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: BlackRock 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., Chief Executive
Officer, BlackRock 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: 10/31/2007
Date of reporting period: 11/01/06 - 01/31/07
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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Alabama - 0.7% $ 3,000 Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 4.75%
due 1/01/2025 $ 3,042
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California - 18.7% 4,150 Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue
Refunding Bonds, Subordinate Lien, Series A, 5.45% due 10/01/2012 (a)(n) 3,371
1,250 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (f) 1,303
2,790 California State, GO, 5.50% due 4/01/2014 (h) 3,091
150 California State, GO, 5.50% due 4/01/2028 163
4,450 California State, GO, Refunding, 5.25% due 9/01/2010 (h) 4,689
2,300 California State, GO, Refunding, 5.125% due 6/01/2027 2,382
3,450 California State University, Systemwide Revenue Bonds, Series A, 5% due 11/01/2035 (d) 3,600
10,000 California State, Various Purpose, GO, 5.25% due 11/01/2029 10,623
3,200 California State, Various Purpose, GO, 5.50% due 11/01/2033 3,475
3,875 Chabot-Las Positas, California, Community College District, GO (Election of 2004),
Series B, 4.812% due 8/01/2025 (a)(n) 1,614
1,200 Chino Valley, California, Unified School District, GO (Election of 2002), Series C,
5.25% due 8/01/2030 (g) 1,296
2,150 East Side Union High School District, California, Santa Clara County, GO (Election of
2002), Series D, 5% due 8/01/2026 (b) 2,266
1,600 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (b)(h) 1,755
5,000 Hacienda-La Puente, California, Unified School District, GO (Election of 2000),
Series B, 5% due 8/01/2027 (f) 5,225
7,300 Los Angeles, California, Unified School District, GO, Series A, 5% due 7/01/2013 (g)(h) 7,824
4,000 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2029 (d) 4,189
2,275 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2036 (d) 2,380
2,000 Mount Diablo, California, Unified School District, GO (Election of 2002), 5%
due 7/01/2027 (d) 2,089
2,750 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (d) 2,863
2,000 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125% due 6/15/2033 (a) 2,091
Portfolio Abbreviations
To simplify the listings of BlackRock 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
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,100 Sacramento, California, Unified School District, GO (Election of 2002), 5%
due 7/01/2030 (g) $ 2,218
9,000 San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP,
Series A, 5% due 5/01/2032 (g) 9,392
2,725 San Mateo County, California, Community College District, GO (Election of 2001),
Series A, 5% due 9/01/2026 (d) 2,837
1,950 Tamalpais, California, Union High School District, GO (Election of 2001), 5%
due 8/01/2028 (f) 2,038
3,150 Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5% due 8/01/2030 (g) 3,326
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Colorado - 4.0% 1,650 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (c) 1,767
1,600 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2027 (j) 1,702
1,000 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2033 (j) 1,061
985 Colorado Housing and Finance Authority, Revenue Refunding Bonds (S/F Program), AMT,
Series B-2, 6.80% due 2/01/2031 (g) 1,019
9,000 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue Refunding Bonds,
Series B, 5.485% due 9/01/2029 (g)(n) 2,887
11,125 Northwest Parkway, Colorado, Public Highway Authority, Capital Appreciation Revenue
Bonds, Senior Convertible, Series C, 5.345% due 6/15/2011 (f)(n) 10,043
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District of 1,200 District of Columbia, COP, 5% due 1/01/2025 (d) 1,263
Columbia - 0.8% 2,500 District of Columbia, Revenue Refunding Bonds (Catholic University of America Project),
5.625% due 10/01/2029 (a) 2,623
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Florida - 2.8% 2,235 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue
Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (j) 2,414
2,065 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25% due 11/15/2036 2,181
2,700 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds (Adventist Health System), Series G, 5.125% due 11/15/2032 2,810
5,200 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125%
due 1/01/2032 (d) 5,452
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Georgia - 5.4% 3,500 Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General
Revenue Refunding Bonds, Series C, 5% due 1/01/2033 (f) 3,643
4,270 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2034 (f) 4,471
1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2033 (g) 1,244
1,675 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2039 (g) 1,737
