mujfinal.htm - Generated by SEC Publisher for SEC Filing

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08621

Name of Fund: BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock
Series 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: 07/31/2011

Date of reporting period: 01/31/2011

Item 1 – Report to Stockholders



January 31, 2011

Semi-Annual Report (Unaudited)

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

BlackRock MuniYield Investment Quality Fund (MFT)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

BlackRock MuniYield New Jersey Quality Fund, Inc. (MJI)

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents

  Page 
Dear Shareholder  3 
Semi-Annual Report:   
Municipal Market Overview  4 
Fund Summaries  5 
The Benefits and Risks of Leveraging  11 
Derivative Financial Instruments  11 
Financial Statements:   
Schedules of Investments  12 
Statements of Assets and Liabilities  33 
Statements of Operations  34 
Statements of Changes in Net Assets  35 
Statements of Cash Flows  38 
Financial Highlights  39 
Notes to Financial Statements  45 
Officers and Directors  51 
Additional Information  52 

 

2 SEMI-ANNUAL REPORT JANUARY 31, 2011



Dear Shareholder

Economic data fluctuated widely throughout 2010, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural prob-

lems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. The sovereign debt crises

and emerging market inflation that troubled the global economy in 2010 remain a challenge to global growth, but overall levels of uncertainty are gradually

declining as the United States and the world economy are progressing from a stimulus-driven recovery into a consumption-driven expansion.

In the United States, the corporate sector has been an important area of strength and consumer spending has shown improvement, although weakness in

the housing and labor markets continues to burden the economy. It is important to note that we are in the midst of the first global economic recovery that

is being led by emerging economies, and the United States has only just begun its transition to a self-sustaining expansion, suggesting that economic

improvements still have a way to go.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Stocks continued their advance

through most of January until the political unrest in Egypt and widespread discord across the Middle East caused a sharp, but temporary decline at the end

of the period. US stocks outpaced most international markets over the 12-month period. Small cap stocks outperformed large caps as investors moved into

higher-risk assets.

Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that

drove yields sharply upward (pushing prices downward) through year end and into the New Year. However, on a 12-month basis, yields were lower overall

and fixed income markets performed well. Conversely, the tax-exempt municipal market was dealt an additional blow as it became evident that the Build

America Bond program would expire at the end of 2010. In addition, negative headlines regarding fiscal challenges faced by state and local governments

damaged investor confidence and sparked additional volatility in the municipal market. These conditions began to moderate as the period came to a close

and the market has shown signs of improvement in supply-and-demand technicals.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates

remained low. Yields on money market securities remain near all-time lows.

Total Returns as of January 31, 2011  6-month  12-month 
US large cap equities (S&P 500 Index)  17.93%  22.19% 
US small cap equities (Russell 2000 Index)  20.75  31.36 
International equities (MSCI Europe, Australasia, Far East Index)  16.10  15.38 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.06  0.13 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  (2.25)  5.25 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  0.20  5.06 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  (2.84)  1.10 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  8.65  15.96 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer

investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends

early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine,

where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder

Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the

months and years ahead.





Municipal Market Overview

As of January 31, 2011

The municipal market began the period with a strong tone as rates fell (and prices rose) along with those of US Treasuries. However, the cliché of the
“perfect storm” of negative events all conspired in the final months of 2010, leading to the worst quarterly performance for the municipal market since
the tightening cycle of 1994. Treasury yields lost their support as concerns about the US deficit raised questions over the willingness of foreign investors
to continue to purchase Treasury securities, at least at the previous historically low yields. Municipal valuations also suffered a quick and severe setback
as it became evident that the Build America Bond (“BAB”) program would expire at year-end. The program had opened the taxable market to municipal
issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.


The financial media has been replete with interviews, articles and presentations advertising the stress experienced in municipal finance, resulting in a
loss of confidence among retail investors who buy individual bonds or mutual funds. From the middle of November through year-end, funds specializing in
tax-exempt bonds witnessed weekly outflows averaging over $2.5 billion. Long-term and high-yield funds saw the greatest redemptions, followed by state-
specific funds to a lesser but still significant degree. Demand usually is strong at the beginning of the new year against a backdrop of low new-issue supply,
but the mutual fund outflows continued in January, putting additional upward pressure on municipal yields. Political uncertainty surrounding the midterm
elections and the approach taken by the new Congress on issues such as income tax rates and alternative minimum tax (and the previously mentioned
BAB
non-extension) exacerbated the situation. All these conditions, combined with the seasonal illiquidity surrounding year-end holidays and dealers
closing
their fiscal books, sapped willing market participation from the trading community.

As demand for municipal securities from traditional retail investors was declining and trading desk liquidity was being curtailed, there was no comparable
reduction in supply. As it became evident that the BAB program would be retired, issuers rushed deals to market both in the taxable municipal space and,
to a lesser degree, in the traditional tax-exempt space. This imbalance in the supply/demand technicals provided the classic market action, leading to wider
quality spreads and higher bond yields. The municipal curve steepened as the issuance was concentrated in longer (greater than 20-year) maturities. Curve
steepening that began in October accelerated in November, spurred on by Treasury weakness, heavy supply and record outflows. As measured by Thomson
Municipal Market Data, AAA-rated municipals rose nearly 82 basis points (“bps”) for maturities 25 years and longer from July 31, 2010, to January 31,
2011. The spread between two-year and 30-year maturities widened from 360 bps to 406 bps over the period.

The fundamental picture for municipalities will be subject to scrutiny for months to come, as the challenges to state and local budgets are real and need
to be addressed with significant cuts to expenses and tax revenue increases. The debates around austerity measures needed to succeed in balancing these
budgets are not over whether action needs to be taken, but over degree, approach and political will to accomplish these needs. The attention shone upon
municipal finance has the potential to improve this market for the future if these efforts result in greater means toward disclosure and accuracy (and timeli-
ness) of reporting. Early tests to judge progress will come soon as California, Illinois and Puerto Rico need to take austerity measures and access financing
in the municipal market to address relatively immediate fiscal imbalances. BlackRock favors a more constructive outlook for the municipal market heading
into 2011 as the typical, and this year particularly atypical, weakness passes.




