43)  (0.22)  0.89  0.30 
Dividends to Common Shareholders from net investment income  (0.67)  (0.64)  (0.11)  (0.64)  (0.64)  (0.69) 
Net asset value, end of period  $ 14.50  $ 12.99  $ 13.51  $ 14.05  $ 14.91  $ 14.66 
Market price, end of period  $ 13.54  $ 11.60  $ 12.12  $ 12.81  $ 13.93  $ 13.03 
Total Investment Return2             
Based on net asset value  17.67%  2.26%  (3.01)%3  (1.10)%  6.57%  2.52% 
Based on market price  23.05%  1.79%  (4.56)%3  (3.48)%  12.02%  2.03% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses4  1.20%  1.33%  1.39%5  1.28%  1.31%  1.33% 
Total expenses after fees waived and paid indirectly4  1.12%  1.15%  1.15%5  1.04%  1.08%  1.10% 
Total expenses after fees waived and paid indirectly and excluding             
interest expense and fees4,6  1.12%  1.11%  1.11%5  1.04%  1.08%  1.10% 
Net investment income4  6.30%  7.01%  6.36%5  6.31%  6.01%  5.89% 
Dividends to Preferred Shareholders  0.75%  1.59%  1.84%5  1.89%  1.66%  1.32% 
Net investment income to Common Shareholders  5.55%  5.42%  4.52%5  4.42%  4.35%  4.57% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 61,010  $ 54,642  $ 56,830  $ 59,101  $ 62,701  $ 61,672 
Preferred Shares outstanding at $25,000 liquidation preference,             
end of period (000)  $ 29,625  $ 29,625  $ 29,625  $ 31,000  $ 31,000  $ 31,000 
Portfolio turnover  27%  32%  2%  21%  29%  49% 
Asset coverage, end of period per $1,000  $ 3,0607  $ 2,8447  $ 2,9187  $ 2,9067  $ 3,0237  $ 2,989 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized. Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratio of the total expenses, total expenses after
fees waived and paid indirectly, total expenses after fees waived and fees paid indirectly and excluding interest expense and fees, net investment income and net investment income to
Common Shareholders would have been 1.79%, 1.55%, 1.50%, 5.96% and 4.12%, respectively.
6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
7 Asset coverage per Preferred Share at $25,000 liquidation preference for the periods ended July 2010, July 2009, July 2008, May 2008 and May 2007 are $76,492, $71,119,
$72,970, $72,676 and $75,573, respectively.

See Notes to Financial Statements.

32 ANNUAL REPORT

JULY 31, 2010



Financial Highlights      BlackRock MuniYield Arizona Fund, Inc. (MZA) 
      Period       
      November 1,       
      2007       
  Year Ended July 31,      Year Ended October 31, 
      to July 31,       
  2010  2009  2008  2007  2006  2005 
Per Share Operating Performance             
Net asset value, beginning of period  $ 12.40  $ 12.81  $ 13.96  $ 14.53  $ 14.39  $ 15.04 
Net investment income1  0.93  0.95  0.72  0.95  0.98  0.97 
Net realized and unrealized gain (loss)  1.28  (0.47)  (1.00)  (0.46)  0.36  (0.49) 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.06)  (0.19)  (0.19)  (0.29)  (0.26)  (0.14) 
Net realized gain      (0.05)  (0.02)  (0.02)  (0.00)2 
Net increase (decrease) from investment operations  2.15  0.29  (0.52)  0.18  1.06  0.34 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.82)  (0.70)  (0.51)  (0.69)  (0.80)  (0.92) 
Net realized gain      (0.12)  (0.06)  (0.12)  (0.02) 
Total dividends and distributions to Common Shareholders  (0.82)  (0.70)  (0.63)  (0.75)  (0.92)  (0.94) 
Capital charges with respect to issuance of Preferred Shares          0.003  (0.05) 
Net asset value, end of period  $ 13.73  $ 12.40  $ 12.81  $ 13.96  $ 14.53  $ 14.39 
Market price, end of period  $ 13.67  $ 12.85  $ 13.94  $ 13.66  $ 14.79  $ 16.03 
Total Investment Return4             
Based on net asset value  17.75%  3.27%  (3.79)%5  1.29%  7.47%  1.91% 
Based on market price  13.13%  (1.66)%  6.99%5  (2.63)%  (1.80)%  13.07% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses6  1.25%  1.46%  1.61%7  1.76%  1.71%  1.52% 
Total expenses after fees waived and paid indirectly6  1.24%  1.42%  1.59%7  1.75%  1.70%  1.51% 
Total expenses after fees waived and paid indirectly and excluding             
interest expense and fees6,8  1.22%  1.36%  1.40%7  1.37%  1.33%  1.20% 
Net investment income6  6.99%  8.16%  7.19%7  6.65%  6.90%  6.54% 
Dividends to Preferred Shareholders  0.44%  1.61%  1.94%7  2.04%  1.83%  0.91% 
Net investment income to Common Shareholders  6.56%  6.55%  5.25%7  4.61%  5.07%  5.63% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 62,618  $ 56,449  $ 58,218  $ 63,228  $ 65,611  $ 64,630 
Preferred Shares outstanding at $25,000 liquidation preference,             
end of period (000)  $ 38,800  $ 38,800  $ 40,300  $ 40,300  $ 40,300  $ 40,300 
Portfolio turnover  25%  39%  13%  31%  31%  28% 
Asset coverage per Preferred Share at $25,000 liquidation preference,             
end of period  $ 65,350  $ 61,375  $ 61,122  $ 64,232  $ 65,708  $ 65,098 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.
8 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option
bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

33



Financial Highlights      BlackRock MuniYield California Fund, Inc. (MYC) 
      Period       
      November 1,       
      2007       
  Year Ended July 31,      Year Ended October 31, 
      to July 31,       
  2010  2009  2008  2007  2006  2005 
Per Share Operating Performance             
Net asset value, beginning of period  $ 13.47  $ 13.71  $ 14.60  $ 15.11  $ 14.73  $ 15.27 
Net investment income1  0.94  0.91  0.69  0.93  0.96  0.93 
Net realized and unrealized gain (loss)  1.21  (0.33)  (0.88)  (0.49)  0.37  (0.46) 
Dividends to Preferred Shareholders from net investment income  (0.03)  (0.13)  (0.20)  (0.29)  (0.25)  (0.13) 
Net increase (decrease) from investment operations  2.12  0.45  (0.39)  0.15  1.08  0.34 
Dividends to Common Shareholders from net investment income  (0.83)  (0.69)  (0.50)  (0.66)  (0.70)  (0.86) 
Capital charges with respect to issuance of Preferred Shares          0.002  (0.02) 
Net asset value, end of period  $ 14.76  $ 13.47  $ 13.71  $ 14.60  $ 15.11  $ 14.73 
Market price, end of period  $ 14.44  $ 12.44  $ 13.07  $ 13.25  $ 14.00  $ 13.37 
Total Investment Return3             
Based on net asset value  16.59%  4.64%  (2.55)%4  1.36%  8.03%  2.59% 
Based on market price  23.51%  1.37%  2.37%4  (0.72)%  10.28%  (1.46)% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses5  1.19%  1.49%  1.49%6  1.77%  1.52%  1.13% 
Total expenses after fees waived5  1.18%  1.47%  1.45%6  1.75%  1.51%  1.13% 
Total expenses after fees waived and excluding interest expense and fees5,7  0.99%  1.08%  1.06%6  1.06%  1.06%  0.98% 
Net investment income5  6.53%  7.07%  6.24%6  6.29%  6.51%  6.16% 
Dividends to Preferred Shareholders  0.22%  0.99%  1.83%6  1.93%  1.70%  0.84% 
Net investment income to Common Shareholders  6.31%  6.08%  4.41%6  4.36%  4.81%  5.32% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 314,326  $ 286,805  $ 292,002  $ 310,934  $ 321,701  $ 313,708 
Preferred Shares outstanding at $25,000 liquidation preference,             
end of period (000)  $ 105,950  $ 105,950  $ 126,500  $ 175,000  $ 175,000  $ 175,000 
Portfolio turnover  41%  38%  30%  41%  39%  53% 
Asset coverage per Preferred Share at $25,000 liquidation preference,             
end of period  $ 99,173  $ 92,679  $ 82,724  $ 69,452  $ 70,985  $ 69,818 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option
bond trusts.

See Notes to Financial Statements.

