UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-07083
Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Arizona 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: 07/31/2012
Date of reporting period: 10/31/2011
Item 1 – Schedule of Investments
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniYield Arizona Fund, Inc.
(MZA) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Arizona 135.2% |
|
|
|
|
|
|
|
Corporate 7.1% |
|
|
|
|
|
|
|
Maricopa County Pollution Control Corp., |
|
$ |
2,850 |
|
$ |
2,989,736 |
|
Pima County IDA, RB, Tucson Electric |
|
|
500 |
|
|
511,135 |
|
Pima County IDA, RB, Tucson Electric |
|
|
1,000 |
|
|
945,330 |
|
|
|
|
|
|
|
4,446,201 |
|
County/City/Special District/School District 48.4% |
|
|
|
|
|
|
|
City of Glendale Arizona, RB (NPFGC), |
|
|
2,055 |
|
|
2,184,938 |
|
City of Tucson Arizona, COP: |
|
|
|
|
|
|
|
Series A (NPFGC), 5.00%, 7/01/20 |
|
|
1,500 |
|
|
1,597,365 |
|
(AGC), 5.00%, 7/01/29 |
|
|
1,000 |
|
|
1,048,580 |
|
County of Pinal Arizona, COP: |
|
|
|
|
|
|
|
5.00%, 12/01/26 |
|
|
1,250 |
|
|
1,267,037 |
|
5.00%, 12/01/29 |
|
|
1,250 |
|
|
1,258,100 |
|
Gila County Unified School District No. |
|
|
500 |
|
|
528,010 |
|
Gilbert Public Facilities Municipal |
|
|
2,000 |
|
|
2,196,280 |
|
Gladden Farms Community Facilities |
|
|
750 |
|
|
721,155 |
|
Greater Arizona Development Authority, |
|
|
1,155 |
|
|
1,173,919 |
|
Marana Municipal Property Corp., RB, |
|
|
2,500 |
|
|
2,600,350 |
|
Maricopa County Community College |
|
|
1,000 |
|
|
999,070 |
|
Maricopa County Public Finance Corp., |
|
|
1,900 |
|
|
2,038,567 |
|
Maricopa County Unified School District |
|
|
1,000 |
|
|
1,117,200 |
|
Mohave County Unified School District |
|
|
1,000 |
|
|
1,081,190 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Arizona (continued) |
|
|
|
|
|
|
|
County/City/Special District/School District |
|
|
|
|
|
|
|
Phoenix Civic Improvement Corp., RB: |
|
|
|
|
|
|
|
Senior Lien, Series B, AMT (FGIC), |
|
$ |
450 |
|
$ |
451,926 |
|
Phoenix Civic Improvement Corp., RB (concluded): |
|
|
|
|
|
|
|
Subordinate, Civic Plaza Expansion |
|
|
3,325 |
|
|
3,380,428 |
|
Scottsdale Municipal Property Corp. |
|
|
|
|
|
|
|
Arizona, RB, Water & Sewer |
|
|
1,500 |
|
|
1,669,440 |
|
State of Arizona, RB, Series A (AGM), |
|
|
1,930 |
|
|
2,034,336 |
|
Vistancia Community Facilities District |
|
|
|
|
|
|
|
6.75%, 7/15/22 |
|
|
1,275 |
|
|
1,298,906 |
|
5.75%, 7/15/24 |
|
|
750 |
|
|
788,932 |
|
Yuma County Library District, GO |
|
|
1,000 |
|
|
1,054,350 |
|
|
|
|
|
|
|
30,490,079 |
|
Education 11.9% |
|
|
|
|
|
|
|
Arizona State University, RB, Series |
|
|
|
|
|
|
|
6.00%, 7/01/25 |
|
|
970 |
|
|
1,119,254 |
|
6.00%, 7/01/26 |
|
|
745 |
|
|
856,758 |
|
6.00%, 7/01/27 |
|
|
425 |
|
|
487,122 |
|
6.00%, 7/01/28 |
|
|
400 |
|
|
456,172 |
|
Maricopa County IDA Arizona, RB, |
|
|
700 |
|
|
546,609 |
|
Pima County IDA, RB, Arizona Charter |
|
|
|
|
|
|
|
6.70%, 7/01/21 |
|
|
710 |
|
|
710,071 |
|
6.75%, 7/01/31 |
|
|
985 |
|
|
943,108 |
|
Pima County IDA, Refunding RB: |
|
|
|
|
|
|
|
Arizona Charter Schools |
|
|
995 |
|
|
818,228 |
|
Charter Schools II, Series A, |
|
|
560 |
|
|
560,101 |
|
University of Arizona, COP, University of |
|
|
1,000 |
|
|
1,015,160 |
|
|
|
|
|
|
|
7,512,583 |
|
|
Portfolio Abbreviations |
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:
|
|
AGC |
Assured Guaranty Corp. |
AGM |
Assured Guaranty Municipal Corp. |
AMBAC |
American Municipal Bond Assurance Corp. |
AMT |
Alternative Minimum Tax (subject to) |
CAB |
Capital Appreciation Bonds |
COP |
Certificates of Participation |
FGIC |
Financial Guaranty Insurance Co. |
GO |
General Obligation Bonds |
IDA |
Industrial Development Authority |
NPFGC |
National Public Finance Guarantee Corp. |
RB |
Revenue Bonds |
Syncora |
Syncora Guarantee |
|
|
|
|
|
|
|
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|
|
|
BLACKROCK MUNIYIELD ARIZONA FUND, INC. |
OCTOBER 31, 2011 |
1 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniYield Arizona Fund, Inc.