Fund Summary as of January 31, 2011 BlackRock MuniHoldings California Quality Fund, Inc.

Fund Overview

Effective November 9, 2010, BlackRock MuniHoldings California Insured Fund, Inc. changed its name to BlackRock MuniHoldings California Quality
Fund, Inc.

BlackRock MuniHoldings California Quality Fund, Inc.’s (MUC) (the “Fund”)
investment objective is to provide shareholders with current income exempt
from federal and California income taxes. The Fund seeks to achieve its investment objective by investing primarily in municipal obligations exempt from fed-
eral income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market condi-
tions, the Fund invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of
investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of
Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds cat-
egory into the Lipper California Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (6.51)% based on market
price and (7.59)% based on net asset value (“NAV”). For the same period, the closed-end Lipper California Municipal Debt Funds category posted an aver-
age return of (9.24)% based on market price and (8.09)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category
posted an average return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount
to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV. The Fund maintained a low average cash reserve level, which benefited total return by boosting income
accrual. Increased exposure to tender option bonds to take advantage of the historically steep municipal yield curve also benefited the income accrual. As
a result, the Fund was able to increase dividend payments twice over the period. In addition, the Fund’s holdings in corporate-backed municipals aided per-
formance as non-traditional investors identified the sector’s attractive investment opportunities and subsequently drove up demand. Conversely, a generally
negative municipal market environment hindered Fund performance. Some widening of credit spreads, especially among California school districts and
healthcare credits, detracted from Fund performance, as did a relatively long duration posture given the rising interest rate environment of the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on New York Stock Exchange (“NYSE”)  MUC 
Initial Offering Date  February 27, 1998 
Yield on Closing Market Price as of January 31, 2011 ($12.71)1  7.13% 
Tax Equivalent Yield2  10.97% 
Current Monthly Distribution per Common Share3  $0.0755 
Current Annualized Distribution per Common Share3  $0.9060 
Leverage as of January 31, 20114  45% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The monthly distribution per share, declared on March 1, 2011, was increased to $0.0765. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and
Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.
4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the
Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see
The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

   1/31/11  7/31/10  Change  High  Low 
Market Price  $12.71  $14.04  (9.47)%  $14.69  $12.07 
Net Asset Value  $13.02  $14.55  (10.52)%  $15.10  $12.49 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
County/City/Special District/School District  42%  43% 
Utilities  29  26 
Transportation  11  10 
Education  9  10 
Corporate  5  5 
Health  2  2 
State  2  4 

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  7%  48% 
AA/Aa  71  32 
A  17  20 
BBB/Baa  5   
5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service 
(“Moody’s”) ratings.     

 

SEMI-ANNUAL REPORT JANUARY 31, 2011 5



Fund Summary as of January 31, 2011 BlackRock MuniHoldings New Jersey Quality Fund, Inc.

Fund Overview

Effective November 9, 2010, BlackRock MuniHoldings New Jersey Insured Fund, Inc. changed its name to BlackRock MuniHoldings New Jersey Quality
Fund, Inc.

BlackRock MuniHoldings New Jersey Quality Fund, Inc.’s (MUJ) (the “Fund”) investment objective is to provide shareholders with current income exempt
from federal income tax and New Jersey personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term,
investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax)
and New Jersey personal income taxes. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with remaining
maturities of one year or more at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of Fund
assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds category
into the Lipper New Jersey Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (9.91)% based on market price
and (6.19)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (9.78)%
based on market price and (6.43)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average
return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which widened
during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to per-
formance based on NAV. The Fund’s exposure to the housing, corporate and pre-refunded sectors contributed to performance as these sectors outperformed
the general municipal market. Additionally, the Fund’s exposure to shorter-duration bonds and premium coupon bonds (6% or higher) benefited performance
in the rising interest rate environment of the period. Conversely, the Fund’s modestly long duration stance detracted from performance, again due to the rising
rate environment. In addition, the Fund’s exposure to longer maturity bonds detracted as the long end of the yield curve steepened during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These

views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE  MUJ 
Initial Offering Date  March 11, 1998 
Yield on Closing Market Price as of January 31, 2011 ($13.15)1  6.75% 
Tax Equivalent Yield2  10.38% 
Current Monthly Distribution per Common Share3  $0.074 
Current Annualized Distribution per Common Share3  $0.888 
Leverage as of January 31, 20114  39% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  1/31/11  7/31/10  Change  High  Low 
Market Price  $13.15  $15.05  (12.62)%  $15.71  $12.65 
Net Asset Value  $13.82  $15.19  (9.02)%  $15.65  $13.43 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
State  32%  30% 
Transportation  18  18 
Education  13  12 
County/City/Special District/     
School District  13  17 
Health  10  9 
Housing  6  6 
Utilities  6  6 
Tobacco  1  1 
Corporate  1  1 

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  10%  38% 
AA/Aa  54  25 
A  22  28 
BBB/Baa  13  7 
Not Rated  1  26 

5 Using the higher of S&P’s and Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010, the market value of these securities
was $7,659,796 representing 2% of the Fund’s long-term investments.

6 SEMI-ANNUAL REPORT JANUARY 31, 2011



Fund Summary as of January 31, 2011 BlackRock MuniYield Investment Quality Fund

Fund Overview

Effective November 9, 2010, BlackRock MuniYield Insured Investment Fund changed its name to BlackRock MuniYield Investment Quality Fund.