34 ANNUAL REPORT

JULY 31, 2010



Financial Highlights      BlackRock MuniYield Investment Fund (MYF) 
      Period       
      November 1,       
      2007       
  Year Ended July 31,      Year Ended October 31, 
      to July 31,       
  2010  2009  2008  2007  2006  2005 
Per Share Operating Performance             
Net asset value, beginning of period  $ 12.95  $ 13.59  $ 14.53  $ 15.11  $ 14.91  $ 15.27 
Net investment income1  0.96  0.96  0.73  0.99  0.99  0.98 
Net realized and unrealized gain (loss)  1.18  (0.77)  (0.94)  (0.57)  0.28  (0.26) 
Dividends to Preferred Shareholders from net investment income  (0.02)  (0.13)  (0.21)  (0.30)  (0.26)  (0.14) 
Net increase (decrease) from investment operations  2.12  0.06  (0.42)  0.12  1.01  0.58 
Dividends to Common Shareholders from net investment income  (0.81)  (0.70)  (0.52)  (0.70)  (0.81)  (0.92) 
Capital charges with respect to issuance of Preferred Shares          (0.00)2  (0.02) 
Net asset value, end of period  $ 14.26  $ 12.95  $ 13.59  $ 14.53  $ 15.11  $ 14.91 
Market price, end of period  $ 14.36  $ 11.72  $ 11.91  $ 12.86  $ 14.35  $ 14.93 
Total Investment Return3             
Based on net asset value  17.12%  1.93%  (2.52)%4  1.21%  7.24%  3.98% 
Based on market price  30.32%  5.26%  (3.48)%4  (5.68)%  1.71%  11.34% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses5  1.26%  1.35%  1.42%6  1.47%  1.44%  1.25% 
Total expenses after fees waived5  1.26%  1.34%  1.40%6  1.46%  1.42%  1.25% 
Total expenses after fees waived and excluding interest expense and fees5,7  1.02%  1.12%  1.10%6  1.10%  1.09%  1.05% 
Net investment income5  6.92%  7.66%  6.77%6  6.72%  6.63%  6.46% 
Dividends to Preferred Shareholders  0.18%  1.09%  1.92%6  2.01%  1.75%  0.95% 
Net investment income to Common Shareholders  6.74%  6.57%  4.85%6  4.71%  4.88%  5.51% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 193,270  $ 175,610  $ 184,315  $ 197,014  $ 204,865  $ 202,042 
Preferred Shares outstanding at $25,000 liquidation preference,             
end of period (000)  $ 59,475  $ 59,475  $ 90,825  $ 110,000  $ 110,000  $ 110,000 
Portfolio turnover  41%  63%  22%  25%  46%  42% 
Asset coverage per Preferred Share at $25,000 liquidation preference,             
end of period  $ 106,242  $ 98,819  $ 75,742  $ 69,790  $ 71,574  $ 70,920 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option
bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2010

35



Financial Highlights      BlackRock MuniYield New Jersey Fund, Inc. (MYJ) 
      Period       
      December 1,       
      2007       
  Year Ended July 31,      Year Ended November 30, 
      to July 31,       
  2010  2009  2008  2007  2006  2005 
Per Share Operating Performance             
Net asset value, beginning of period  $ 14.13  $ 14.36  $ 15.18  $ 15.90  $ 15.37  $ 15.25 
Net investment income1  1.00  0.98  0.62  1.01  1.00  1.01 
Net realized and unrealized gain (loss)  1.00  (0.34)  (0.79)  (0.74)  0.54  0.18 
Dividends to Preferred Shareholders from net investment income  (0.04)  (0.15)  (0.18)  (0.29)  (0.25)  (0.16) 
Net increase (decrease) from investment operations  1.96  0.49  (0.35)  (0.02)  1.29  1.03 
Dividends to Common Shareholders from net investment income  (0.85)  (0.72)  (0.47)  (0.70)  (0.76)  (0.91) 
Capital charges with respect to issuance of Preferred Shares            (0.00)2 
Net asset value, end of period  $ 15.24  $ 14.13  $ 14.36  $ 15.18  $ 15.90  $ 15.37 
Market price, end of period  $ 15.19  $ 13.49  $ 13.52  $ 13.66  $ 15.47  $ 14.38 
Total Investment Return3             
Based on net asset value  14.34%  4.50%  (2.17)%4  0.11%  8.83%  7.08% 
Based on market price  19.38%  5.96%  2.35%4  (7.41)%  13.17%  3.72% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses5  1.01%  1.15%  1.22%6  1.28%  1.44%  1.39% 
Total expenses after fees waived5  1.00%  1.14%  1.20%6  1.27%  1.44%  1.39% 
Total expenses after fees waived and excluding interest expense and fees5,7  0.98%  1.05%  1.13%6  1.10%  1.09%  1.09% 
Net investment income5  6.71%  7.21%  6.27%6  6.56%  6.50%  6.47% 
Dividends to Preferred Shareholders  0.30%  1.12%  1.85%6  1.85%  1.65%  1.05% 
Net investment income to Common Shareholders  6.41%  6.09%  4.42%6  4.71%  4.85%  5.42% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 216,433  $ 200,740  $ 204,022  $ 215,585  $ 225,855  $ 218,250 
Preferred Shares outstanding at $25,000 liquidation preference,             
end of period (000)  $ 102,200  $ 102,200  $ 104,725  $ 119,000  $ 119,000  $ 119,000 
Portfolio turnover  15%  21%  11%  18%  9%  32% 
Asset coverage per Preferred Share at $25,000 liquidation preference,             
end of period  $ 77,946  $ 74,107  $ 73,709  $ 70,305  $ 72,452  $ 70,858 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option
bond trusts.

See Notes to Financial Statements.

36 ANNUAL REPORT

JULY 31, 2010



Notes to Financial Statements

1. Organization and Significant Accounting Policies:

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”) (collec-
tively, the “Funds” or individually as a “Fund”) 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 Funds' financial statements are pre-
pared 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 and
disclosures in the financial statements. Actual results could differ from
those estimates. The Funds determine and make available for publication
the net asset value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by
the Funds:

Valuation: The Funds fair value their financial instruments at market value
using independent dealers or pricing services under policies approved by
each Fund’s Board of Directors/Trustees (the “Board”). Municipal invest-
ments (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 rela-
tionships between investments. Financial futures contracts traded on
exchanges are valued at their last sale price. Short-term securities with
remaining maturities of 60 days or less may be valued at amortized cost,
which approximates fair value. Investments in open-end investment compa-
nies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued 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 investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.

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 trans-
actions normally occurs within a month or more after the purchase or sale
commitment is made. The Funds may purchase securities under such con-
ditions 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 purchaser is not entitled to any of the interest
earned prior to settlement. When purchasing a security on a delayed deliv-
ery basis, the Funds assume the rights and risks of ownership of the secu-
rity, 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 on the
Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of tender option bond trusts (“TOBs”).
A TOB is established by a third party sponsor forming a special purpose
entity, into which one or more funds, or an agent on behalf of the funds,
transfers municipal bonds. Other funds managed by the investment advisor
may also contribute municipal bonds to a TOB into which a Fund has con-
tributed bonds. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates (“TOB Residuals”), which are generally issued to
the participating funds that made the transfer. The TOB Residuals held by a
Fund include the right of a Fund (1) to cause the holders of a proportional
share of the short-term floating rate certificates to tender their certificates
at par, including during instances of a rise in short-term interest rates and
(2) to transfer, within seven days, a corresponding share of the municipal
bonds from the TOB to a Fund. The TOB may also be terminated without the
consent of a Fund upon the occurrence of certain 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 quarterly or annual
renewal of the liquidity support agreement, a substantial decline in market
value of the municipal bond or the inability to remarket the short-term
floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to a Fund, which typically
invests the cash in additional municipal bonds. Each Fund’s transfer of the
municipal bonds to a TOB is accounted for as a secured borrowing, there-
fore the municipal bonds deposited into a TOB are presented in the Funds'
Schedules of Investments and the proceeds from the issuance of the short-
term floating rate certificates are shown as trust certificates in the
Statements of Assets and Liabilities.