(MZA) |
|
|
|
|
|
|
|
|
Municipal
Bonds |
|
Par |
|
Value |
|
||
Arizona (continued) |
|
|
|
|
|
|
|
Health 22.8% |
|
|
|
|
|
|
|
Arizona Health Facilities Authority, RB, |
|
$ |
500 |
|
$ |
493,900 |
|
Arizona Health Facilities Authority, |
|
|
|
|
|
|
|
6.00%, 1/01/30 |
|
|
1,500 |
|
|
1,532,730 |
|
5.50%, 1/01/38 |
|
|
2,800 |
|
|
2,892,792 |
|
Maricopa County IDA, RB, Catholic |
|
|
170 |
|
|
177,077 |
|
Maricopa County IDA Arizona, |
|
|
|
|
|
|
|
Catholic Healthcare West, |
|
|
1,850 |
|
|
1,912,789 |
|
Samaritan Health Services, Series A |
|
|
1,000 |
|
|
1,198,610 |
|
Scottsdale IDA, RB, Scottsdale |
|
|
1,800 |
|
|
1,775,214 |
|
University Medical Center Corp. Arizona, |
|
|
|
|
|
|
|
6.00%, 7/01/39 |
|
|
1,000 |
|
|
1,007,920 |
|
6.50%, 7/01/39 |
|
|
500 |
|
|
519,485 |
|
Yavapai County IDA Arizona, RB, Yavapai |
|
|
1,800 |
|
|
1,804,230 |
|
Yavapai County IDA Arizona, Refunding |
|
|
1,000 |
|
|
1,072,660 |
|
|
|
|
|
|
|
14,387,407 |
|
Housing 3.6% |
|
|
|
|
|
|
|
Maricopa County & Phoenix Industrial |
|
|
|
|
|
|
|
Series A-1, 5.75%, 5/01/40 |
|
|
370 |
|
|
379,009 |
|
Series A-2, 5.80%, 7/01/40 |
|
|
285 |
|
|
290,358 |
|
Maricopa County IDA Arizona, RB, Series |
|
|
492 |
|
|
518,289 |
|
Phoenix & Pima County IDA, RB, Series |
|
|
197 |
|
|
197,416 |
|
Phoenix & Pima County IDA, Refunding |
|
|
415 |
|
|
417,606 |
|
Phoenix IDA Arizona, Refunding RB, |
|
|
494 |
|
|
497,627 |
|
|
|
|
|
|
|
2,300,305 |
|
State 15.5% |
|
|
|
|
|
|
|
Arizona School Facilities Board, COP: |
|
|
|
|
|
|
|
5.13%, 9/01/21 |
|
|
1,000 |
|
|
1,094,960 |
|
5.75%, 9/01/22 |
|
|
2,000 |
|
|
2,255,740 |
|
Arizona Sports & Tourism Authority, RB, |
|
|
500 |
|
|
491,975 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Arizona (concluded) |
|
|
|
|
|
|
|
State (concluded) |
|
|
|
|
|
|
|
Arizona
State Transportation Board, RB, |
|
$ |
4,000 |
|
$ |
4,292,320 |
|
Greater
Arizona Development Authority, |
|
|
1,600 |
|
|
1,623,904 |
|
|
|
|
|
|
|
9,758,899 |
|
Transportation 6.1% |
|
|
|
|
|
|
|
Phoenix Civic Improvement Corp., RB: |
|
|
|
|
|
|
|
Junior Lien,
Series A, 5.00%, |
|
|
1,000 |
|
|
1,022,520 |
|
Senior Lien,
Series A, 5.00%, |
|
|
1,000 |
|
|
1,037,210 |
|
Senior Lien,
Series B, AMT (NPFGC), |
|
|
1,000 |
|
|
1,020,950 |
|
Senior Lien,
Series B, AMT (NPFGC), |
|
|
755 |
|
|
756,608 |
|
|
|
|
|
|
|
3,837,288 |
|
Utilities 19.8% |
|
|
|
|
|
|
|
County of
Pima Arizona, RB, System |
|
|
750 |
|
|
834,038 |
|
Gilbert
Water Resource Municipal |
|
|
900 |
|
|
933,048 |
|
Phoenix
Civic Improvement Corp., RB, |
|
|
2,500 |
|
|
2,574,350 |
|
Phoenix
Civic Improvement Corp., |
|
|
2,000 |
|
|
2,368,960 |
|
Pinal County
IDA Arizona, RB, San |
|
|
500 |
|
|
454,195 |
|
Salt River
Project Agricultural |
|
|
|
|
|
|
|
5.00%, 1/01/24 |
|
|
1,000 |
|
|
1,111,790 |
|
5.00%, 1/01/38 |
|
|
2,500 |
|
|
2,621,375 |
|
Salt River
Project Agricultural |
|
|
1,500 |
|
|
1,554,630 |
|
|
|
|
|
|
|
12,452,386 |
|
Total Municipal Bonds in Arizona |
|
|
|
|
|
85,185,148 |
|
Guam 1.6% |
|
|
|
|
|
|
|
Utilities 1.6% |
|
|
|
|
|
|
|
Guam Government Waterworks |
|
|
|
|
|
|
|
Authority, Refunding RB, Water, |
|
|
|
|
|
|
|
5.88%, 7/01/35 |
|
|
1,000 |
|
|
987,950 |
|
Total Municipal Bonds in Guam |
|
|
|
|
|
987,950 |
|
|
|
|
|
|
|
2 |
BLACKROCK MUNIYIELD ARIZONA FUND, INC. |
OCTOBER 31, 2011 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniYield Arizona Fund, Inc.
(MZA) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Puerto Rico 11.9% |
|
|
|
|
|
|
|
State 8.5% |
|
|
|
|
|
|
|
Commonwealth of Puerto Rico, GO, |
|
$ |
800 |
|
$ |
827,408 |
|
Puerto Rico Public Buildings Authority, |
|
|
700 |
|
|
736,785 |
|
Puerto Rico Sales Tax Financing Corp., |
|
|
1,500 |
|
|
1,662,510 |
|
Puerto Rico Sales Tax Financing Corp., |
|
|
|
|
|
|
|