BlackRock MuniYield Investment Quality Fund’s (MFT) (the “Fund”) investment objective is to provide shareholders with as high a level of current income
exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its invest-
ment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to
the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment
grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of
Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Insured Municipal Debt Funds (Leveraged)
category into the Lipper General Municipal Debt Funds (Leveraged) category. For the six months ended January 31, 2011, the Fund returned (12.86)%
based on market price and (7.97)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted
an average return of (8.46)% based on market price and (6.45)% based on NAV, while the closed-end Lipper Insured Municipal Debt Funds (Leveraged)
category posted an average return of (11.13)% based on market price and (6.92)% based on NAV. All returns reflect reinvestment of dividends. The Fund
moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based
on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to longer-duration and longer-maturity bonds detracted from
performance as the long end of the yield curve steepened during the period. Conversely, the Fund’s exposure to the housing sector contributed to perform-
ance as the sector was one of the municipal market’s better performers. Additionally, the Fund’s exposure to shorter-duration bonds and premium coupon
bonds (6% or higher) benefited performance in the rising interest rate environment of the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE  MFT 
Initial Offering Date  October 30, 1992 
Yield on Closing Market Price as of January 31, 2011 ($12.05)1  7.07% 
Tax Equivalent Yield2  10.88% 
Current Monthly Distribution per Common Share3  $0.071 
Current Annualized Distribution per Common Share3  $0.852 
Leverage as of January 31, 20114  41% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  1/31/11  7/31/10  Change  High  Low 
Market Price  $12.05  $14.28  (15.62)%  $14.47  $11.15 
Net Asset Value  $12.36  $13.87  (10.89)%  $14.38  $11.96 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
Utilities  28%  27% 
County/City/Special District/School District  24  26 
Transportation  18  16 
Health  14  14 
State  10  11 
Housing  3  4 
Education  2  2 
Tobacco  1   

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  7%  58% 
AA/Aa  79  22 
A  9  17 
B/B  4   
Not Rated  1  36 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010, the market value of these securities
was $4,251,053 representing 2% of the Fund’s long-term investments.

SEMI-ANNUAL REPORT JANUARY 31, 2011 7



Fund Summary as of January 31, 2011 BlackRock MuniYield Michigan Quality Fund, Inc.

Fund Overview

Effective November 9, 2010, BlackRock MuniYield Michigan Insured Fund, Inc. changed its name to BlackRock MuniYield Michigan Quality Fund, Inc.

BlackRock MuniYield Michigan Quality Fund, Inc.’s (MIY) (the “Fund”)
investment objective is to provide shareholders with as high a level of current income
exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to
achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and Michigan income taxes. Under normal market conditions, the Fund invests primarily in long-term
municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the
use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of
Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt Funds
category into the Lipper Michigan Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (8.36)% based on market
price and (5.31)% based on NAV. For the same period, the closed-end Lipper Michigan Municipal Debt Funds category posted an average return of (7.46)%
based on market price and (5.90)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average
return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which
widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion
relates to performance based on NAV. The Fund maintained a low average cash reserve level, which benefited total return by boosting income accrual.
Increased exposure to tender option bonds to take advantage of the historically steep municipal yield curve also benefited the income accrual. In addition,
the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment opportunities
and subsequently drove up demand. Conversely, a generally negative municipal market environment hindered Fund performance. Some widening of credit
spreads, especially among health care credits, also detracted from Fund performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE  MIY 
Initial Offering Date  October 30, 1992 
Yield on Closing Market Price as of January 31, 2011 ($12.91)1  7.11% 
Tax Equivalent Yield2  10.94% 
Current Monthly Distribution per Common Share3  $0.0765 
Current Annualized Distribution per Common Share3  $0.9180 
Leverage as of January 31, 20114  39% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  1/31/11  7/31/10  Change  High  Low 
Market Price  $12.91  $14.55  (11.27)%  $15.28  $12.12 
Net Asset Value  $13.68  $14.92  (8.31)%  $15.37  $13.32 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
County/City/Special District/School District  33%  33% 
Utilities  15  12 
Health  12  14 
Corporate  11  11 
Transportation  9  12 
State  9  9 
Education  7  6 
Housing  4  3 

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  3%  43% 
AA/Aa  67  26 
A  27  28 
BBB/Baa  2  1 
Not Rated6  1  2 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of January 31, 2011 and July 31, 2010, the market
value of these securities was $3,126,598 representing 1% and $2,921,098, repre-
senting 1%, respectively, of the Fund's long-term investments.

8 SEMI-ANNUAL REPORT JANUARY 31, 2011



Fund Summary as of January 31, 2011 BlackRock MuniYield New Jersey Quality Fund, Inc.

Fund Overview

Effective November 9, 2010, BlackRock MuniYield New Jersey Insured Fund, Inc. changed its name to BlackRock MuniYield New Jersey Quality Fund, Inc.