5,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (f) 5,368
2,820 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (f) 3,022
4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power
Corporation-Scherer), Series A, 6.80% due 1/01/2011 5,264
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Hawaii - 0.5% 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (f) 2,142
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Illinois - 16.3% 5,000 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities), 5.125%
due 1/01/2009 (g)(h) 5,221
2,500 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities), 5.75%
due 1/01/2012 (g)(h)(n) 2,759
3,400 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 5.75% due 1/01/2023 (f) 3,713
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,000 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 5.75% due 1/01/2024 (f) $ 4,369
3,300 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT, Series
B-2, 6% due 1/01/2029 (b) 3,676
3 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, DRIVERS, AMT,
Series 250, 7.534% due 1/01/2021 (g)(i) 3
2,665 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, Third Lien,
AMT, Series A-2, 5.75% due 1/01/2021 (f) 2,909
5,080 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(h) 5,527
28,525 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5.212%
due 6/15/2010 (a)(m)(n) 26,314
5,500 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5%
due 6/15/2032 (a) 5,715
3,750 Illinois Student Assistance Commission, Student Loan Revenue Refunding Bonds, AMT,
Sub-Series CC, 6.875% due 3/01/2015 3,757
7,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), 5.50% due 12/15/2024 (d) 7,350
3,500 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75% due 6/15/2023 (g) 3,816
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Indiana - 5.2% 3,750 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5%
due 6/01/2028 (f) 3,915
7,500 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (d) 8,026
6,470 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds
(Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2028 (g) 6,881
5,055 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds
(Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2030 (g) 5,373
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Louisiana - 6.3% 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) 10,096
2,800 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue Bonds,
Series B, 5% due 6/01/2023 (a) 2,962
4,675 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital Appreciation
Bonds, Series B, 5.31% due 12/01/2027 (a)(n) 1,606
6,150 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5.25% due 7/15/2028 (a) 6,526
5,000 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5% due 7/15/2033 (a) 5,195
800 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project), AMT,
4.70% due 11/01/2036 (a) 798
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) 2,046
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Maryland - 1.3% 5,615 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A, 5.25%
due 9/01/2039 (b) 6,067
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Massachusetts - 6.8% 3,730 Massachusetts Bay, Massachusetts, Transportation Authority, General Transportation
System Revenue Refunding Bonds, Series A, 7% due 3/01/2011 (g) 4,167
3,550 Massachusetts Bay Transportation Authority, Revenue Refunding Bonds (General
Transportation System), Series A, 7% due 3/01/2014 (g) 4,151
4,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60%
due 1/01/2045 (f) 4,244
3 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS, AMT,
Series 501, 7.029% due 7/01/2009 (a)(i) 3
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$14,400 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (f) $ 15,188
2,400 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25%
due 1/01/2014 (d)(h) 2,602
1,210 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (g) 1,267
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Michigan - 3.5% 2,350 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B, 5%
due 7/01/2036 (d) 2,471
2,300 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding Bonds,
AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 2,399
1,700 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.50% due 6/01/2030 (b) 1,823
3,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series C, 5.65% due 9/01/2029 (b) 3,496
5,800 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series C, 5.45% due 12/15/2032 (b) 6,143
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Minnesota - 0.5% 2,100 Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), Series B, 5.15% due 12/01/2038 (o)(p) 2,182
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Nebraska - 2.0% 6,315 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series A, 5%
due 4/01/2033 (f) 6,587
2,300 Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc.