Interest income from the underlying municipal bonds is recorded by the
Funds on an accrual basis. Interest expense incurred on the secured bor-
rowing and other expenses related to remarketing, administration and
trustee services to a TOB are shown as interest expense and fees in the
Statements of Operations. The short-term floating rate certificates have
interest rates that generally reset weekly and their holders have the option
to tender certificates to the TOB for redemption at par at each reset date.
At July 31, 2010, the aggregate value of the underlying municipal bonds

ANNUAL REPORT

JULY 31, 2010

37



Notes to Financial Statements (continued)

transferred to TOBs, the related liability for trust certificates and the range
of interest rates on the liability for trust certificates were as follows:

Underlying
Municipal
  Bonds  Liability for  Range of 
  Transferred  Trust  Interest 
  to TOBs  Certificates  Rates 
MNE  $ 2,397,945  $ 1,125,000  0.27% — 0.28% 
MZA  $ 3,160,920  $ 1,500,000  0.28% 
MYC  $227,738,807  $117,818,654  0.27% — 0.33% 
MYF  $111,569,841  $ 58,244,649  0.27% — 0.43% 
MYJ  $ 14,865,172  $ 8,653,701  0.28% — 0.34% 

 

For the year ended July 31, 2010, the Funds' average trust certificates
outstanding and the daily weighted average interest rate, including fees,
were as follows:

  Average Trust  Daily Weighted 
  Certificates  Average 
  Outstanding  Interest Rate 
MNE  $ 601,932  0.78% 
MZA  $ 1,500,00  0.81% 
MYC  $78,256,601  0.73% 
MYF  $55,202,537  0.80% 
MYJ  $ 6,616,401  0.72% 

 

Should short-term interest rates rise, the Funds' investments in TOBs may
adversely affect the Funds' net investment income and distributions to
shareholders. Also, fluctuations in the market value of municipal bonds
deposited into the TOB may adversely affect the Funds' net asset values
per share.

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.

Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission (“SEC”)
require that the Funds either deliver collateral or segregate assets in con-
nection with certain investments (e.g., 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 other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements to
deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the transac-
tions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Interest income, including amortization of premium and accretion of
discount 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. Dividends and distributions to Preferred
Shareholders are accrued and determined as described in Note 7.

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 its taxable
income to its 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 limita-
tions on the Funds' US federal tax returns remains open for each of the
four periods ended as follows:

  Year Ended  Period  Year Ended 
MNE  July 31, 2010,  June 1, 2008 to  May 31, 2007, 
  July 31, 2009  July 31, 2008  May 31, 2008 
MZA  July 31, 2010,  November 1, 2007 to   
  July 31, 2009  July 31, 2008  October 31, 2007 
MYC  July 31, 2010,  November 1, 2007 to   
  July 31, 2009  July 31, 2008  October 31, 2007 
MYF  July 31, 2010,  November 1, 2007 to   
  July 31, 2009  July 31, 2008  October 31, 2007 
MYJ  July 31, 2010,  December 1, 2007 to   
  July 31, 2009  July 31, 2008  November 30, 2007 

 

The statutes of limitations on the Funds' state and local tax returns may
remain open for an additional year depending upon the jurisdiction.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund's Board, non-interested 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 other certain BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same
economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors
in order to match its deferred compensation obligations. Investments to
cover each Fund's deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and dis-
tributions from the BlackRock Closed-End Fund investments under the plan
are included in income — affiliated in the Statements of Operations.

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 their 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

38 ANNUAL REPORT

JULY 31, 2010



Notes to Financial Statements (continued)

Operations. The custodians impose fees on overdrawn cash balances,
which can be offset by accumulated credits earned or may result in
additional custody charges.

2. Derivative Financial Instruments:

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

Losses may arise if the value of the contract decreases due to an unfav-
orable change in the market rates or value of the underlying instrument
or if the counterparty does not perform under the contract. Counterparty
risk related to exchange-traded financial futures contracts is minimal
because of the protections against defaults provided by the exchange
on which they trade.

Financial Futures Contracts: The Funds purchase 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 contracts for delayed delivery of securities

or currencies at a specific future date and at a specific price or yield.
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 margin variation and are
recognized by the Funds as unrealized gains or losses. 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 transactions involves
the risk of an imperfect correlation in the movements in the price of finan-
cial futures contracts, interest rates and the underlying assets.

Derivative Instruments Catagorized by Risk Exposure:     
Fair Values of Derivative Instruments as of July 31, 2010

Liability Derivatives

    MZA  MYC 
Statements of Assets
  and Liabilities Location    Value 
  Net unrealized     
Interest rate contracts  appreciation/depreciation*  $ 25,901  $ 53,571 
*Includes cumulative appreciation/depreciation of financial futures contracts as 
reported in the Schedules of Investments. Only current day’s margin variation is 
reported within the Statements of Assets and Liabilities.   

 

The Effect of Derivative Instruments on the Statements of Operations

Year Ended July 31, 2010

  Net Realized Gain (Loss) from         
  MNE       MZA  MYC  MYF  MYJ 
Interest rate contracts:             
Financial futures contracts  $ 3,982  $ 6,527  $ (111,843)  $ 21,850  $ 20,136 
  Net Change in Unrealized Appreciation/Depreciation on       
  MZA       MYC       
Interest rate contracts:             
Financial futures contracts  $ (25,901)  $ (53,571)       

 

For the year ended July 31, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:

  MNE      MZA  MYC  MYF  MYJ 
Financial futures contracts:           
Average number of contracts purchased  1      3  3 
Average number of contracts sold    3  6  4  4 
Average notional value of contracts purchased  $ 115,002      $ 373,757  $ 287,506 
Average notional value of contracts sold    $ 364,962  $ 760,436  $ 426,445  $ 487,366 

 

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership struc-
ture, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and
Barclays are not.

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 at the
following annual rates of each Fund's average daily net assets as follows:

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

 

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

The Manager contractually agreed to waive a portion of its fee during the
first seven years of MNE’s operations ending July 31, 2010. For the year
ended July 31, 2010, the Manager waived advisory fees in the amount of
0.05% of MNE’s average daily net assets. As a result, the Manager waived
$44,203, which is included in fees waived by advisor in the Statements
of Operations.

ANNUAL REPORT

JULY 31, 2010

39



Notes to Financial Statements (continued)

The Manager voluntarily agreed to waive its investment advisory fees by the
amount of investment advisory fees each Fund pays to the Manager indi-
rectly 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 through each Fund’s investment in other
affiliated investment companies, if any. These amounts are shown as, or
included in, fees waived by advisor in the Statements of Operations. For
the year ended July 31, 2010, the amounts waived were as follows:

MNE  $ 2,278 
MZA  $ 5,049 
MYC  $19,738 
MYF  $ 4,697 
MYJ  $24,298 

 

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 percent-
age of the investment advisory fees paid by each Fund to the Manager.

For the year ended July 31, 2010, each Fund reimbursed the Manager for
certain accounting services, which are included in accounting services in
the Statements of Operations. The reimbursements were as follows:

MNE  $1,706 
MZA  $1,930 
MYC  $9,596 
MYF  $5,946 
MYJ  $6,083 

 

Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburse the Manager for com-
pensation paid to the Funds' Chief Compliance Officer.

4. Investments:

Purchases and sales of investments excluding short-term securities for the
year ended July 31, 2010, were as follows:

  Purchases  Sales 
MNE  $ 24,656,510  $ 23,848,195 
MZA  $ 25,088,399  $ 24,055,064 
MYC  $252,975,017  $196,323,216 
MYF  $137,954,213  $124,500,953 
MYJ  $ 46,340,138  $ 52,690,165 

 

5. Income Tax Information:

Reclassifications: US GAAP require 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, 2010 attributable to
amortization methods on fixed income securities were reclassified to the following accounts:

    MNE  MZA    MYC  MYF  MYJ   
Undistributed net investment income  $ (18,108)  $ 37,248  $ (148)  $ (10,187)  $ (6) 
Accumulated net realized loss  $ 18,108  $ (37,248)  $ 148  $ 10,187  $ 6 
The tax character of distributions paid during the fiscal years ended July 31, 2010 and July 31, 2009 were as follows:         
    MNE  MZA    MYC  MYF  MYJ   
Tax-exempt income                 
7/31/2010  $ 3,258,967  $ 3,984,714  $18,268,227  $11,349,238  $12,638,922 
7/31/2009    3,532,112  4,059,092  17,252,007  11,207,252  12,398,844 
Ordinary income                 
7/31/2010        87,185       
7/31/2009        196,890  188,682     
Total distributions                 
7/31/2010  $ 3,258,967  $ 3,984,714  $18,355,412  $11,349,238  $12,638,922 
7/31/2009  $ 3,532,112  $ 4,059,092  $17,448,897  $11,395,934  $12,398,644 
As of July 31, 2010, the tax components of accumulated earnings were as follows:               
    MNE  MZA    MYC  MYF  MYJ   
Undistributed tax-exempt income  $ 760,561  $ 937,007  $ 4,997,005  $ 3,193,539  $ 3,980,488 
Undistributed ordinary income      3,994      1,847  30,419 
Capital loss carryforwards    (2,240,245)  (1,188,575)  (5,610,728)  (13,252,589)  (1,999,707) 
Net unrealized gains*    2,859,181  2,307,727  13,341,694  14,434,110  9,927,933 
Total  $ 1,379,497  $ 2,060,153  $12,727,971  $ 4,376,907  $11,939,133 

 

* The differences between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on straddles, the difference between book and tax for
premiums and discounts on fixed income securities, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the deferral of post-October capital
losses for tax purposes, and the treatment of residual interests in tender option bond trusts.