BlackRock MuniYield New Jersey Quality Fund, Inc.’s (MJI) (the “Fund”) investment objective is to provide shareholders with as high a level of current
income
exempt from federal income taxes and New Jersey personal income tax as is consistent with its investment policies and prudent investment
management. The
Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal
income taxes (except that
the interest may be subject to the federal alternative minimum tax) and New Jersey personal income taxes. Under normal
market conditions, the Fund invests
primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund
may invest directly in such securities or syn
thetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of
Fund
assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured Municipal Debt
Funds category
into the Lipper New Jersey Municipal Debt Funds category. For the six months ended January 31, 2011, the Fund returned (10.76)%
based on market price
and (6.15)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted
an average return of (9.78)%
based on market price and (6.43)% based on NAV, while the closed-end Lipper Single-State Insured Municipal Debt
Funds category posted an average
return of (9.05)% based on market price and (6.44)% based on NAV. All returns reflect reinvestment of dividends.
The Fund's discount to NAV, which widened
during the period, accounts for the difference between performance based on price and performance based
on NAV. The following discussion relates to per
formance based on NAV. The Fund’s exposure to the housing, corporate and pre-refunded sectors
contributed to performance as these sectors outperformed
the general municipal market. Additionally, the Fund’s exposure to shorter-duration bonds
and premium coupon bonds (6% or higher) benefited performance
in the rising interest rate environment of the period. Conversely, the Fund’s modestly
long duration stance detracted from performance, again due to the rising
rate environment. In addition, the Fund’s exposure to longer maturity bonds
detracted as the long end of the yield curve steepened during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE  MJI 
Initial Offering Date  October 30, 1992 
Yield on Closing Market Price as of January 31, 2011 ($12.92)1  6.69% 
Tax Equivalent Yield2  10.29% 
Current Monthly Distribution per Common Share3  $0.072 
Current Annualized Distribution per Common Share3  $0.864 
Leverage as of January 31, 20114  36% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  1/31/11  7/31/10  Change  High  Low 
Market Price  $12.92  $14.92  (13.40)%  $15.56  $12.20 
Net Asset Value  $13.66  $15.00  (8.93)%  $15.49  $13.27 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
State  28%  28% 
Education  19  16 
County/City/Special District/School District  12  17 
Transportation  10  9 
Health  10  10 
Utilities  9  9 
Housing  8  7 
Corporate  3  3 
Tobacco  1  1 

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  8%  31% 
AA/Aa  48  23 
A  31  36 
BBB/Baa  9  5 
Not Rated  4  56 

5 Using the higher of S&P’s and Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010, the market value of these securities
was $8,904,633, representing 5% of the Fund’s long-term investments.

SEMI-ANNUAL REPORT JANUARY 31, 2011 9



Fund Summary as of January 31, 2011 BlackRock MuniYield Pennsylvania Quality Fund

Fund Overview

Effective November 9, 2010, BlackRock MuniYield Pennsylvania Insured Fund changed its name to BlackRock MuniYield Pennsylvania Quality
Fund.
BlackRock MuniYield Pennsylvania Quality Fund’s (MPA) (the “Fund”) investment objective is to provide shareholders with as high a
level of current income
exempt from federal and Pennsylvania income taxes as is consistent with its investment policies and prudent investment
management. The Fund seeks to
achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from
federal income taxes (except that the interest may
be subject to the federal alternative minimum tax) and Pennsylvania income taxes. Under
normal market conditions, the Fund invests primarily in long-term
municipal obligations that are investment grade quality at the time of
investment. The Fund may invest directly in such securities or synthetically through the use
of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Performance

Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least
80% of
Fund assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Single-State Insured
Municipal Debt Funds cat
egory into the Lipper Pennsylvania Municipal Debt Funds category. For the six months ended January 31, 2011,
the Fund returned (10.43)% based on mar
ket price and (6.76)% based on NAV. For the same period, the closed-end Lipper Pennsylvania
Municipal Debt Funds category posted an average return of
(9.19)% based on market price and (6.17)% based on NAV, while the closed-end
Lipper Single-State Insured Municipal Debt Funds category posted an
average return of (9.05)% based on market price and (6.44)% based on
NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV,
which widened during the period, accounts for the difference
between performance based on price and performance based on NAV. A generally negative
municipal market environment hindered Fund
performance. Conversely, the Fund maintained a low average cash reserve level, which benefited total return
by boosting income accrual.
Increased exposure to tender option bonds to take advantage of the historically steep municipal yield curve also benefited the
income
accrual. In addition, the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors identified the
sector’s
attractive investment opportunities and subsequently drove up demand.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE  MPA 
Initial Offering Date  October 30, 1992 
Yield on Closing Market Price as of January 31, 2011 ($13.24)1  6.93% 
Tax Equivalent Yield2  10.66% 
Current Monthly Distribution per Common Share3  $0.0765 
Current Annualized Distribution per Common Share3  $0.9180 
Leverage as of January 31, 20114  40% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  1/31/11  7/31/10  Change  High  Low 
Market Price  $13.24  $15.26  (13.24)%  $15.71  $12.56 
Net Asset Value  $13.89  $15.38  (9.69)%  $15.86  $13.45 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

Sector Allocations     
  1/31/11  7/31/10 
County/City/Special District/School District  30%  29% 
State  23  23 
Utilities  12  12 
Transportation  12  12 
Health  10  12 
Education  6  5 
Housing  3  4 
Corporate  4  3 

 

Credit Quality Allocations5     
  1/31/11  7/31/10 
AAA/Aaa  8%  41% 
AA/Aa  73  42 
A  15  16 
BBB/Baa  4  1 
5 Using the higher of S&P’s or Moody’s ratings.     

 

10 SEMI-ANNUAL REPORT JANUARY 31, 2011



The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of
their common shares of beneficial interest (“Common Shares”). However,
these objectives cannot be achieved in all interest rate environments.

To leverage, the Funds issue preferred shares (“Preferred Shares”), which
pay dividends at prevailing short-term interest rates, and invest the pro-
ceeds in long-term municipal bonds. In general, the concept of leveraging
is based on the premise that the financing cost of assets to be obtained
from leverage, which will be based on short-term interest rates, will nor-
mally be lower than the income earned by each Fund on its longer-term
portfolio investments. To the extent that the total assets of each Fund
(including the assets obtained from leverage) are invested in higher-yield-
ing portfolio investments, each Fund’s holders of common shares
(“Common Shareholders”) will benefit from the incremental net income.