Project), AMT, 5.90% due 11/01/2027 2,505
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Nevada - 7.5% 4,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project), Series A,
5.50% due 9/01/2033 (j) 4,379
2,000 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2030 (d) 2,084
19,100 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2036 (d) 19,855
2,300 Clark County, Nevada, IDR (Southwest Gas Corp. Project), AMT, Series A, 4.75%
due 9/01/2036 (d) 2,296
5,710 Washoe County, Nevada, School District, GO, 5.875% due 12/01/2009 (f)(h) 6,036
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New Hampshire - 3.4% 10,000 New Hampshire Health and Education Facilities Authority Revenue Bonds
(Dartmouth-Hitchcock Obligation Group, 5.50% due 8/01/2027 (f) 10,693
5,000 New Hampshire State Business Finance Authority, PCR, Refunding (Public Service
Company), AMT, Series D, 6% due 5/01/2021 (g) 5,217
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New Jersey - 4.4% 910 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 978
1,385 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 1,458
5,500 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%
due 7/01/2031 (g) 5,876
3,860 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2028 4,081
7,500 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2030 7,913
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New York - 4.7% 8,990 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2032 (d) 9,437
8,000 New York State Thruway Authority, General Revenue Refunding Bonds, Series G, 5%
due 1/01/2032 (f) 8,438
3,570 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1,
5.25% due 6/01/2022 (a) 3,803
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Ohio - 2.2% 2,500 Columbus, Ohio, City School District, GO (School Facilities Construction and
Improvements), 5.25% due 12/01/2014 (f)(h) 2,735
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds (Consolidated Health System-Jackson
Hospital), 6.125% due 10/01/2009 (h)(j) $ 2,133
5,250 Ohio State Air Quality, Development Authority Revenue Bonds (Dayton Power and Light
Company Project), 4.80% due 9/01/2036 (d) 5,291
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Oklahoma - 0.5% 1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa International
Airport), AMT, Series B, 6% due 6/01/2019 (d) 1,057
1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa International
Airport), AMT, Series B, 6.125% due 6/01/2026 (d) 1,061
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Pennsylvania - 5.6% 11,750 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds (The
School District of Philadelphia Project), 5% due 6/01/2013 (f)(h) 12,550
6,000 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds (The
School District of Philadelphia Project), 5.25% due 6/01/2013 (f)(h) 6,492
6,250 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue Bonds,
Series B, 5.50% due 10/01/2021 (f) 6,694
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Rhode Island - 0.6% 2,500 Providence, Rhode Island, GO, Series A, 5.70% due 7/15/2007 (f)(h) 2,548
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South 3,750 Berkeley County, South Carolina, School District, Installment Lease Revenue Bonds
Carolina - 4.6% (Securing Assets for Education Project), 5.125% due 12/01/2030 3,953
3,200 Kershaw County, South Carolina, Public Schools Foundation, Installment Power Revenue
Refunding Bonds, 5% due 12/01/2029 (k) 3,357
4,500 Scago Educational Facilities Corporation for Pickens County School District, South
Carolina, Revenue Bonds, 5% due 12/01/2031 (f) 4,713
8,900 South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A, 5%
due 10/01/2033 (a) 9,252
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Tennessee - 4.0% 7,850 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment
Corporation), 5.875% due 10/01/2024 (a) 8,361
5,000 Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds, AMT,
Series D, 6.25% due 3/01/2018 (a) 5,345
2,075 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.10% due 7/01/2013 (a) 2,128
2,390 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.20% due 7/01/2015 (a) 2,434
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Texas - 12.0% 2,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), Trust
Certificates, Second Tier, Series B, 6% due 1/01/2011 (h) 2,159
1,000 Bell County, Texas, Health Facilities Development Revenue Bonds (Lutheran General
Health Care System), 6.50% due 7/01/2019 (c) 1,205
1,835 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2017 (d) 1,970
2,145 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2018 (d) 2,303
2,385 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2019 (d) 2,561
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,600 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds
(Good Shepherd Medical Center Project), 6.375% due 10/01/2010 (h)(j) $ 2,846
6,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds
(Good Shepherd Medical Center Project), 6.875% due 10/01/2010 (h)(j) 6,669
4,000 Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien,
Series G, 5.75% due 11/15/2020 (g) 4,288
9,250 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.46% due 8/15/2028 (d)(n) 3,081
13,350 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.58% due 8/15/2035 (n) 2,946
6,150 Lewisville, Texas, Independent School District, Capital Appreciation and School
Building, GO, Refunding, 4.67% due 8/15/2024 (d)(n) 2,692
7,150 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (g) 7,503
2,100 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional
Educators Program), AMT, Series A-1, 5.50% due 12/01/2039 (o)(p) 2,235
7,200 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First
Tier, Series A, 5.75% due 8/15/2038 (a) 7,798
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) 4,943
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Utah - 3.7% 15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals Inc.), 6.30%
due 2/15/2015 (g) 17,015
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Virginia - 0.7% 3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion
Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 3,374
