UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-7083 Name of Fund: MuniYield Arizona Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Terry K. Glenn, President, MuniYield Arizona Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 10/31/04 Date of reporting period: 05/01/04 - 07/31/04 Item 1 - Schedule of Investments MuniYield Arizona Fund, Inc. Schedule of Investments as of July 31, 2004 (in Thousands) S&P Moody's Face Ratings Ratings Amount Municipal Bonds Value Arizona - 122.6% NR* NR* $1,650 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,685 Arizona Health Facilities Authority, Hospital System Revenue Bonds (John C. Lincoln Health Network): BBB NR* 500 6.875% due 12/01/2020 542 BBB NR* 625 7% due 12/01/2025 669 BBB+ Baa1 1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A, 6.625% due 7/01/2020 1,947 AAA Aaa 3,000 Arizona School Facilities Board, State School Improvement Revenue Bonds, 5.50% due 7/01/2017 3,310 Arizona State University Revenue Bonds(e): AAA Aaa 1,500 5.75% due 7/01/2027 1,620 AAA NR* 4,335 DRIVERS, Series 270, 9.641% due 7/01/2021(l) 5,119 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT: NR* A2 3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,483 NR* Aaa 1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,052 Arizona Tourism and Sports Authority, Tax Revenue Bonds: NR* Baa1 1,000 (Baseball Training Facilities Project), 5% due 7/01/2016 1,014 NR* Aaa 2,000 (Multi-Purpose Stadium Facility), Series A, 5.375% due 7/01/2023(b) 2,127 AAA NR* 500 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding Bonds (American Graduate School International), 5.875% due 7/01/2015(c) 533 BBB Baa1 2,405 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation), 6.125% due 4/01/2018 2,499 AAA Aaa 2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan Health Services), Series A, 7% due 12/01/2016(b)(d) 2,987 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds: AAA Aaa 1,000 (Metro Gardens - Mesa Ridge Apartments Project), Series 1999A, 5.15% due 7/01/2029(b) 1,005 AAA NR* 2,395 (Place Five and Greenery Apartments), Series A, 6.625% due 1/01/2027(d) 2,723 Portfolio Abbreviations To simplify the listings of MuniYield Arizona Fund, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) DRIVERS Derivative Inverse Tax-Exempt Receipts GO General Obligation Bonds IDA Industrial Development Authority IDR Industrial Development Revenue Bonds M/F Multi-Family PCR Pollution Control Revenue Bonds RIB Residual Interest Bonds RITR Residual Interest Trust Receipts S/F Single-Family MuniYield Arizona Fund, Inc. Schedule of Investments as of July 31, 2004 (concluded) (in Thousands) S&P Moody's Face Ratings Ratings Amount Municipal Bonds Value Arizona (concluded) AAA NR* $ 955 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1B, 6.25% due 9/01/2032(f)(i) $ 973 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding, Series A: BB+ Ba1 1,000 (El Paso Electric Company Project), 6.25% due 5/01/2037 1,031 BBB Baa2 500 (Public Service Company of New Mexico Project), 5.75% due 11/01/2022 503 BBB Baa2 1,485 (Public Service Company of New Mexico Project), 6.30% due 12/01/2026 1,547 AAA NR* 2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB, Series 511X, 9.64% due 7/01/2014(a)(l) 2,725 AA Aa2 1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due 7/01/2012 2,196 AAA Aaa 500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO, Refunding, 7.50% due 7/01/2010(e) 610 NR* Baa2 1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement, GO (Saddle Mountain), Series A, 5% due 7/01/2014 1,030 Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A(b): AAA Aaa 1,000 5.875% due 1/01/2014 1,118 AAA Aaa 1,500 5.625% due 1/01/2015 1,648 AAA Aaa 1,000 Mesa, Arizona, Utility System Revenue Bonds, 6.125% due 7/01/2007(e)(k) 1,115 NR* NR* 1,000 Navajo County, Arizona, IDA, IDR (Stone Container Corporation Project), AMT, 7.40% due 4/01/2026 1,006 AAA Aaa 4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034(e) 4,774 AAA Aaa 2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds, Junior Lien, 5.50% due 7/01/2020(e) 2,719 AA+ NR* 1,750 Phoenix, Arizona, GO, Refunding, DRIVERS, Series 173, 13.62% due 7/01/2008(l) 2,352 NR* Aaa 2,500 Phoenix, Arizona, IDA, Revenue Bonds (Camelback Crossing), 6.35% due 9/20/2035(i) 