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 811-6660 Name of Fund: MuniYield Quality Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., President, MuniYield Quality Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 10/31/05 Date of reporting period: 11/01/04 - 1/31/05 Item 1 - Schedule of Investments MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Alaska - 0.8% $ 850 Alaska State Housing Finance Corporation, General Housing Revenue Bonds, Series A, 5.25% due 12/01/2034 (d) $ 911 2,100 Alaska State International Airports Revenue Bonds, Series B, 5.75% due 10/01/2019 (a) 2,412 500 Valdez, Alaska, Marine, Terminal Revenue Refunding Bonds (BP Pipelines Inc. Project), VRDN, Series C, 1.83% due 7/01/2037 (l) 500 ----------------------------------------------------------------------------------------------------------------------------------- Arizona - 0.6% 2,345 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB, Series 511X, 8.89% due 7/01/2014 (a)(i) 2,941 ----------------------------------------------------------------------------------------------------------------------------------- California - 18.6% 4,150 Alameda Corridor Transportation Authority, California, Revenue Refunding Bonds, Subordinated Lien, Series A, 5.525%** due 10/01/2025 (a) 3,024 California State Department of Water Resources, Power Supply Revenue Bonds, Series A: 1,400 5.375% due 5/01/2021 1,531 1,000 5.375% due 5/01/2022 (g) 1,101 California State, GO, Refunding: 5,700 5.25% due 9/01/2026 6,130 6,000 5.25% due 2/01/2030 (b) 6,427 7,700 5.25% due 2/01/2030 (g) 8,248 2,850 California State, GO, Refunding, ROCS, Series II-R-272, 8.539% due 2/01/2033 (i)(j) 3,182 California State, Various Purpose, GO: 3,300 5.50% due 4/01/2028 3,601 2,500 5.25% due 11/01/2029 2,649 3,200 5.50% due 11/01/2033 3,465 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds: 5,000 RIB, Series RR II R 285X, 9.026% due 6/01/2043 (b)(i) 5,862 7,080 RIB, Series RR II R 287X, 9.279% due 6/01/2038 (i)(k) 8,454 4,050 Series B, 5.60% due 6/01/2028 4,290 3,000 Series B, 5.50% due 6/01/2033 (b) 3,265 1,870 Series B, 5.625% due 6/01/2033 (b) 2,058 1,600 Series B, 5.50% due 6/01/2043 (b) 1,738 2,800 Los Angeles, California, Unified School District, GO, Series A, 5% due 1/01/2028 (g) 2,941 2,000 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay Redevelopment Project), 5.125% due 6/15/2033 (a) 2,093 16,895 San Francisco, California, City and County, COP (San Bruno Jail No. 3), 5.25% due 10/01/2033 (a) 18,099 Portfolio Abbreviations To simplify the listings of MuniYield Quality Fund, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts EDA Economic Development Authority GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDB Industrial Development Board PCR Pollution Control Revenue Bonds RIB Residual Interest Bonds RITR Residual Interest Trust Receipts ROCS Reset Option Certificates S/F Single-Family VRDN Variable Rate Demand Notes MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Colorado - 6.4% Colorado Health Facilities Authority Revenue Bonds, Series A: $ 1,650 (Catholic Health Initiatives), 5.50% due 3/01/2032 (c) $ 1,862 1,600 (Covenant Retirement Communities Inc.), 5.50% due 12/01/2027 (j) 1,720 1,000 (Covenant Retirement Communities Inc.), 5.50% due 12/01/2033 (j) 1,067 Colorado Housing and Finance Authority, Revenue Refunding Bonds, AMT: 1,530 (S/F Program), Series B-2, 6.80% due 2/01/2031 (g) 1,597 805 (S/F Program), Series C-2, 8.40% due 10/01/2021 (e)(g) 823 1,175 Series C-2, 7.05% due 4/01/2031 (e)(g) 1,182 1,715 Series C-2, 7.25% due 10/01/2031 (a) 1,759 465 Series E-2, 7% due 2/01/2030 (g) 473 6,405 Denver, Colorado, City and County, COP, Series B, 5.75% due 12/01/2010 (a)(h) 7,382 15,600 Northwest Parkway, Colorado, Public Highway Authority, Capital Appreciation Revenue Bonds, Senior Convertible, Series C, 5.345%** due 6/15/2025 (f) 12,637 ----------------------------------------------------------------------------------------------------------------------------------- District of Columbia - 0.6% 2,500 District of Columbia Revenue Refunding Bonds (Catholic University of America