40 ANNUAL REPORT

JULY 31, 2010



Notes to Financial Statements (continued)

As of July 31, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires July 31,  MNE  MZA  MYC  MYF  MYJ 
2011      $ 178,107     
2012  $ 134,161      $ 1,266,217  $ 239,556 
2015  25,350         
2016  739,187  $ 318,483  393,490  2,101,744  104,422 
2017  501,235    169,064    421,488 
2018  840,312  870,092  4,870,067  9,884,628  1,234,241 
Total  $ 2,240,245  $ 1,188,575  $ 5,610,728  $ 13,252,589  $ 1,999,707 

 

6. 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.

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 fluctua-
tions. Similar to issuer credit risk, the Funds may be exposed to counter-
party 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 Funds' Statements of Assets and Liabilities, less any collat-
eral held by the Funds.

MZA and MYC invest a significant portion of their assets in the County/
City/Special District/School District and Utilities sectors. MYF invests a
significant portion of its assets in securities in the County/City/Special
District/School District, Transportation and Health sectors. MYJ invests a
significant portion of its assets in securities in the State sector. Changes
in economic conditions affecting the County/City/Special District/School
District, Health, State, Transportation and Utilities sectors would have a
greater impact on the Funds, and could affect the value, income and/or
liquidity of positions in such securities.

7. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares (MVF is authorized to
issue an unlimited number of shares, par value $0.10 per share) including
Preferred Shares, all of which were initially classified as Common Shares.
Each Board is authorized, however, to reclassify any unissued shares
without approval of Common Shareholders.

Common Shares

Shares issued and outstanding for MZA for the years ended July 31, 2010
and July 31, 2009 increased by 8,600 and 7,393, respectively, as a result
of dividend reinvestment.

Shares issued and outstanding remained constant for MNE, MYC, MYF and
MYJ for the years ended July 31, 2010 and July 31, 2009.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, 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 Preferred Shares are 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 a Fund, as set forth in each Fund's Articles
Supplementary/Statement of Preferences/Certificate of Designation, as
applicable (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Fund may effect repurchases of its
Preferred Shares at prices below their liquidation preference as agreed
upon by the Fund and seller. Each Fund also may redeem its Preferred
Shares from time to time as provided in the applicable Governing
Instrument. Each Fund intends to effect such redemptions and/or repur-
chases to the extent necessary to maintain applicable asset coverage
requirements or for such other reasons as the Board may determine.

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 hold-
ers 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

ANNUAL REPORT

JULY 31, 2010

41



Notes to Financial Statements (continued)

a Funds' 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.

The Funds had the following series of Preferred Shares outstanding, effec-
tive yields and reset frequency as of July 31, 2010:

        Reset 
    Preferred  Effective Frequency 
  Series  Shares  Yield  Days 
MNE  F7  1,185  1.47%1  7 
MZA  A  499  0.43%2  7 
  B  668  0.44%2  7 
  C  385  1.47%1  7 
MYC  A  1,453  0.38%2  28 
  B  1,453  0.43%2  7 
  C  484  0.43%2  28 
  D  848  1.50%1  7 
MYF  A  1,189  0.43%2  7 
  B  865  0.41%2  7 
  C  325  1.49%1  7 
MYJ  A  2,061  0.43%2  7 
  B  1,288  0.43%2  7 
  C  739  1.50%1  7 

 

1 The maximum applicable rate on this series of Preferred Shares is the higher of
110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.
2 The maximum applicable rate on this series of Preferred Shares is the higher of
110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day and 28-day Preferred Shares are cumulative at a
rate which is reset every seven or 28 days, respectively, based on the
results of an auction. If the Preferred Shares fail to clear the auction on an
auction date, each Fund is required to pay the maximum applicable rate
on the Preferred Shares to holders of such shares for successive dividend
periods until such time as the shares are successfully auctioned. The maxi-
mum applicable rate on the Preferred Shares is as footnoted in the pre-
ceding table above. The low, high and average dividend rates on the
Preferred Shares for each Fund for the year ended July 31, 2010 were
as follows:

  Series  Low  High  Average 
MNE  F7  1.32%  1.63%  1.48% 
MZA  A  0.26%  0.58%  0.42% 
  B  0.24%  0.58%  0.42% 
  C  1.32%  1.63%  1.48% 
MYC  A  0.32%  0.50%  0.43% 
  B  0.26%  0.58%  0.42% 
  C  0.26%  0.58%  0.42% 
  D  1.32%  1.63%  1.48% 
MYF  A  0.26%  0.58%  0.42% 
  B  0.24%  0.58%  0.41% 
  C  1.34%  1.63%  1.48% 
MYJ  A  0.26%  0.58%  0.41% 
  B  0.26%  0.58%  0.41% 
  C  1.32%  1.63%  1.48% 

 

Since February 13, 2008, the Preferred Shares of the Funds failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 0.24% to 1.63%
for the year ended July 31, 2010. A failed auction is not an event of
default for the Funds but it has a negative impact on the liquidity of
Preferred Shares. A failed auction occurs when there are more sellers of a
Fund's auction rate preferred shares than buyers. It is impossible to predict
how long this imbalance will last. A successful auction for the Funds'
Preferred Shares may not occur for some time, if ever, and even if liquidity
does resume, holders of the Preferred Shares may not have the ability to
sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the declara-
tion, distribution or purchase, asset coverage with respect to the outstand-
ing Preferred Shares is less than 200%.

The Funds pay commissions of 0.25% on the aggregate principal amount
of all shares that successfully clear their auctions and 0.15% on the
aggregate principal amount of all shares that fail to clear their auctions.
Certain broker dealers have individually agreed to reduce commissions
for failed auctions.

During the year ended July 31, 2009, certain funds announced the follow-
ing redemptions of Preferred Shares at a price of $25,000 per share plus
any accrued and unpaid dividends through the redemption date:

    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
MZA  A  7/09/09  19  $ 475,000 
  B  7/14/09  26  $ 650,000 
  C  7/06/09  15  $ 375,000 
MYC  A  7/09/09  282  $ 7,050,000 
  B  7/02/09  282  $ 7,050,000 
  C  7/30/09  94  $ 2,350,000 
  D  7/07/09  164  $ 4,100,000 
MYF  A  7/02/09  627  $15,675,000 
  B  7/06/09  456  $11,400,000 
  C  7/08/09  171  $ 4,275,000 
MYJ  A  7/09/09  51  $ 1,275,000 
  B  7/08/09  32  $ 800,000 
  C  7/07/09  18  $ 450,000 

 

The Funds financed the Preferred Share redemptions with cash received
from TOB transactions.

Preferred Shares issued and outstanding remained constant for the year
ended July 31, 2010 for all Funds and for the year ended July 31, 2009
for MNE.

42 ANNUAL REPORT

JULY 31, 2010



Notes to Financial Statements (concluded)

8. 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 on September 1, 2010
to Common Shareholders of record on August 16, 2010 as follows:

  Common Dividend 
  Per Share 
MNE  $0.0580 
MZA  $0.0695 
MYC  $0.0720 
MYF  $0.0750 
MYJ  $0.0705 

 

On September 1, 2010, the following Funds declared a dividend
to Common Shareholders of record on September 15, 2010 in the
following amounts:

  Common Dividend 
  Per Share 
MNE  $0.0610 
MZA  $0.0695 
MYC  $0.0760 
MYF  $0.0750 
MYJ  $0.0715 

 

The dividends declared on Preferred Shares for the period August 1, 2010
to August 31, 2010 were as follows:

    Dividends 
  Series  Declared 
MNE  F7  $436,446 
MZA  A  $ 52,146 
  B  $ 69,564 
  C  $141,799 
MYC  A  $ 11,380 
  B  $ 12,599 
  C  $ 4,298 
  D  $ 25,778 
MYF  A  $ 10,310 
  B  $ 7,380 
  C  $ 9,912 
MYJ  A  $ 11,196 
  B  $ 17,871 
  C  $ 22,465 

 

ANNUAL REPORT

JULY 31, 2010

43



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. (collectively the“Funds”):