CAB, Series A (NPFGC), 5.72%, |
|
|
9,530 |
|
|
1,483,916 |
|
First Sub, Series C, 6.00%, |
|
|
600 |
|
|
651,792 |
|
|
|
|
|
|
|
5,362,411 |
|
Transportation 0.1% |
|
|
|
|
|
|
|
Puerto Rico Highway & Transportation |
|
|
50 |
|
|
54,565 |
|
Utilities 3.3% |
|
|
|
|
|
|
|
Puerto Rico Electric Power Authority, RB, |
|
|
|
|
|
|
|
5.38%, 7/01/24 |
|
|
1,000 |
|
|
1,054,860 |
|
5.50%, 7/01/38 |
|
|
1,000 |
|
|
1,020,590 |
|
|
|
|
|
|
|
2,075,450 |
|
Total Municipal Bonds in Puerto Rico |
|
|
|
|
|
7,492,426 |
|
US Virgin Islands 0.8% |
|
|
|
|
|
|
|
Corporate 0.8% |
|
|
|
|
|
|
|
Virgin Islands Public Finance Authority, |
|
|
500 |
|
|
477,365 |
|
Total Municipal Bonds in the US Virgin Islands |
|
|
|
|
|
477,365 |
|
Total Municipal Bonds 149.5% |
|
|
|
|
|
94,142,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Municipal Bonds Transferred to Tender |
|
|
|
|
|
|
|
Arizona 11.2% |
|
|
|
|
|
|
|
Utilities 11.2% |
|
|
|
|
|
|
|
City of Mesa Arizona, RB, 5.00%, |
|
|
3,000 |
|
|
3,183,990 |
|
Phoenix Arizona, Civic Improvement |
|
|
3,000 |
|
|
3,210,540 |
|
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to Tender |
|
Par |
|
Value |
|
||
Arizona (concluded) |
|
|
|
|
|
|
|
Utilities (concluded) |
|
|
|
|
|
|
|
Salt River Project Agricultural |
|
$ |
660 |
|
$ |
692,043 |
|
|
|
|
|
|
|
7,086,573 |
|
Total Municipal Bonds Transferred to |
|
|
|
|
|
7,086,573 |
|
Total Long-Term Investments |
|
|
|
|
|
101,229,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Short-Term Securities |
|
Shares |
|
|
|
|
|
BIF Arizona Municipal Money Fund, |
|
|
1,354,745 |
|
|
1,354,745 |
|
Total Short-Term Securities |
|
|
|
|
|
1,354,745 |
|
Total Investments |
|
|
|
|
|
102,584,207 |
|
Other Assets Less Liabilities 1.6% |
|
|
|
|
|
1,039,807 |
|
Liability for TOB Trust Certificates, Including
Interest |
|
|
|
|
|
(3,331,722 |
) |
VRDP Shares, at Liquidation Value (59.2)% |
|
|
|
|
|
(37,300,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
$ |
62,992,292 |
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
||||
|
|||||
|
Aggregate cost |
|
$ |
96,187,572 |
|
|
Gross unrealized appreciation |
|
$ |
4,015,714 |
|
|
Gross unrealized depreciation |
|
|
(949,079 |
) |
|
Net unrealized appreciation |
|
$ |
3,066,635 |
|
|
|
|
|
|
|
(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 is as of report date. |
||||
|
|
||||
(b) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
JPMorgan Chase Securities |
|
$ |
493,900 |
|
$ |
8,900 |
|
|
||||||||
(c) |
Security is collateralized by Municipal or US Treasury obligations. |
|||||||
|
|
|||||||
(d) |
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. |
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|
|
|||||||
(e) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|||||||
|
|
|||||||
(f) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. |
|
|
|
|
|
|
|
|
|
BLACKROCK MUNIYIELD ARIZONA FUND, INC. |
OCTOBER 31, 2011 |
3 |
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniYield Arizona Fund, Inc. (MZA) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIF Arizona |
|
|
2,960,530 |
|
|
(1,605,785 |
) |
|
1,354,745 |
|
$ |
|
|
|
||||||||||||||
(h) |
Represents the current yield as of report date. |
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|
|
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|
For Fund compliance purposes, the Funds sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
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|
Fair Value Measurements Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows: |
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|
|
|
Level 1 unadjusted 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) |
|
|
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|
|
Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds own assumptions used in determining the fair value of investments) |
|
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Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Funds perceived risk of investing in those securities. For information about the Funds policy regarding valuation of investments and other significant accounting policies, please refer to the Funds most recent financial statements as contained in its annual report. |
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The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Funds investments: |
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Valuation Inputs |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Investments: |
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Long-Term |
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Investments1 |
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$ |
101,229,462 |
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$ |
101,229,462 |
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Short-Term |
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Securities |
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$ |
1,354,745 |
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1,354,745 |
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Total |
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$ |
1,354,745 |
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$ |
101,229,462 |
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$ |
102,584,207 |
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1 |
See above Schedule of Investments for values in each sector. |
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4 |
BLACKROCK MUNIYIELD ARIZONA FUND, INC. |
OCTOBER 31, 2011 |
Item 2 – |
Controls and Procedures |
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2(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. |
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2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
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Item 3 – |
Exhibits |
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Certifications – Attached hereto |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
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BlackRock MuniYield Arizona Fund, Inc. |
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By: | /s/ John M. Perlowski |
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John M. Perlowski |
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Chief Executive Officer (principal executive officer) of |
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BlackRock MuniYield Arizona Fund, Inc. |
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Date: December 21, 2011 |
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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. |
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By: | /s/ John M. Perlowski |
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John M. Perlowski |
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Chief Executive Officer (principal executive officer) of |
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BlackRock MuniYield Arizona Fund, Inc. |
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Date: December 21, 2011 |
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By: | /s/ Neal J. Andrews |
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Neal J. Andrews |
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Chief Financial Officer (principal financial officer) of |
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BlackRock MuniYield Arizona Fund, Inc. |
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Date: December 21, 2011 |