To illustrate these concepts, assume a Fund’s Common Shares capital-
ization is $100 million and it issues Preferred Shares for an additional
$50 million, creating a total value of $150 million available for investment
in long-term municipal bonds. If prevailing short-term interest rates are
3% and long-term interest rates are 6%, the yield curve has a strongly
positive slope. In this case, the Fund pays dividends on the $50 million of
Preferred Shares based on the lower short-term interest rates. At the same
time, the securities purchased by the Fund with assets received from the
Preferred Shares issuance earn income based on long-term interest rates.
In this case, the dividends paid to holders of preferred shares (“Preferred
Shareholders”) are significantly lower than the income earned on the
Fund’s long-term investments, and therefore the Common Shareholders
are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental net income pickup on
the Common Shares will be reduced or eliminated completely. Furthermore,
if prevailing short-term interest rates rise above long-term interest rates of
6%, the yield curve has a negative slope. In this case, the Fund pays divi-
dends on the higher short-term interest rates whereas the Fund’s total port-
folio earns income based on lower long-term interest rates.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other
factors can influence the value of portfolio investments. In contrast, the
redemption value of the Fund’s Preferred Shares does not fluctuate in
relation to interest rates. As a result, changes in interest rates can influence
the Fund’s NAV positively or negatively in addition to the impact on Fund
performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of TOBs, as
described in Note 1 of the Notes to Financial Statements. TOB investments
generally will provide the Funds with economic benefits in periods of
declining short-term interest rates, but expose the Funds to risks during
periods of rising short-term interest rates similar to those associated with
Preferred Shares issued by the Funds, as described above. Additionally,
fluctuations in the market value of municipal bonds deposited into the TOB
may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the
Funds and Common Shareholders, but as described above, it also creates
risks as short or long-term interest rates fluctuate. Leverage also will gener-
ally cause greater changes in the Funds’ NAVs, market prices and dividend
rates than comparable portfolios without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, the Funds’ net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, the Funds’ net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to Common Shareholders will be reduced. Each Fund
may be required to sell portfolio securities at inopportune times or at dis-
tressed values in order to comply with regulatory requirements applicable
to the use of leverage or as required by the terms of leverage instruments,
which may cause a Fund to incur losses. The use of leverage may limit each
Fund’s ability to invest in certain types of securities or use certain types
of hedging strategies, such as in the case of certain restrictions imposed
by ratings agencies that rate Preferred Shares issued by the Funds. Each
Fund will incur expenses in connection with the use of leverage, all of
which are borne by Common Shareholders and may reduce income to
the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to
issue Preferred Shares in an amount of up to 50% of their total managed
assets at the time of issuance. Under normal circumstances, each Fund
anticipates that the total economic leverage from Preferred Shares and/or
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of January 31, 2011, the Funds had economic
leverage from Preferred Shares and/or TOBs as a percentage of their total
managed assets as follows:

  Percent of 
  Leverage 
MUC  45% 
MUJ  39% 
MFT  41% 
MIY  39% 
MJI  36% 
MPA  40% 

 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including finan-
cial futures contracts, as specified in Note 2 of the Notes to Financial
Statements, which may constitute forms of economic leverage. Such instru-
ments are used to obtain exposure to a market without owning or taking
physical custody of securities or to hedge market and/or interest rate risks.
Such derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction or illiquidity of the
derivative instrument. Each Fund’s ability to successfully use a derivative
instrument depends on the investment advisor’s ability to accurately predict
pertinent market movements, which cannot be assured. The use of deriva-
tive instruments may result in losses greater than if they had not been
used, may require a Fund to sell or purchase portfolio securities at inoppor-
tune times or for distressed values, may limit the amount of appreciation a
Fund can realize on an investment, may result in lower dividends paid to
shareholders or may cause a Fund to hold an investment that it might oth-
erwise sell. The Funds’ investments in these instruments are discussed in
detail in the Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 11



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
California — 117.4%       
Corporate — 0.5%       
City of Chula Vista California, Refunding RB, San Diego     
Gas & Electric, Series A, 5.88%, 2/15/34  $ 2,435  $ 2,495,169 
County/City/Special District/School District — 47.8%     
Alameda County Joint Powers Authority, Refunding RB,     
Lease (AGM), 5.00%, 12/01/34    13,180  12,210,743 
Bonita Unified School District California, GO, Election       
of 2004, Series B:       
(BHAC), 5.00%, 8/01/31    5,000  4,694,900 
(NPFGC), 5.00%, 8/01/29    8,350  8,162,793 
Cabrillo Community College District, GO, Election of 2004,     
Series B (NPFGC), 5.00%, 8/01/36    4,000  3,817,120 
Central Unified School District, GO, Election of 2008,       
Series A (AGC), 5.63%, 8/01/33    2,600  2,684,162 
City of Garden Grove California, COP, Series A, Financing     
Project (AMBAC), 5.50%, 3/01/26    4,040  4,098,620 
City of Lodi California, COP, Refunding, Series A (AGM),     
5.00%, 10/01/32    2,080  1,919,424 
City of Redding California, COP, Refunding, Series A       
(AGM), 5.00%, 6/01/30    5,735  5,395,832 
Colton Joint Unified School District, GO, Series A (NPFGC),     
5.38%, 8/01/26    2,500  2,531,800 
Corona Department of Water & Power, COP (NPFGC),       
5.00%, 9/01/29    5,910  5,314,154 
County of Kern California, COP, Capital Improvements       
Projects, Series A (AGC), 6.00%, 8/01/35    3,500  3,676,680 
Covina-Valley Unified School District California, GO,       
Refunding, Series A (AGM), 5.50%, 8/01/26    2,395  2,459,497 
Culver City Redevelopment Finance Authority California,     
Tax Allocation Bonds, Refunding, Series A (AGM),       
5.60%, 11/01/25    3,750  3,796,050 
Fullerton Joint Union High School District California, GO,     
Election of 2002, Series B (NPFGC), 5.00%, 8/01/29  6,685  6,621,359 
Jurupa Public Financing Authority, RB, Superior Lien,       
Series A (AGM):       
5.00%, 9/01/30    4,000  3,610,800 
5.00%, 9/01/33    2,000  1,779,160 
5.00%, 9/01/39    4,230  3,706,960 
Los Angeles Community College District California, GO,     
Election of 2008, Series C, 5.25%, 8/01/39    1,500  1,419,555 
Los Angeles Community Redevelopment Agency       
California, RB, Bunker Hill Project, Series A (AGM),       
5.00%, 12/01/27    10,000  10,016,600 
Los Angeles County Metropolitan Transportation Authority,     
Refunding RB, Proposition A, First Tier, Senior Series A     
(AMBAC), 5.00%, 7/01/35    9,000  8,899,560 
Los Gatos Union School District California, GO, Election     
of 2001, Series B (AGM), 5.00%, 8/01/30    2,735  2,757,345 
Los Rios Community College District, GO, Election       
of 2008, Series A, 5.00%, 8/01/35    11,000  10,181,160 