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock Muni New York
Intermediate Duration Fund, Inc. as of July 31, 2010, and the related
statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the two years in the period then
ended, the period June 1, 2008 to July 31, 2008 and for each of the two
years in the period ended May 31, 2008. We have also audited the
accompanying statement of assets and liabilities, including the schedule
of investments, of BlackRock MuniYield Arizona Fund, Inc. as of July 31,
2010, and the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the two years
in the period then ended, the period November 1, 2007 to July 31, 2008
and for each of the three years in the period ended October 31, 2007.
We have also audited the accompanying statements of assets and liabili-
ties, including the schedules of investments, of BlackRock MuniYield
California Fund, Inc. and BlackRock MuniYield Investment Fund as of July
31, 2010, and the related statements of operations and cash flows for
the year then ended, the statements of changes in net assets for each of
the two years in the period then ended, and the financial highlights for
each of the two years in the period then ended, the period November 1,
2007 to July 31, 2008 and for each of the three years in the period
ended October 31, 2007. We have also audited the accompanying state-
ment of assets and liabilities, including the schedule of investments, of
BlackRock MuniYield New Jersey Fund, Inc. as of July 31, 2010, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the two years in the period then
ended, the period December 1, 2007 to July 31, 2008 and for each of
the three years in the period ended November 30, 2007. These financial
statements and financial highlights are the responsibility of the Funds’
management. Our responsibility is to express an opinion on these finan-
cial statements and financial highlights based on our audits. The financial
highlights for the period ended May 31, 2006 for BlackRock Muni New
York Intermediate Duration Fund, Inc. were audited by other auditors
whose report, dated July 14, 2006, expressed an unqualified opinion on
those financial highlights.

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 assur-
ance 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 finan-
cial 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 disclo-
sures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluat-
ing the overall financial statement presentation. Our procedures included
confirmation of securities owned as of July 31, 2010, by correspondence
with the custodian and brokers; where replies were not received from bro-
kers, 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 position of
BlackRock Muni New York Intermediate Duration Fund, Inc. as of July 31,
2010, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the two years in the period then ended, the
period June 1, 2008 to July 31, 2008 and for each of the two years in the
period ended May 31, 2008, in conformity with accounting principles gen-
erally accepted in the United States of America. Additionally, in our opin-
ion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of BlackRock
MuniYield Arizona Fund, Inc. as of July 31, 2010, the results of its opera-
tions for the year then ended, the changes in its net assets for each of the
two years in the period then ended, and the financial highlights for each
of the two years in the period then ended, the period November 1, 2007
to July 31, 2008 and for each of the three years in the period ended
October 31, 2007, in conformity with accounting principles generally
accepted in the United States of America. Additionally, in our opinion,
the financial statements and financial highlights referred to above present
fairly, in all material respects, the financial position of BlackRock
MuniYield California Fund, Inc. and of BlackRock MuniYield Investment
Fund as of July 31, 2010, 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 two years in the period then ended,the period November 1,
2007 to July 31, 2008 and for each of the three years in the period
ended October 31, 2007, in conformity with accounting principles gen-
erally accepted in the United States of America. Additionally, in our opin-
ion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of BlackRock
MuniYield New Jersey Fund, Inc. as of July 31, 2010, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the two years in the period then ended, the period December 1,
2007 to July 31, 2008 and for each of the three years in the period
ended November 30, 2007, in conformity with accounting principles
generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
September 28, 2010

44 ANNUAL REPORT

JULY 31, 2010



Important Tax Information (Unaudited)     
The following table summarizes the taxable per share distributions paid by MYC during the taxable year ended July 31, 2010:   
  Payable Date  Ordinary Income 
Common Shareholders  12/31/2009  $0.003772 
Preferred Shareholders:     
Series A  12/24/2009  $1.42 
Series B  12/10/2009  $1.21 
Series C  12/17/2009  $1.44 
Series D  12/15/2009  $2.76 

 

All of the other net investment income distributions paid by MYC qualify as tax-exempt interest dividends for federal income tax purposes.

All of the net investment income distributions paid by MNE, MZA, MYF and MYJ during the taxable years ended July 31, 2010 qualify as tax-exempt interest
dividends for federal income tax purposes.

ANNUAL REPORT

JULY 31, 2010

45



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors and the Board of Trustees, as the case may be
(each, a “Board,” and, collectively, the "Boards," and the members of which
are referred to as "Board Members") of each 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 on April 8, 2010 and
May 13-14, 2010 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. Each
Board also considered the approval of the sub-advisory agreement
(each, a “Sub-Advisory Agreement”) between the Manager and BlackRock
Investment Management, LLC (the “Sub-Advisor”) with respect to 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

The Board of each Fund consists of ten individuals, eight 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 each
Fund and perform the various duties imposed on the directors of invest-
ment 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 the Boards is an Independent Board Member. The
Boards have established five standing committees: an Audit Committee,
a Governance and Nominating Committee, a Compliance Committee, a
Performance Oversight Committee and an Executive Committee, each
of which is composed of Independent Board Members (except for the
Executive Committee, which also has one interested Board Member) and
is chaired by an Independent Board Member. The Boards also have two
ad hoc committees, the Joint Product Pricing Committee, which consists
of Independent Board Members and the directors/trustees of the boards
of certain other BlackRock-managed funds, who are not “interested per-
sons” of their respective funds, and the Ad Hoc Committee on Auction
Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the cont-
inuation of the Agreements on an annual basis. In connection with this
process, the Boards assessed, among other things, the nature, scope
and quality of the services provided to the Funds by the personnel of
BlackRock and its affiliates, including investment management, admin-
istrative and shareholder services, oversight of fund accounting and
custody, marketing services and assistance in meeting applicable legal
and regulatory requirements.

From time to time throughout the year, each Board, acting directly and
through its committees, considered at each of its meetings factors that
are relevant to its annual consideration of the renewal of the Agreements,
including the services and support provided by BlackRock to the respective
Fund and its shareholders. Among the matters the Board considered were:

(a) investment performance for one-, three- and five-year periods, as app-
licable, 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 a Fund’s peers and/or
benchmark, as applicable; (b) fees, including advisory, and other amounts
paid to BlackRock and its affiliates by each Fund for services such as
call center and fund accounting; (c) each Fund’s operating expenses;
(d) the resources devoted to and compliance reports relating to each
Fund’s investment objective, policies and restrictions; (e) each Fund’s
compliance with its Code of Ethics and compliance policies and proce-
dures; (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; (h) BlackRock’s implementation
of the proxy voting policies approved by the Boards; (i) execution quality
of portfolio transactions; (j) BlackRock’s implementation of each Fund’s
valuation and liquidity procedures; (k) an analysis of contractual and
actual management fees for products with similar investment objectives
across the open-end fund, closed-end fund and institutional account
product channels, as applicable; and (l) periodic updates on
BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 8, 2010 meeting, the Boards
requested and received materials specifically relating to the Agreements.
The Boards are engaged in a process with BlackRock to periodically 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, and the investment perform-
ance of each Fund as compared with a peer group of funds as determined
by Lipper and a customized peer group selected by BlackRock, as app-
licable (collectively, “Peers”); (b) information on the profitability of the
Agreements to BlackRock and a discussion of fall-out benefits to
BlackRock and its affiliates and significant shareholders; (c) a general
analysis provided by BlackRock concerning investment advisory fees
charged to other clients, such as institutional clients and open-end funds,
under similar investment mandates; (d) the impact of economies of scale;

(e) a summary of aggregate amounts paid by each Fund to BlackRock and
(f) if applicable, a comparison of management fees to similar BlackRock

closed-end funds, as classified by Lipper.

At an in-person meeting held on April 8, 2010, the Boards reviewed
materials relating to their consideration of the Agreements. As a result of
the discussions that occurred during the April 8, 2010 meeting, the Boards
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the May 13 – 14, 2010 Board meeting.

At an in-person meeting held on May 13 – 14, 2010, each Fund’s Board,
including the Independent Board Members, unanimously approved the
continuation of the Advisory Agreement between the Manager and each
respective Fund and the Sub-Advisory Agreement between the Manager
and the Sub-Advisor with respect to each Fund, each for a one-year term
ending June 30, 2011. In approving the continuation of the Agreements,

46 ANNUAL REPORT

JULY 31, 2010



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

the Boards considered: (a) the nature, extent and quality of the services
provided by BlackRock; (b) the investment performance of each Fund 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 each
Fund; (d) economies of scale; and (e) other factors deemed relevant by
the Board Members.

