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: Robert C. Doll, Jr., Chief Executive
Officer, 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: 10/31/05
Date of reporting period: 05/01/05 - 07/31/05
Item 1 - Schedule of Investments
MuniYield Arizona Fund, Inc.
Schedule of Investments as of July 31, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
Arizona - 121.5% $ 1,650 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue
Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,659
Arizona Health Facilities Authority, Hospital System Revenue Bonds (John C.
Lincoln Health Network):
500 6.875% due 12/01/2020 563
1,125 7% due 12/01/2025 1,267
1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West),
Series A, 6.625% due 7/01/2020 2,009
3,000 Arizona School Facilities Board, State School Improvement Revenue Bonds, 5.50%
due 7/01/2017 3,317
4,335 Arizona State University Revenue Bonds, DRIVERS, Series 270, 8.356% due
7/01/2021 (e)(k) 5,381
Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds,
AMT:
3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,537
1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,068
Arizona Tourism and Sports Authority, Tax Revenue Bonds:
1,000 (Baseball Training Facilities Project), 5% due 7/01/2016 1,035
2,000 (Multi-Purpose Stadium Facility), Series A, 5.375% due 7/01/2023 (b) 2,205
500 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding
Bonds (American Graduate School International), 5.875% due 7/01/2015 (c) 518
Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation):
1,670 6.125% due 4/01/2007 (l) 1,784
735 6.125% due 4/01/2018 769
1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools
Project 1), Series A, 6.625% due 7/01/2020 985
2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan
Health Services), Series A, 7% due 12/01/2016 (b)(d) 3,004
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds:
1,000 (Metro Gardens - Mesa Ridge Apartments Project), Series 1999A, 5.15% due
7/01/2029 (b) 1,003
2,395 (Place Five and Greenery Apartments), Series A, 6.625% due 1/01/2027 (d) 2,597
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)
COP Certificates of Participation
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, 2005 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Arizona $ 15 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1B,
(concluded) 6.25% due 9/01/2032 (f)(i) $ 15
1,485 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public
Service Company of New Mexico Project), Series A, 6.30% due 12/01/2026 1,576
2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB,
Series 511X, 8.41% due 7/01/2014 (a)(k) 2,705
1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60%
due 7/01/2012 2,166
500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO,
Refunding, 7.50% due 7/01/2010 (e) 592
1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement,
GO (Saddle Mountain),Series A, 5% due 7/01/2014 1,045
Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A (b)(l):
1,100 5.625% due 1/01/2010 1,216
1,000 5.875% due 1/01/2010 1,116
1,000 Navajo County, Arizona, IDA, IDR (Stone Container Corporation Project), AMT, 7.40%
due 4/01/2026 1,033
1,000 Nogales Arizona Municipal Development Authority, Inc., Revenue Bonds, 5% due
6/01/2030 (a) 1,052
4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (e) 4,981
2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding
Bonds, Junior Lien, 5.50% due 7/01/2020 (e) 2,760
1,750 Phoenix, Arizona, GO, Refunding, DRIVERS, Series 173, 12.349% due 7/01/2008 (k) 2,171
15 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1A, 6.25% due
9/01/2032 (f)(i) 15
Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C:
750 6.70% due 7/01/2021 787
1,000 6.75% due 7/01/2031 1,037
1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools
Project II), Series A, 6.75% due 7/01/2021 1,052
1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A,
5.625% due 4/01/2014 (b) 1,058
530 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.20% due 11/01/2030 (f)(g) 563
3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding,
7.50% due 7/01/2009 (e) 3,517
Pinal County, Arizona, COP:
1,250 5% due 12/01/2026 1,288
1,250 5% due 12/01/2029 1,279
2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due
12/01/2031 2,414
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) 1,668
Tempe, Arizona, GO:
575 3.50% due 7/01/2022 518
2,000 3.50% due 7/01/2024 1,773
1,500 Tucson, Arizona, GO, Series D, 5% due 7/01/2021 1,605
1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care
Tucson Inc. Project), Series A, 6.125% due 7/01/2024 (j) 1,110
575 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds
(Mortgage-Backed Securities Program), AMT, Series A-1, 6% due 7/01/2021 (f)(g) 576
1,105 University Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,175
Vistancia Community Facilities District, Arizona, GO:
1,275 6.75% due 7/15/2022 1,374
750 5.75% due 7/15/2024 760
2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional
Medical Center), Series A, 6% due 8/01/2033 2,152
Puerto Rico - 500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 8.824% due
22.3% 7/01/2016 (b)(k) 608
Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation
Revenue Refunding Bonds:
1,000 Series D, 5.75% due 7/01/2041 1,115
1,000 Series J, 5.50% due 7/01/2023 1,097
4,000 Puerto Rico Commonwealth, Infrastructure Financing Authority, Special Tax and Capital
Appreciation Revenue Bonds, Series A, 4.67%** due 7/01/2035 (a) 994
2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,081
Puerto Rico Electric Power Authority, Power Revenue Bonds:
1,000 Series II, 5.25% due 7/01/2031 1,067
1,500 Series NN, 5.125% due 7/01/2029 1,586
695 Trust Receipts, Class R, Series 16 HH, 8.804% due 7/01/2013 (h)(k) 862
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 2,168
2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding
Bonds, Series I, 5.25% due 7/01/2033 2,140
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 1,077
Total Municipal Bonds (Cost - $89,925) - 143.8% 95,645
Shares
Held Short-Term Securities
602 CMA Arizona Municipal Money Fund (m) 602
Total Short-Term Securities (Cost - $602) - 0.9% 602
Total Investments (Cost - $90,527*) - 144.7% 96,247
Other Assets Less Liabilities - 0.9% 569
Preferred Stock, at Redemption Value - (45.6%) (30,308)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 66,508
===========
* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2005,
as computed for federal income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 90,535
===============
Gross unrealized appreciation $ 5,767
Gross unrealized depreciation (55)
---------------
Net unrealized appreciation $ 5,712
===============
** Represents a zero coupon bond; the interest rate shown is the effective yield at the
time of purchase by the Fund.
(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) The rate disclosed is that currently in effect. This rate changes periodically and
inversely based upon prevailing market rates.
(l) Prerefunded.
(m) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section (2)(a)(3) of the Investment Company Act of 1940, were as follows:
(in Thousands)
Dividend
Affiliate Net Activity Income
CMA Arizona Municipal Money Fund (312) $6
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer
MuniYield Arizona Fund, Inc.
Date: September 23, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer
MuniYield Arizona Fund, Inc.
Date: September 23, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer
MuniYield Arizona Fund, Inc.
Date: September 23, 2005