 

    Par   
Municipal Bonds    (000)  Value 
California (continued)       
County/City/Special District/School District (continued)     
Marin Community College District, GO, Election of 2004,     
Series A (NPFGC), 5.00%, 8/01/28  $ 5,860  $ 5,806,088 
Marysville Joint Unified School District California, GO,       
Election of 2008 (AGC), 5.13%, 8/01/34    6,915  6,445,956 
Modesto Irrigation District, COP, Series B, 5.50%, 7/01/35  2,000  1,902,040 
Orange County Sanitation District, COP, Series A,       
5.00%, 2/01/35    2,500  2,465,625 
Oxnard Union High School District, GO, Refunding,       
Election of 2004, Series A (AGM), 5.00%, 8/01/35  11,110  10,103,545 
Port of Oakland, Refunding RB, Series M, AMT (NPFGC),     
5.38%, 11/01/27    24,465  22,787,435 
Redlands Unified School District California, GO, Election     
of 2008 (AGM), 5.25%, 7/01/33    5,000  4,784,000 
Redwoods Community College District, GO, Election       
of 2004 (NPFGC), 5.00%, 8/01/31    4,630  4,446,420 
Riverside Unified School District California, GO, Election     
of 2001, Series B (NPFGC), 5.00%, 8/01/30    10,735  10,134,591 
Saddleback Valley Unified School District California,       
GO (AGM), 5.00%, 8/01/29    4,115  4,046,732 
Salinas Union High School District California, GO, Election     
of 2002, Series B (NPFGC), 5.00%, 6/01/26    3,490  3,449,272 
San Bernardino Community College District, GO, Election     
of 2002, Series A, 6.25%, 8/01/33    205  216,146 
San Diego Community College District California, GO,       
Election of 2002 (AGM), 5.00%, 5/01/30    7,000  6,747,930 
San Diego Regional Building Authority, RB, County       
Operations Center & Annex, Series A, 5.50%, 2/01/29  675  682,398 
San Francisco Community College District California, GO,     
Election of 2001, Series C (AGM), 5.00%, 6/15/31  4,195  4,013,902 
San Jose Evergreen Community College District California,     
GO, Refunding, CAB, Election of 2004, Series A       
(NPFGC), 5.92%, 9/01/24 (a)    10,410  4,712,919 
San Mateo County Transportation District California,       
Refunding RB, Series A (NPFGC), 5.00%, 6/01/29    5,650  5,693,392 
Santa Clara Redevelopment Agency California, Tax       
Allocation Bonds, Bayshore North Project, Series A       
(AMBAC), 5.50%, 6/01/23    10,000  9,975,300 
Santa Rosa High School District California, GO, Election     
of 2002 (NPFGC), 5.00%, 8/01/28    2,855  2,720,530 
Snowline Joint Unified School District, COP, Refunding,     
Refining Project (AGC), 5.75%, 9/01/38    5,635  5,890,773 
Walnut Valley Unified School District California, GO,       
Election of 2007, Measure S, Series A (AGM),       
5.00%, 2/01/33    2,000  1,851,680 
Walnut Valley Unified School District, GO, Election       
of 2007, Measure S, Series A (AGM), 5.00%, 8/01/30  1,000  937,240 
West Contra Costa Unified School District California,       
GO (AGM):       
Election of 2002, Series B, 5.00%, 8/01/32    6,690  6,401,193 
Election of 2005, Series A, 5.00%, 8/01/26    2,595  2,602,240 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the  BHAC  Berkshire Hathaway Assurance Corp.  GO  General Obligation Bonds 
Schedules of Investments, the names and descriptions of  CAB  Capital Appreciation Bonds  HDA  Housing Development Authority 
many of the securities have been abbreviated according  CIFG  CDC IXIS Financial Guaranty  HFA  Housing Finance Agency 
to the following list:  COP  Certificates of Participation  HRB  Housing Revenue Bonds 
    EDA  Economic Development Authority  IDA  Industrial Development Authority 
ACA  ACA Financial Guaranty Corp.  EDC  Economic Development Corp.  ISD  Independent School District 
AGC  Assured Guaranty Corp.  ERB  Education Revenue Bonds  LRB  Lease Revenue Bonds 
AGM  Assured Guaranty Municipal Corp.  FGIC  Financial Guaranty Insurance Co.  NPFGC  National Public Finance Guarantee Corp. 
AMBAC  American Municipal Bond Assurance Corp.  FHA  Federal Housing Administration  RB  Revenue Bonds 
AMT  Alternative Minimum Tax (subject to)  GAN  Grant Anticipation Notes  S/F  Single-Family 
    GARB  General Airport Revenue Bonds     
See Notes to Financial Statements.         