The Boards also considered other matters they deemed important to the
approval process, such as services related to the valuation and pricing of
each Fund’s portfolio holdings, direct and indirect benefits to BlackRock
and its affiliates and significant shareholders from their relationship with
each Fund 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 controlling, 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 each
Fund. Throughout the year, the Boards compared each Fund’s performance
to the performance of a comparable group of closed-end funds, and
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. The Boards also
reviewed the materials provided by each Fund’s portfolio management
team discussing each Fund’s performance and each Fund’s investment
objective, strategies and outlook.

The Boards considered, among other factors, the number, education
and experience of BlackRock’s investment personnel generally and each
Fund’s portfolio management team, investments by portfolio managers
in the funds they manage, BlackRock’s portfolio trading capabilities,
BlackRock’s use of technology, BlackRock’s commitment to compliance,
BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabili-
ties and BlackRock’s approach to training and retaining portfolio managers
and other research, advisory and management personnel. The Boards also
reviewed a general description of BlackRock’s compensation structure with
respect to each Fund’s portfolio management team and BlackRock’s ability
to attract and retain high-quality talent.

In addition to advisory services, the Boards considered the quality of the
administrative and non-investment advisory services provided to each
Fund. BlackRock and its affiliates and significant shareholders provide
each Fund with certain administrative and other services (in addition to
any such services provided to each Fund by third parties) and officers and
other personnel as are necessary for the operations of each Fund. In addi-
tion to investment advisory services, BlackRock and its affiliates provide
each Fund with other services, including (i) preparing disclosure docu-
ments, such as the prospectus 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 each Fund; (iii) assisting with daily accounting and pric-

ing; (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; and
(viii) performing other administrative functions necessary for the operation
of each Fund, such as tax reporting, fulfilling regulatory filing requirements,
and call center services. The Boards reviewed the structure and duties of
BlackRock’s fund administration, accounting, legal and compliance depart-
ments and considered BlackRock’s policies and procedures for assuring
compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Boards,
including the Independent Board Members, also reviewed and considered
the performance history of each Fund. In preparation for the April 8, 2010
meeting, the Boards were provided with reports, independently prepared by
Lipper, which included a comprehensive analysis of each Fund’s perform-
ance. The Boards also reviewed a narrative and statistical analysis of the
Lipper data that was prepared by BlackRock, which analyzed various fac-
tors that affect Lipper’s rankings. In connection with their review, the Boards
received and reviewed information regarding the investment performance
of each Fund as compared to a representative group of similar funds as
determined by Lipper and to all funds in each Fund’s applicable Lipper
category, and in the case of MZA, MYC and MYF, a customized peer group
selected by BlackRock. The Boards were provided with a description of the
methodology used by Lipper to select peer funds. The Boards regularly
review the performance of each Fund throughout the year.

The Board of MZA noted that, in general, MZA performed better than its
Peers in that MZA’s performance was at or above the median of its
Customized Lipper Peer Group Composite in each of the one-, three-
and five-year periods reported.

The Board of MNE noted that MNE performed below the median of its
Lipper Performance Composite in the three- and five-year periods reported,
but that MNE performed better than or equal to the median of its Lipper
Performance Composite in the one-year period reported. The Board of MNE
and BlackRock reviewed the reasons for MNE’s underperformance during
the three- and five-year periods compared with its Peers. The Board of
MNE was informed that, among other things, MNE’s portfolio managers
positioned the portfolio toward the longer end of the duration range. This
positioning leaves MNE more exposed to swings in interest rates, which
had a negative impact on MNE’s performance toward the end of 2007
and throughout 2008.

The Board of MYC noted that MYC performed below the median of its
Customized Lipper Peer Group Composite in the one- and five-year periods
reported, but that MYC performed better than or equal to the median of
its Customized Lipper Peer Group Composite in the three-year period
reported. The Board of MYC and BlackRock reviewed the reasons for MYC’s
underperformance during the one- and five-year periods compared with its
Peers. The Board of MYC was informed that, among other things, underper-
formance mainly stems from a below market dividend distribution rate.
In addition, the prospectus prohibits investments in non investment grade
securities, which detracts from MYC’s ability to generate a higher
income accrual.

ANNUAL REPORT

JULY 31, 2010

47



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

The Board of MYJ noted that MYJ performed below the median of its Lipper
Performance Composite in the one- and three-year periods reported, but
that MYJ performed better than or equal to the median of its Lipper
Performance Composite in the five-year period reported. The Board of MYJ
and BlackRock reviewed the reasons for MYJ’s underperformance during
the one- and three-year periods compared with its Peers. The Board of MYJ
was informed that, among other things, an overweight to the hospital sector
hindered performance.

The Boards of MNE, MYC and MYJ and BlackRock discussed BlackRock’s
strategy for improving each respective Fund’s performance and BlackRock’s
commitment to providing the resources necessary to assist each Fund’s
portfolio managers and to improve each Fund’s performance.

The Board of MYF noted that MYF performed below the median of its
Customized Lipper Peer Group Composite in each of the one-, three- and
five-year periods reported. The Board of MYF and BlackRock reviewed the
reasons for MYF’s underperformance during these periods compared with
its Peers. The Board of MYF was informed that, among other things, while
MYF’s portfolio managers have reduced MYF’s Florida exposure, MYF
remains over-weighted in Florida holdings versus its Peers, which has
hindered MYF’s performance, as the state of Florida continues to have
budget deficit concerns and a very weak housing market.

The Board of MYF and BlackRock discussed BlackRock’s strategy for
improving MYF’s performance and BlackRock’s commitment to providing
the resources necessary to assist MYF’s portfolio managers and to improve
MYF’s performance, in part through the repositioning of MYF’s portfolio.

The Boards noted that BlackRock has made changes to the organization
of the overall fixed income group management structure designed to result
in a strengthened leadership team with clearer accountability.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Funds: The Boards, including the Independent Board
Members, reviewed each Fund’s contractual advisory fee rate compared
with the other funds in its Lipper category. The Boards also compared each
Fund’s total expenses, as well as actual management fees, to those of
other funds in its Lipper category. The Boards considered the services
provided and the fees charged by BlackRock to other types of clients
with similar investment mandates, including separately managed
institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s
financial condition and profitability with respect to the services it provided
each Fund. The Boards were also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by BlackRock for
services provided to each Fund. The Boards reviewed BlackRock’s prof-
itability with respect to each Fund and other funds the Boards currently
oversee for the year ended December 31, 2009 compared to available
aggregate profitability data provided for the year ended December 31,
2008. The Boards reviewed BlackRock’s profitability with respect to 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 allo-
cating 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, expense allocations and business mix, and the difficulty
of comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitabil-
ity of other advisors is not publicly available. Nevertheless, to the extent
such information was available, the Boards considered BlackRock’s overall
operating margin, in general, compared to the operating margin for leading
investment management firms whose operations include advising closed-
end funds, among other product types. That data indicates that operating
margins for BlackRock with respect to its registered funds are generally
consistent with margins earned by similarly situated publicly traded com-
petitors. In addition, the Boards considered, among other things, certain
third party data comparing BlackRock’s operating margin with that of
other publicly-traded asset management firms. That third party data
indicates that larger asset bases do not, in themselves, translate to
higher profit margins.

In addition, the Boards considered the cost of the services provided to
each Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating
to the management and distribution of each Fund and the other funds
advised by BlackRock and its affiliates. As part of their analysis, the Boards
reviewed BlackRock’s methodology in allocating its costs to the manage-
ment of each Fund. 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 Fund noted that its Fund’s contractual management
fee rate was lower than or equal to the median contractual management
fee rate paid by the Fund’s Peers, in each case, before taking into account
any expense reimbursements or fee waivers.

D. Economies of Scale: The Boards, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of each Fund increase. The Boards also considered
the extent to which each Fund benefits from such economies and whether
there should be changes in the advisory fee rate or structure in order to
enable each 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 each Fund.

The Boards noted that most closed-end fund complexes do not have fund
level breakpoints because closed-end funds generally do not experience
substantial growth after the initial public offering and each fund is man-
aged independently consistent with its own investment objectives. The
Boards noted that only one closed-end fund in the Fund Complex has
breakpoints in its fee structure. Information provided by Lipper also
revealed that only one closed-end fund complex with total closed-end
fund nets assets exceeding $10 billion, as of December 31, 2009, used
a complex level breakpoint structure.

48 ANNUAL REPORT

JULY 31, 2010



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

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 and significant
shareholders 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, an increase in
BlackRock’s profile in the investment advisory community, and the engage-
ment of BlackRock’s affiliates and significant shareholders as service
providers to each Fund, including for administrative and distribution serv-
ices. 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 mutual fund trans-
actions to assist in managing all or a number of its other client accounts.
The Boards further noted that BlackRock completed the acquisition of a
complex of exchange-traded funds (“ETFs”) on December 1, 2009, and
that BlackRock’s funds may invest in such 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 market-
place, and that shareholders are able to sell their respective Fund’s 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.