Project), 5.625% due 10/01/2029 (a) 2,765 ----------------------------------------------------------------------------------------------------------------------------------- Florida - 0.5% 2,240 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (j) 2,434 ----------------------------------------------------------------------------------------------------------------------------------- Georgia - 1.2% 4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power Corporation-Scherer), Series A, 6.80% due 1/01/2011 5,614 ----------------------------------------------------------------------------------------------------------------------------------- Hawaii - 0.5% 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (f) 2,241 ----------------------------------------------------------------------------------------------------------------------------------- Illinois - 26.6% Chicago, Illinois, Board of Education, GO (a): 1,750 (Chicago School Reform Project), Series A, 5.25% due 12/01/2030 1,868 5,000 RIB, Series 467, 9.39% due 12/01/2027 (i) 5,989 Chicago, Illinois, Capital Appreciation, GO, Project and Refunding, Series A (g): 1,000 5.422%** due 1/01/2027 799 1,000 5.435%** due 1/01/2028 794 1,000 5.448%** due 1/01/2029 790 1,000 5.46%** due 1/01/2030 798 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities) (g): 5,000 5.125% due 1/01/2028 5,206 2,500 5.444%** due 1/01/2029 2,532 5,000 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding Bonds, Third Lien, AMT, Series A, 5.50% due 1/01/2022 (g) 5,414 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT, Series B-2: 3,400 5.75% due 1/01/2023 (f) 3,797 4,000 5.75% due 1/01/2024 (f) 4,451 3,300 6% due 1/01/2029 (b) 3,709 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, AMT: 2,665 3rd Lien, Series A-2, 5.75% due 1/01/2021 (f) 2,986 6,835 DRIVERS, Series 250, 9.318% due 1/01/2021 (g)(i) 8,381 5,000 RIB, Series 994X, 8.58% due 1/01/2032 (g)(i) 5,466 6,200 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2026 (a) 6,971 MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Illinois (concluded) $ 2,130 Illinois Development Finance Authority Revenue Bonds (Presbyterian Home Lake Project), Series B, 6.25% due 9/01/2017 (f) $ 2,286 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds (a): 31,350 5.224%** due 6/15/2030 25,332 5,500 5% due 6/15/2032 5,717 10,000 Illinois State, GO, First Series, 5.50% due 8/01/2018 (f) 11,130 3,750 Illinois Student Assistance Commission, Student Loan Revenue Refunding Bonds, AMT, Sub-Series CC, 6.875% due 3/01/2015 3,757 5,295 Kane and De Kalb Counties, Illinois, Community Unity School District Number 302, GO, 5.80% due 2/01/2022 (d) 6,160 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax, Revenue Refunding Bonds (McCormick Place Expansion Project): 7,000 5.50% due 12/15/2024 (d) 7,791 3,500 Series B, 5.75% due 6/15/2023 (g) 4,040 ----------------------------------------------------------------------------------------------------------------------------------- Indiana - 1.5% 4,500 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25% due 6/01/2029 (d) 4,858 2,000 Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue Bonds (Waterworks Project), Series A, 5.25% due 7/01/2033 (g) 2,139 ----------------------------------------------------------------------------------------------------------------------------------- Louisiana - 3.9% 8,500 Louisiana Local Government, Environmental Facilities, Community Development Authority Revenue Bonds (Capital Projects and Equipment Acquisition), Series A, 6.30% due 7/01/2030 (a) 9,323 6,800 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax, Sub-Series A, 5.25% due 7/15/2028 (a) 7,319 1,900 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital Revenue Bonds (Terrebonne General Medical Center Project), 5.50% due 4/01/2033 (a) 2,062 ----------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 4.4% Massachusetts Bay, Massachusetts, Transportation Authority, General Transportation System, Revenue Refunding Bonds, Series A (g): 3,730 7% due 3/01/2011 4,514 3,550 7% due 3/01/2014 4,432 7,005 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60% due 