 

12 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (continued) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
California (continued)       
County/City/Special District/School District (concluded)     
West Contra Costa Unified School District, GO, Election     
of 2005, Series A (AGM), 5.00%, 8/01/35  $ 12,000  $ 11,182,560 
Westminster Redevelopment Agency California, Tax       
Allocation Bonds, Subordinate, Commercial       
Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39  4,300  4,603,451 
      254,357,632 
Education — 8.5%       
California Educational Facilities Authority, RB, University     
of Southern California, Series A, 5.00%, 10/01/39    1,000  973,200 
California State Public Works Board, RB, University       
of California, Institute Project, Series C (AMBAC),       
5.00%, 4/01/30    5,025  4,712,294 
California State University, Refunding RB, Systemwide,     
Series C (NPFGC), 5.00%, 11/01/35    10,000  9,015,400 
Riverside Community College District, GO, Election       
of 2004, Series C (AGM), 5.00%, 8/01/32    8,750  8,244,338 
San Diego Community College District, GO, Election       
of 2006 (AGM), 5.00%, 8/01/30    6,360  6,243,485 
University of California, RB, Limited Project, Series D       
(AGM), 5.00%, 5/15/37    5,950  5,722,353 
University of California, Refunding RB, General, Series A     
(AMBAC), 5.00%, 5/15/27    10,500  10,406,865 
      45,317,935 
Health — 4.6%       
ABAG Finance Authority for Nonprofit Corps, Refunding RB,     
Sharp Healthcare:       
6.25%, 8/01/39    5,000  4,960,550 
Series A, 6.00%, 8/01/30 (b)    2,250  2,157,795 
California Health Facilities Financing Authority, RB,       
Providence Health Services, Series B, 5.50%, 10/01/39  190  182,320 
California Health Facilities Financing Authority,       
Refunding RB:       
Catholic Healthcare West, Series A, 6.00%, 7/01/34  3,700  3,702,183 
Sutter Health, Series B, 6.00%, 8/15/42 (b)    2,800  2,749,376 
California Statewide Communities Development Authority,     
RB, Health Facility, Memorial Health Services, Series A,     
6.00%, 10/01/23    4,915  5,062,155 
City of Newport Beach California, RB, Hoag Memorial       
Hospital Presbyterian, 6.00%, 12/01/40 (b)    1,070  1,065,474 
City of Torrance California, RB, Torrance Memorial Medical     
Center, Series A, 5.00%, 9/01/40    5,350  4,478,004 
      24,357,857 
State — 3.3%       
California Community College Financing Authority, RB,       
Grossmont-Palomar-Shasta, Series A (NPFGC),       
5.63%, 4/01/26    2,180  2,179,934 
California State Public Works Board, RB, Department       
of Education, Riverside Campus Project, Series B,       
6.50%, 4/01/34    3,670  3,767,659 
California State University, Refunding RB, Systemwide,     
Series C (NPFGC), 5.00%, 11/01/28    12,000  11,481,720 
      17,429,313 
Transportation — 19.0%       
City of Fresno California, RB, Series B, AMT (AGM),       
5.50%, 7/01/20    4,455  4,559,069 
City of San Jose California, RB, Series D (NPFGC),       
5.00%, 3/01/28    7,500  7,289,850 
County of Orange California, RB, Series B,       
5.75%, 7/01/34    6,345  6,564,474 

 

  Par   
Municipal Bonds  (000)  Value 
California (continued)     
Transportation (concluded)     
County of Sacramento California, RB, Senior Series B:     
5.75%, 7/01/39  $ 2,650  $ 2,635,160 
AMT (AGM), 5.75%, 7/01/28  13,170  13,311,709 
AMT (AGM), 5.25%, 7/01/33  19,525  18,071,168 
Los Angeles Harbor Department, RB, Series B,     
5.25%, 8/01/34  5,530  5,377,261 
Port of Oakland, RB, Series K, AMT (NPFGC),     
5.75%, 11/01/29  19,660  18,685,061 
San Francisco City & County Airports Commission, RB,     
Series E, 6.00%, 5/01/39  9,650  9,933,324 
San Francisco City & County Airports Commission,     
Refunding RB, Second Series 34E, AMT (AGM),     
5.75%, 5/01/24  5,000  5,186,200 
San Mateo County Transportation Authority,     
Refunding RB, Series A (NPFGC), 5.00%, 6/01/32  10,000  9,705,700 
    101,318,976 
Utilities — 33.7%     
California State Department of Water Resources,     
Refunding RB, Water System, Series AG,     
5.00%, 12/01/28  4,450  4,490,851 
City of Escondido California, COP, Refunding, Series A     
(NPFGC), 5.75%, 9/01/24  465  471,059 
City of Glendale California, RB (AGC), 5.00%, 2/01/31  5,030  4,881,514 
City of Los Angeles California, Refunding RB,     
Sub-Series A, 5.00%, 6/01/32  3,000  2,926,770 
City of Santa Clara California, RB, Sub-Series A (NPFGC),     
5.00%, 7/01/28  6,050  6,028,825 
Dublin-San Ramon Services District, Refunding RB,     
6.00%, 8/01/41  4,000  4,046,160 
East Bay Municipal Utility District, Refunding RB,     
Sub-Series A (AMBAC), 5.00%, 6/01/33  6,545  6,544,542 
East Valley Water District Financing Authority,     
Refunding RB, 5.00%, 10/01/40  4,070  3,773,663 
Eastern Municipal Water District, COP, Series H,     
5.00%, 7/01/33  2,500  2,352,225 
Los Angeles County Sanitation Districts Financing     
Authority, Refunding RB, Capital Project 14 (BHAC),     
5.00%, 10/01/34  7,915  7,637,658 
Los Angeles Department of Water & Power, RB     
(AMBAC), System:     
Sub-Series A-1, 5.00%, 7/01/36  4,610  4,411,678 
Sub-Series A-2, 5.00%, 7/01/35  1,150  1,103,000 
Metropolitan Water District of Southern California, RB,     
Series B-1 (NPFGC), 5.00%, 10/01/33  9,000  8,879,220 
Oxnard Financing Authority, RB (NPFGC):     
Project, 5.00%, 6/01/31  10,000  9,196,700 
Redwood Trunk Sewer & Headworks, Series A,     
5.25%, 6/01/34  13,000  12,574,640 
Sacramento City Financing Authority California,     
Refunding RB (NPFGC), 5.00%, 12/01/29  8,775  8,013,857 
Sacramento Municipal Utility District, RB (NPFGC):     
Cosumnes Project, 5.13%, 7/01/29  36,760  36,177,354 
Series R, 5.00%, 8/15/33  22,150  21,337,759 
San Francisco City & County Public Utilities     
Commission, RB:     
Series A (NPFGC), 5.00%, 11/01/32  15,000  14,629,800 
Series B, 5.00%, 11/01/30  14,000  13,723,500 
Turlock Public Financing Authority California, RB,     
Series A (NPFGC), 5.00%, 9/15/33  6,655  6,334,362 
    179,535,137 
Total Municipal Bonds — 117.4%    624,812,019 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 13