Conclusion

The Boards, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between the Manager
and each Fund for a one-year term ending June 30, 2011 and the Sub-
Advisory Agreement between the Manager and the Sub-Advisor with
respect to each Fund for a one-year term ending June 30, 2011. As part
of its approval, each Board considered the discussions of BlackRock’s fee
structure, as it applies to its respective Fund, being conducted by the ad
hoc Joint Product Pricing Committee. 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 Agree-
ments were fair and reasonable and in the best interest of each Fund and
its shareholders. In arriving at a 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 con-
sidered. The Independent Board Members were also assisted by the advice
of independent legal counsel in making this determination. The contractual
fee arrangements for each Fund 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. Certain aspects of the arrangements may be the subject of
more attention in some years than in others, and the Board Members’
conclusions may be based in part on their consideration of these
arrangements in prior years.

ANNUAL REPORT

JULY 31, 2010

49



Automatic Dividend Reinvestment Plan

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Plan”), common
shareholders are automatically enrolled to have all distributions of divi-
dends and capital gains reinvested by BNY Mellon Shareowner Services
for MZA, MYC, MYF and MYJ and Computershare Trust Company, N.A. for
MNE (individually, the “Plan Agent” or together, the “Plan Agents”) in the
respective Fund’s shares pursuant to the Plan. Shareholders who do not
participate in the 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 or other nominee name, then to the nominee) by the Plan Agent,
which serves as agent for the shareholders in administering the Plan.

After the Funds declare a dividend or determine to make a capital gain dis-
tribution, the Plan Agent will acquire shares for the participants’ accounts,
depending upon the following circumstances, either (i) through receipt of
unissued but authorized shares from the Fund (“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 condi-
tion often referred to as a “market premium”), the Plan Agent will invest the
dividend amount in newly issued shares 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 payment date, the dollar amount of the
dividend will be divided by 95% of the market price on the payment date.
If, on the dividend payment date, the NAV is greater than the market value
per share plus estimated brokerage commissions (such condition often
referred to as a “market discount”), the Plan Agent will invest the dividend
amount in shares acquired on behalf of the participants in open-market
purchases. If the Plan Agents are unable to invest the full dividend amount
in open market purchases, or if the market discount shifts to a market pre-
mium during the purchase period, the Plan Agents will invest any un-
invested portion in newly issued shares.

Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by notice if received and processed
by the Plan Administrator prior to the dividend record date; otherwise such
termination or resumption will be effective with respect to any subsequently
declared dividend or other distribution.

The 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
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 Plan. There is
no direct service charge to participants in the Plan; however, each Fund
reserves the right to amend the Plan to include a service charge payable
by the participants. Participants that request a sale of shares through
Computershare Trust Company, N.A. are subject to a $2.50 sales fee and
a $0.15 per share sold brokerage commission. Participants that request
a sale of shares through BNY Mellon Shareowner Services are subject to a
$0.02 per share sold brokerage commission. All correspondence concern-
ing the Plan should be directed to the respective Plan Agent: BNY Mellon
Shareowner Services, P.0. Box 358035, Pittsburgh, PA 15252-8035,
Telephone: (866) 216-0242 for shareholders of MZA, MYC, MYF and MYJ
or Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI
02940-3078, Telephone: (800) 699-1BFM or overnight correspondence
should be directed to the Plan Agent at 250 Royall Street, Canton, MA
02021 for shareholders of MNE.

50 ANNUAL REPORT

JULY 31, 2010



Officers and Directors         
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Funds  a Director2 Principal Occupation(s) During Past Five Years  Overseen  Directorships 
Non-Interested Directors1         
Richard E. Cavanagh  Chairman  Since  Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life  99 Funds  Arch Chemical 
55 East 52nd Street  of the Board  2007  Insurance Company of America since 1998; Trustee, Educational Testing Service  97 Portfolios  (chemical and allied 
New York, NY 10055  and Director    from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor,    products) 
1946      The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer,     
      Harvard University since 2007; President and Chief Executive Officer, The Conference     
      Board, Inc. (global business research organization) from 1995 to 2007.     
Karen P. Robards  Vice Chair of  Since  Partner of Robards & Company, LLC (financial advisory firm) since 1987;  99 Funds  AtriCure, Inc. 
55 East 52nd Street  the Board,  2007  Co-founder and Director of the Cooke Center for Learning and Development  97 Portfolios  (medical devices) 
New York, NY 10055  Chair of    (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc.     
1950  the Audit    (health care real estate investment trust) from 2007 to 2010; Director of Enable     
  Committee    Medical Corp. from 1996 to 2005; Investment Banker at Morgan Stanley from     
  and Director    1976 to 1987.     
Frank J. Fabozzi  Director and  Since  Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in  99 Funds  None 
55 East 52nd Street  Member of  2007  the Practice of Finance and Becton Fellow, Yale University, School of Management,  97 Portfolios   
New York, NY 10055  the Audit    since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from     
1948  Committee    1994 to 2006.     
Kathleen F. Feldstein  Director  Since  President of Economics Studies, Inc. (private economic consulting firm) since  99 Funds  The McClatchy 
55 East 52nd Street    2007  1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee  97 Portfolios  Company 
New York, NY 10055      Emeritus thereof since 2008; Member of the Board of Partners Community    (publishing); 
1941      Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners    BellSouth (tele- 
      HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member    communications); 
      of the Visiting Committee to the Harvard University Art Museum since 2003; Director,    Knight Ridder 
      Catholic Charities of Boston since 2009.    (publishing) 
James T. Flynn  Director and  Since  Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.  99 Funds  None 
55 East 52nd Street  Member of  2007    97 Portfolios   
New York, NY 10055  the Audit         
1939  Committee         
Jerrold B. Harris  Director  Since  Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment)  99 Funds  BlackRock Kelso 
55 East 52nd Street    2007  since 2000; Director of Delta Waterfowl Foundation since 2001; President and  97 Portfolios  Capital Corp. 
New York, NY 10055      Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.    (business 
1942          development 
          company) 

 

ANNUAL REPORT

JULY 31, 2010

51



Officers and Directors (continued)     
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Funds  a Director2 Principal Occupation(s) During Past Five Years  Overseen  Directorships 
Non-Interested Directors1 (concluded)         
R. Glenn Hubbard  Director  Since  Dean, Columbia Business School since 2004; Columbia faculty member since  99 Funds  ADP (data and 
55 East 52nd Street    2007  1988; Co-Director of Columbia Business School’s Entrepreneurship Program from  97 Portfolios  information services); 
New York, NY 10055      1997 to 2004; Chairman, US Council of Economic Advisers under the President    KKR Financial 
1958      of the United States from 2001 to 2003; Chairman, Economic Policy Committee    Corporation (finance); 
      of the OECD from 2001 to 2003.    Metropolitan Life 
          Insurance Company 
          (insurance) 
W. Carl Kester  Director and  Since  George Fisher Baker Jr. Professor of Business Administration, Harvard Business  99 Funds  None 
55 East 52nd Street  Member of  2007  School; Deputy Dean for Academic Affairs from 2006 to 2010; Unit Head,  97 Portfolios   
New York, NY 10055  the Audit    Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and     
1951  Committee    Chairman of the MBA Program of Harvard Business School from 1999 to 2005;     
      Member of the faculty of Harvard Business School since 1981; Independent     
      Consultant since 1978.     
  1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
  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, each director first became a member of the board 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           
Richard S. Davis  President4  Since  Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State  169 Funds  None 
55 East 52nd Street  and  2007  Street Research & Management Company from 2000 to 2005; Chairman of  292 Portfolios   
New York, NY 10055  Director    the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.     
1945           
Henry Gabbay  Director  Since  Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,  169 Funds  None 
55 East 52nd Street    2007  Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC  292 Portfolios   
New York, NY 10055      from 1998 to 2007; President of BlackRock Funds and BlackRock Bond     
1947      Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end     
      funds in the BlackRock fund complex from 1989 to 2006.     

 

3 Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds based on his position with BlackRock, Inc. and
its affiliates. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his owner-
ship of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or until December
31 of the year in which they turn 72.
4 For MYF.