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Washington - 2.6% 2,400 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%
due 12/01/2014 (a)(h) 2,626
5,100 Tacoma, Washington, Regional Water Supply System, Water Revenue Bonds, 5%
due 12/01/2032 (g) 5,285
4,125 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011 (f)(h) 4,311
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Puerto Rico - 1.9% 1,475 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II, 5.25%
due 7/01/2031 1,554
6,925 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%
due 7/01/2029 7,230
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Total Municipal Bonds (Cost - $586,829) - 133.2% 614,345
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Municipal Bonds Held in Trust (q)
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Arizona - 1.4% 6,000 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, 5.50%
due 7/01/2014 (a)(h) 6,398
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California - 7.1% 5,700 California State, GO, Refunding, 5.25% due 2/01/2033 (j) 6,080
10,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (b)(h) 10,968
14,160 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.625% due 6/01/2013 (h)(k) 15,587
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Georgia - 2.2% 10,000 Atlanta, Georgia, Airport Passenger Facility Charge, Subordinate Lien Revenue Refunding
Bonds, Series C, 5% due 1/01/2033 (f) 10,408
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Held in Trust (q) Value
-----------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.4% $10,000 Chicago, Illinois, Board of Education, GO (Chicago School Reform Project), 5.75%
due 12/01/2027 (a) $ 10,365
13,665 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.75% due 1/01/2021 (g) 14,609
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) 5,270
12,500 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.375% due 1/01/2032 (g) 13,084
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Massachusetts - 0.9% 3,825 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines
Inc. Project), AMT, Series A, 5.50% due 1/01/2019 (a) 4,034
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New Jersey - 3.1% 7,150 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 (e) 7,675
6,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 (e) 6,491
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New York - 3.2% 13,840 New York City, New York, GO, Series B, 5.875% due 8/01/2016 (g) 14,856
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Oregon - 3.5% 15,000 Portland, Oregon, Sewer System Revenue Bonds, Series A, 5.75% due 8/01/2010 (d)(h) 15,979
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Texas - 2.4% 10,470 Denton, Texas, Utility System Revenue Bonds, Series A, 6% due 12/01/2010 (f)(h) 11,295
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Washington - 4.7% 20,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Project Number 1),
Series A, 5.75% due 7/01/2017 (g) 21,755
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Total Municipal Bonds Held in Trust (Cost - $168,708) - 37.9% 174,854
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Shares
Held Short-Term Securities
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7,500 Merrill Lynch Institutional Tax-Exempt Fund, 3.46% (l)(m) 7,500
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Total Short-Term Securities (Cost - $7,500) - 1.6% 7,500
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Total Investments (Cost - $763,037*) - 172.7% 796,699
Other Assets Less Liabilities - 0.1% 418
Liability for Trust Certificates, Including Interest Expense Payable - (18.6%) (85,618)
Preferred Stock, at Redemption Value - (54.2%) (250,227)
----------
Net Assets Applicable to Common Stock - 100.0% $ 461,272
==========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 678,041
=========
Gross unrealized appreciation $ 33,532
Gross unrealized depreciation (210)
---------
Net unrealized appreciation $ 33,322
=========
(a) AMBAC Insured.
(b) XL Capital Insured.
(c) Escrowed to maturity.
(d) FGIC Insured.
(e) Assured Guaranty Insured.
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
(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) 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:
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Net Dividend
Affiliate Activity Income
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Merrill Lynch Institutional Tax-Exempt Fund 784 $ 41
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(m) Represents the current yield as of January 31, 2007.
(n) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(o) FNMA/GNMA Collateralized.
(p) FHLMC Collateralized.
(q) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction.
o Forward interest rate swaps outstanding as of January 31, 2007 were as
follows:
----------------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
----------------------------------------------------------------------------------------
Pay a fixed rate of 3.842% and receive a floating rate
based on 1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires May 2017 $ 55,000 $ (206)
----------------------------------------------------------------------------------------
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) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the registrant
was migrated to BlackRock's trading and compliance monitoring systems,
and various personnel changes occurred. In conjunction with these
business improvements, there were no changes in the registrants internal
control over financial reporting (as defined in Rule 30a-3(d) under Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year of
the period covered by this report that has materially affected, or is
reasonably likely to 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.
BlackRock MuniYield Quality Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniYield Quality Fund, Inc.
Date: March 26, 2007
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
BlackRock MuniYield Quality Fund, Inc.
Date: March 26, 2007
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
BlackRock MuniYield Quality Fund, Inc.
Date: March 26, 2007