1/01/2045 (f) 7,274 1,915 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS, AMT, Series 501, 8.814% due 7/01/2009 (a)(i) 2,137 2,400 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due 1/01/2028 (d) 2,588 ----------------------------------------------------------------------------------------------------------------------------------- Michigan - 5.6% Detroit, Michigan, City School District, GO, Series A (f): 4,000 5.50% due 5/01/2019 4,497 3,625 5.50% due 5/01/2020 4,076 3,040 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 3,216 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Project) (b): 3,100 5.45% due 9/01/2029 3,423 1,700 AMT, Series A, 5.50% due 6/01/2030 1,823 3,300 AMT, Series C, 5.65% due 9/01/2029 3,529 5,800 AMT, Series C, 5.45% due 12/15/2032 6,142 MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Nebraska - 0.5% $ 2,300 Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc. Project), AMT, 5.90% due 11/01/2027 $ 2,510 ----------------------------------------------------------------------------------------------------------------------------------- Nevada - 5.5% 4,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project), Series A, 5.50% due 9/01/2033 (j) 4,386 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2 (d): 2,000 Series A-2, 5% due 7/01/2030 2,079 4,100 Series A-2, 5% due 7/01/2036 4,246 3,000 Series B, 5.25% due 7/01/2034 3,148 Director of the State of Nevada, Department of Business and Industry Revenue Bonds (Las Vegas Monorail Company Project), First Tier (a): 1,000 5.625% due 1/01/2032 1,110 4,400 5.375% due 1/01/2040 4,656 5,710 Washoe County, Nevada, School District, GO, 5.875% due 12/01/2009 (f)(h) 6,477 ----------------------------------------------------------------------------------------------------------------------------------- New Hampshire - 3.5% 10,000 New Hampshire Health and Education Facilities Authority Revenue Bonds (Dartmouth-Hitchcock Obligation Group, 5.50% due 8/01/2027 (f) 11,238 5,000 New Hampshire State Business Finance Authority, PCR, Refunding (Public Service Company), AMT, Series D, 6% due 5/01/2021 (g) 5,501 ----------------------------------------------------------------------------------------------------------------------------------- New Jersey - 4.8% New Jersey EDA, Cigarette Tax Revenue Bonds: 7,150 5.50% due 6/15/2024 7,814 910 5.75% due 6/15/2029 966 1,385 5.50% due 6/15/2031 1,440 2,750 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2031 (g) 2,973 3,000 New Jersey EDA, Revenue Bonds, ROCS, Series II-R-309-2, 9.026% due 6/15/2031 (i) 3,526 6,100 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN, Series C-3, 1.82% due 1/01/2024 (f)(l) 6,100 ----------------------------------------------------------------------------------------------------------------------------------- New York - 10.6% 3,500 Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), 5.75% due 5/01/2024 (f) 4,060 8,085 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, RITR, Series FR-6, 9.275% due 6/15/2026 (g)(i) 8,990 New York City, New York, GO (b): 2,410 Series B, 5.875% due 8/15/2006 (h) 2,574 2,590 Series B, 5.875% due 8/15/2013 2,755 1,425 Series F, 5.75% due 2/01/2019 1,494 New York City, New York, GO (i): 3,500 DRIVERS, Series 194, 9.381% due 2/01/2015 (f) 3,840 6,920 RIB, Series 394, 9.614% due 8/01/2016 (g) 8,980 9,325 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2006 (f)(h) 9,773 7,320 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 6/01/2022 (a) 7,925 ----------------------------------------------------------------------------------------------------------------------------------- Ohio - 1.0% 2,500 Columbus, Ohio, City School District, GO (School Facilities Construction and Improvements), 5.25% due 12/01/2027 (f) 2,726 2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds (Consolidated Health System-Jackson Hospital), 6.125% due 10/01/2020 (j) 2,235 MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Oklahoma - 0.8% Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa International Airport), AMT (d): $ 1,250 Series A, 6% due 6/01/2020 $ 