52 ANNUAL REPORT

JULY 31, 2010



Officers and Directors (concluded)       
  Position(s)           
Name, Address  Held with  Length of         
and Year of Birth  Funds  Time Served  Principal Occupation(s) During Past 5 Years     
Officers1             
Anne Ackerley  President2  Since  Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 
55 East 52nd Street  and Chief  20093  2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer 
New York, NY 10055  Executive    of BlackRock’s US Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 
1962  Officer    to 2006.       
Brendan Kyne  Vice  Since  Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product 
55 East 52nd Street  President  2009  Development and Management for BlackRock’s US Retail Group since 2009, Co-head thereof from 2007 to 
New York, NY 10055      2009; Vice President of BlackRock, Inc. from 2005 to 2008.   
1977             
Neal Andrews  Chief  Since  Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund 
55 East 52nd Street  Financial  2007  Accounting and Administration at PNC Global Investment Servicing (US) Inc. from 1992 to 2006. 
New York, NY 10055  Officer           
1966             
Jay Fife  Treasurer  Since  Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch 
55 East 52nd Street    2007  Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director 
New York, NY 10055      of MLIM Fund Services Group from 2001 to 2006.     
1970             
Brian Kindelan  Chief  Since  Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of 
55 East 52nd Street  Compliance  2007  BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004. 
New York, NY 10055  Officer           
1959             
Howard Surloff  Secretary  Since  Managing Director and General Counsel of US Funds at BlackRock, Inc. since 2006; General Counsel (US) of 
55 East 52nd Street    2007  Goldman Sachs Asset Management, L.P. from 1993 to 2006.   
New York, NY 10055             
1965             
  1 Officers of the Funds serve at the pleasure of the Boards.       
  2 For MNE, MZA, MYC and MYJ.         
  3 Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.   
Investment Advisor  Custodians    Transfer Agent  Auction Agent  Accounting Agent  Legal Counsel 
BlackRock Advisors, LLC  State Street Bank  Common Shares  Preferred Shares  State Street Bank  Skadden, Arps, Slate, 
Wilmington, DE 19809  and Trust Company4  Computershare Trust  BNY Mellon  and Trust Company  Meagher & Flom LLP 
  Boston, MA 02111  Company, N.A.4  Shareowner Services  Princeton, NJ 08540  New York, NY 10036 
Sub-Advisor      Providence, RI 02940  Jersey City, NJ 07310     
BlackRock Investment  The Bank of        Independent Registered  Address of the Funds 
Management, LLC  New York Mellon5  BNY Mellon    Public Accounting Firm  100 Bellevue Parkway 
Plainsboro, NJ 08536  New York, NY 10286  Shareowner Services5    Deloitte & Touche LLP  Wilmington, DE 19809 
      Jersey City, NJ 07310    Princeton, NJ 08540   

 

4 For MNE.
5 For MZA, MYC, MYF and MYJ.

Effective March 31, 2010, G. Nicholas Beckwith, III, a Director
of the Funds, resigned. The Funds’ Board extends its best
wishes to Mr. Beckwith.

ANNUAL REPORT

JULY 31, 2010

53



Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, 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 share-
holder 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) 441-7762.

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commision (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
the operation of the Public Reference Room 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) 441-7762.

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) 441-7762;
(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) 441-7762 and (2) on the
SEC’s website at http://www.sec.gov.

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 pro-
vide 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 com-
prises part of the financial information included in this report.

Fund Certification

Certain Funds are listed for trading on the New York Stock Exchange
(“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.

54 ANNUAL REPORT

JULY 31, 2010



Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation 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 applica-
tions, 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 pro-
cedures relating to the proper storage and disposal of such information.

ANNUAL REPORT

JULY 31, 2010

55




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 auc-

tions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.




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 and principal accounting officer, 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 or trustees, as
applicable (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:
Kent Dixon (retired effective December 31, 2009)
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.



Item 4 – Principal Accountant Fees and Services           
  (a) Audit Fees  (b) Audit-Related Fees1  (c) Tax Fees2  (d) All Other Fees3 
  Current  Previous  Current  Previous  Current  Previous  Current  Previous 
  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year 
Entity Name  End  End  End  End  End  End  End  End 
BlackRock                 
MuniYield  $33,400  $33,400  $3,500  $3,500  $6,100  $6,100  $0  $1,028 
California Fund, Inc.                 

 

1 The nature of the services include 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 include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (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 registrant’s affiliated
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 operation 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., 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 audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

  Current Fiscal Year  Previous Fiscal Year 
Entity Name  End  End 
BlackRock MuniYield  $20,377  $413,128 

 



California Fund, Inc.

(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%

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)):

Kent Dixon (retired effective December 31, 2009)
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.
(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 securities to the Fund’s investment adviser (“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,
2010.

(a)(1) The registrant is managed by a team of investment professionals comprised of
Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, Inc. and Walter
O’Connor, Managing Director at BlackRock, Inc. Each is a member of BlackRock,
Inc.’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. Jaeckel and O’Connor have been
members of the registrant’s portfolio management team since 2006 and 1992,
respectively.

Portfolio Manager  Biography         
Theodore R. Jaeckel, Jr.  Managing Director at BlackRock, Inc. since 2006; Managing Director of 
    Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; 
    Director of MLIM from 1997 to 2005.     
Walter O’Connor  Managing Director of BlackRock, Inc. since 2006; Managing Director of 
    MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.   
(a)(2) As of July 31, 2010:           
  (ii) Number of Other Accounts Managed  (iii) Number of Other Accounts and 
  and Assets by Account Type    Assets for Which Advisory Fee is 
          Performance-Based   
  Other  Other Pooled    Other  Other Pooled   
(i) Name of  Registered  Investment  Other  Registered  Investment  Other 
Portfolio Manager  Investment  Vehicles  Accounts  Investment  Vehicles  Accounts 
  Companies      Companies     
Theodore R. Jaeckel, Jr.  72  0  0  0  0  0 
  $19.93 Billion  $0  $0  $0  $0  $0 
Walter O’Connor  72  0  0  0  0  0 
  $19.93 Billion  $0  $0  $0  $0  $0 

 

(iv) Potential Material Conflicts of Interest

BlackRock and its affiliates (collectively, herein “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, its affiliates and significant shareholders and any officer, director, stockholder
or employee may or may not have an interest in the securities whose purchase and sale
BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant
shareholders, or any officer, director, stockholder, 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’s (or its
affiliates’ or significant shareholders’) officers, directors or employees are directors or
officers, or companies as to which BlackRock 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. Each portfolio manager
also may manage accounts whose investment strategies may at times be opposed to the
strategy utilized for a fund. In this connection, it should be noted that a portfolio manager
may currently manage certain accounts that are subject to performance fees. In addition, a
portfolio manager may assist in managing certain hedge funds and may be entitled to
receive a portion of any incentive fees earned on such funds and a portion of such incentive
fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the
future manage other such accounts or funds and may be entitled to receive incentive fees.

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
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve 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.

(a)(3) As of July 31, 2010:

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 such as its Long-Term Retention and Incentive Plan and Restricted Stock
Program.

Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

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 seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.
In most cases, including for the portfolio managers of the Fund, 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. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the portfolio managers, such benchmarks include
a combination of market-based indices (e.g., Barclays Capital Municipal Bond Index),
certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio managers’ compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on both a pre-tax and after-tax basis over various time periods
including 1, 3, 5 and 10-year periods, as applicable.

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. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in 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.

Long-Term Retention and Incentive Plan (“LTIP”) — 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 each
received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to
eligible BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Messrs. Jaeckel and O’Connor have each participated 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 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 6% of eligible pay contributed to the plan capped
at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible
compensation. The RSP offers a range of investment options, including registered
investment companies managed by the firm. BlackRock contributions follow the investment
direction set by participants for their own contributions or, absent employee investment
direction, are invested into a balanced portfolio. The ESPP allows for investment in
BlackRock 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
or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities – As of July 31, 2010.

Portfolio Manager  Dollar Range of Equity Securities 
  Beneficially Owned 
Theodore R. Jaeckel, Jr.  None 
Walter O’Connor  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 – On September 17, 2010, the Board of Directors of the Fund amended and restated in its
entirety the bylaws of the Fund (the "Amended and Restated Bylaws"). The Amended and
Restated Bylaws were deemed effective as of September 17, 2010 and set forth, among
other things, the processes and procedures that shareholders of the Fund must follow, and
specifies additional information that shareholders of the Fund must provide, when proposing
director nominations at any annual meeting or special meeting in lieu of an annual meeting
or other business to be considered at an annual meeting or special meeting.

Item 11 – Controls and Procedures

11(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.

11(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

12(a)(1) – Code of Ethics – See Item 2

12(a)(2) – Certifications – Attached hereto



12(a)(3) – Not Applicable

12(b) – 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 California Fund, Inc.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock MuniYield California Fund, Inc.

Date: October 6, 2010

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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield California Fund, Inc.

Date: October 6, 2010

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

Date: October 6, 2010