2,674 AAA NR* 775 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1A, 6.25% due 9/01/2032(f)(i) 790 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project), Series C: NR* Baa3 750 6.70% due 7/01/2021 767 NR* Baa3 1,000 6.75% due 7/01/2031 1,014 AAA Aaa 1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625% due 4/01/2014(b) 1,090 AAA NR* 705 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.20% due 11/01/2030(f)(g) 743 AAA Aaa 3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50% due 7/01/2009(e) 3,651 AAA Aaa 1,000 Scottsdale, Arizona, GO, 6.25% due 7/01/2009(k) 1,149 BBB+ A3 2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2031 2,270 AAA Aaa 1,500 South Campus Group LLC, Arizona, Student Housing Revenue Bonds (Arizona State University South Campus Project), Series 2003, 5.625% due 9/01/2035(b) 1,598 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds (Mortgage-Backed Securities Program), AMT, Series A-1(g): AAA NR* 1,025 6% due 7/01/2021(f) 1,043 AAA NR* 420 6.20% due 1/01/2034 425 AA NR* 1,500 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc. Project), Series A, 6.125% due 7/01/2024(j) 1,643 NR* NR* 1,000 Vistancia, Arizona, Community Facilities District, GO, 6.75% due 7/15/2022 1,020 NR* Baa2 2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical Center), Series A, 6% due 8/01/2033 2,018 Puerto Rico - 18.5% AAA Aaa 500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 10.09% due 7/01/2016(b)(l) 629 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue Refunding Bonds: A Baa1 1,000 Series D, 5.75% due 7/01/2041 1,056 A Aaa 1,000 Series J, 5.50% due 7/01/2023 1,061 Puerto Rico Electric Power Authority, Power Revenue Bonds: A- A3 1,000 Series NN, 5.125% due 7/01/2024 1,014 A- A3 1,500 Series NN, 5.125% due 7/01/2029 1,502 AAA Aaa 695 Trust Receipts, Class R, Series 16 HH, 10.07% due 7/01/2013(h)(l) 893 NR* Aaa 750 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, RIB, 825 Series 449X, 9.69% due 7/01/2016(a)(l) NR* Baa3 2,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Cogeneration Facility-AES Puerto Rico Project), AMT, 6.625% due 6/01/2026 2,075 A- Baa1 2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series I, 5.25% due 7/01/2033 2,018 BBB+ Baa2 835 Puerto Rico Public Finance Corporation Revenue Bonds, Commonwealth Appropriation, Series E, 5.70% due 2/01/2010(k) 942 Virgin Islands - 1.8% BBB NR* 1,000 Virgin Islands Public Finance Authority, Revenue Refunding Bonds (Gross Receipts Taxes Loan Note), Series A, 6.375% due 10/01/2019 1,118 Total Municipal Bonds (Cost - $88,161) - 142.9% 92,690 Shares Held Short-Term Securities 1,712 CMA Arizona Municipal Money Fund(m) 1,712 Total Short-Term Securities (Cost - $1,712) - 2.6% 1,712 Total Investments (Cost - $89,873**) - 145.5% 94,402 Other Assets Less Liabilities - 1.2% 789 Preferred Stock, at Redemption Value - (46.7%) (30,301) ---------- Net Assets Applicable to Common Stock - 100.0% $ 64,890 ========== (a) AMBAC Insured. (b) MBIA Insured. (c) Connie Lee Insured. (d) Escrowed to maturity. (e) FGIC Insured. (f) FHLMC Collateralized. (g) FNMA/GNMA Collateralized. (h) FSA Insured. (i) GNMA Collateralized. (j) Radian Insured. (k) Prerefunded. (l) The interest rate is subject to change periodically and inversely based upon prevailing market rates. The interest rate shown is the rate in effect at July 31, 2004. (m) 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) Net Dividend Affiliate Activity Income CMA Arizona Municipal Money Fund 910 $ 6 * Not Rated. ** The cost and unrealized appreciation/depreciation of investments as of July 31, 2004, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 89,882 =========== Gross unrealized appreciation $ 4,760 Gross unrealized depreciation (240) ----------- Net unrealized appreciation $ 4,520 =========== 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 Arizona Fund, Inc. By: _/s/ Terry K. Glenn________ Terry K. Glenn, President of MuniYield Arizona Fund, Inc. Date: September 17, 2004 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/ Terry K. Glenn________ Terry K. Glenn, President of MuniYield Arizona Fund, Inc. Date: September 17, 2004 By: _/s/ Donald C. Burke________ Donald C. Burke, Chief Financial Officer of MuniYield Arizona Fund, Inc. Date: September 17, 2004