1,485 1,000 Series B, 6% due 6/01/2019 1,113 1,000 Series B, 6.125% due 6/01/2026 1,119 ----------------------------------------------------------------------------------------------------------------------------------- Oregon - 2.0% 7,500 Portland, Oregon, Sewer System Revenue Bonds, RIB, Series 386, 9.96% due 8/01/2020 (d)(i) 9,364 ----------------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 8.0% 2,000 Allegheny County, Pennsylvania, Port Authority, Special Transportation Revenue Bonds, 6% due 3/01/2009 (g)(h) 2,265 800 Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue Bonds, 5.50% due 12/01/2030 (g) 888 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds (The School District of Philadelphia Project) (f): 6,000 5.25% due 6/01/2025 6,578 11,750 5% due 6/01/2033 12,203 6,250 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue Bonds, Series B, 5.50% due 10/01/2021 (f) 7,039 Philadelphia, Pennsylvania, School District, GO, Series B (d): 1,500 5.625% due 8/01/2020 1,679 3,670 5.625% due 8/01/2021 4,104 2,000 5.625% due 8/01/2022 2,231 1,155 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 1,228 ----------------------------------------------------------------------------------------------------------------------------------- Rhode Island - 0.6% 2,500 Providence, Rhode Island, GO, Series A, 5.70% due 7/15/2007 (f)(h) 2,714 ----------------------------------------------------------------------------------------------------------------------------------- South Carolina - 1.5% 3,045 South Carolina State Public Service Authority, Revenue Refunding Bonds, DRIVERS, Series 277, 9.346% due 1/01/2022 (g)(h)(i) 3,341 3,800 Spartanburg County, South Carolina, Solid Waste Disposal Facilities Revenue Bonds (BMW Project), AMT, 7.55% due 11/01/2024 3,984 ----------------------------------------------------------------------------------------------------------------------------------- Tennessee - 6.2% 17,000 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment Corporation), 5.875% due 10/01/2024 (a) 19,287 5,000 Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds, AMT, Series D, 6.25% due 3/01/2018 (a) 5,640 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C (a): 2,075 6.10% due 7/01/2013 2,161 2,390 6.20% due 7/01/2015 2,508 ----------------------------------------------------------------------------------------------------------------------------------- Texas - 11.7% Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), Trust Certificates, Second Tier, Series B: 4,000 6% due 1/01/2023 4,281 1,400 5.75% due 1/01/2032 1,452 1,000 Bell County, Texas, Health Facilities Development Revenue Bonds (Lutheran General Health Care System), 6.50% due 7/01/2019 (c) 1,247 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A (d): 1,835 5.875% due 11/01/2017 2,064 2,145 5.875% due 11/01/2018 2,413 2,385 5.875% due 11/01/2019 2,683 MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (in Thousands) Face State Amount Municipal Bonds Value ----------------------------------------------------------------------------------------------------------------------------------- Texas (concluded) $ 5,235 Denton, Texas, Utility System Revenue Bonds, RIB, Series 369, 9.84% due 12/01/2017 (f)(i) $ 6,783 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Good Shepherd Medical Center Project) (j): 6,000 6.875% due 10/01/2020 7,011 2,600 6.375% due 10/01/2025 2,972 4,000 Harris County, Houston, Texas, Sports Authority Revenue Refunding Bonds, Senior Lien, Series G, 5.75% due 11/15/2020 (g) 4,539 100 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Texas Children's Hospital), VRDN, Series B-1, 1.84% due 10/01/2029 (g)(l) 100 2,700 Houston, Texas, Airport System Revenue Refunding Bonds, Sub-Lien, Series B, 5.50% due 7/01/2030 (f) 2,950 7,200 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5.75% due 8/15/2038 (a) 8,230 4,600 Travis County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (g)(h) 5,319 2,900 White Settlement, Texas, Independent School District, GO, 5.75% due 8/15/2034 3,322 ----------------------------------------------------------------------------------------------------------------------------------- Utah - 3.8% 15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals Inc.), 6.30% due 2/15/2015 (g) 17,892 ----------------------------------------------------------------------------------------------------------------------------------- Virginia - 2.1% 6,000 Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT, Series A, 6.05% due 2/01/2009 (a) 6,656 3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 3,403 ----------------------------------------------------------------------------------------------------------------------------------- Washington - 5.7% 10,000 Energy Northwest, Washington, Electric Revenue Bonds, DRIVERS, Series 242, 9.35% due 7/01/2017 (g)(i) 12,874 2,835 King County, Washington, Sewer Revenue Refunding Bonds, Series B, 5.50% due 1/01/2027 (f) 3,156 2,400 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25% due 12/01/2034 (a) 2,569 7,500 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011 (f) 8,483 ----------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 0.2% 1,000 Milwaukee County, Wisconsin, Airport Revenue Bonds, AMT, Series A, 5.75% due 12/01/2025 (d) 1,104 ----------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $611,244*) - 139.7% 663,950 Other Assets Less Liabilities - 2.4% 11,279 Preferred Stock, at Redemption Value - (42.1%) (200,017) --------- Net Assets Applicable to Common Stock - 100.0% $ 475,212 ========= MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (continued) (a) AMBAC Insured. (b) XL Capital Insured. (c) Escrowed to maturity. (d) FGIC Insured. (e) FHA Insured. (f) FSA Insured. (g) MBIA Insured. (h) Prerefunded. (i) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (j) Radian Insured. (k) CIFG Insured. (l) Security has a maturity of more than one year, but has variable rate and demand features, which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. * The cost and unrealized appreciation (depreciation) of investments as of January 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) -------------------------------------------------------------------------- Aggregate cost $ 611,244 ================== Gross unrealized appreciation $ 53,162 Gross unrealized depreciation (456) ------------------ Net unrealized appreciation $ 52,706 ================== ** Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) -------------------------------------------------------------------------- Dividend Affiliate Net Activity Income -------------------------------------------------------------------------- Merrill Lynch Institutional Tax-Exempt Fund (4,970) $ 26 -------------------------------------------------------------------------- MuniYield Quality Fund, Inc. Schedule of Investments as of January 31, 2005 (concluded) Forward interest rate swaps outstanding as of January 31, 2005 were as follows: (in Thousands) -------------------------------------------------------------------------- Unrealized Notional Amount Depreciation -------------------------------------------------------------------------- Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 3.621% Broker, JPMorgan Chase Bank Expires March 2015 $20,000 $ (184) Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 3.658% Broker, JPMorgan Chase Bank Expires April 2015 $22,000 (244) Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 4.251% Broker, JPMorgan Chase Bank Expires February 2025 $38,000 (1,739) Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate equal to 4.073% Broker, Morgan Stanley Capital Services, Inc. Expires March 2025 $14,000 (291) -------------------------------------------------------------------------- Total $ (2,458) ========== Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MuniYield Quality Fund, Inc. By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., President MuniYield Quality Fund, Inc. Date: March 21, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., President MuniYield Quality Fund, Inc. Date: March 21, 2005 By: /s/ Donald C. Burke ----------------------- Donald C. Burke, Chief Financial Officer MuniYield Quality Fund, Inc. Date: March 21, 2005