Schedule of Investments (continued) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (c)    (000)  Value 
California — 61.3%       
Corporate — 7.5%       
San Francisco Bay Area Rapid Transit District,       
Refunding RB, Series A (NPFGC), 5.00%, 7/01/30  $ 23,100  $ 23,099,076 
University of California, RB, Limited Project, Series B       
(AGM), 5.00%, 5/15/33    17,397  16,739,348 
      39,838,424 
County/City/Special District/School District — 27.1%     
Contra Costa Community College District California, GO,     
Election of 2002 (NPFGC), 5.00%, 8/01/28    7,800  7,639,710 
Desert Community College District California, GO,       
Series C (AGM), 5.00%, 8/01/37    16,530  15,190,078 
Los Angeles Community College District California, GO:     
Election of 2001, Series A (NPFGC), 5.00%, 8/01/32  6,647  6,247,263 
Election of 2003, Series E (AGM), 5.00%, 8/01/31  11,216  10,610,548 
Election of 2008, Series A, 6.00%, 8/01/33    9,596  10,151,438 
Ohlone Community College District, GO, Ohlone, Series B     
(AGM), 5.00%, 8/01/30    16,518  15,727,503 
Peralta Community College District, GO, Election of 2000,     
Series D (AGM), 5.00%, 8/01/35    15,490  14,754,535 
Poway Unified School District, GO, Election of 2002,       
Improvement District 02, Series 1-B (AGM),       
5.00%, 8/01/30    10,000  9,372,400 
San Bernardino Community College District California,     
GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31  17,770  16,582,253 
San Diego Community College District California, GO,       
Election of 2002 (AGM), 5.00%, 5/01/30    12,549  12,097,376 
San Francisco Bay Area Transit Financing Authority,       
Refunding RB, Series A (NPFGC), 5.00%, 7/01/34    2,499  2,458,546 
San Jose Financing Authority, Refunding RB, Civic Center     
Project, Series B (AMBAC), 5.00%, 6/01/32    14,800  13,529,272 
Vista Unified School District California, GO, Series A       
(AGM), 5.25%, 8/01/25    10,016  10,119,983 
      144,480,905 
Education — 8.2%       
Chaffey Community College District, GO, Election of 2002,     
Series B (NPFGC), 5.00%, 6/01/30    9,905  9,409,150 
Peralta Community College District, GO, Peralta       
Community College (AGM), 5.00%, 8/01/32    6,980  6,484,909 
Riverside Community College District, GO, Election       
of 2004, Series C (NPFGC), 5.00%, 8/01/32    8,910  8,395,091 
University of California, RB:       
Limited Project, Series D (AGM), 5.00%, 5/15/41  8,000  7,616,240 
Series O, 5.75%, 5/15/34    11,190  11,877,625 
      43,783,015 
Utilities — 18.5%       
City of Napa California, RB (AMBAC), 5.00%, 5/01/35  9,100  8,669,388 
East Bay Municipal Utility District, RB, Sub-Series A       
(NPFGC), 5.00%, 6/01/35    12,070  11,754,249 
East Bay Municipal Utility District, Refunding RB,       
Sub-Series A (AMBAC), 5.00%, 6/01/37    14,510  14,403,932 
Los Angeles Department of Water & Power, RB (AGM):     
Power System, Sub-Series A-1, 5.00%, 7/01/31    4,993  4,830,914 
System, Sub-Series A-2, 5.00%, 7/01/35    7,500  7,193,475 
Metropolitan Water District of Southern California, RB,     
Series A (AGM), 5.00%, 7/01/35    12,870  12,690,850 
Rancho Water District Financing Authority, Refunding RB,     
Series A (AGM), 5.00%, 8/01/34    5,008  4,768,819 
Sacramento Regional County Sanitation District, RB,       
Sacramento Regional County Sanitation (NPFGC),       
5.00%, 12/01/36    4,500  4,329,270 

 

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (c)  (000)  Value 
California (concluded)     
Utilities (concluded)     
San Diego County Water Authority, COP, Refunding:     
Series 2002-A (NPFGC), 5.00%, 5/01/32  $ 10,000  $ 9,644,100 
Series 2008-A (AGM), 5.00%, 5/01/33  16,740  16,171,843 
San Diego County Water Authority, COP, Series A (AGM),   
5.00%, 5/01/31  4,000  3,871,040 
    98,327,880 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 61.3%    326,430,224 
Total Long-Term Investments     
(Cost — $999,648,794) — 178.7%    951,242,243 
Short-Term Securities  Shares   
BIF California Municipal Money Fund,     
0.04% (d)(e)  11,973,467  11,973,467 
Total Short-Term Securities     
(Cost — $11,973,467) — 2.3%    11,973,467 
Total Investments (Cost — $1,011,622,261*) — 181.0%  963,215,710 
Other Assets Less Liabilities — 0.9%    5,029,260 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (34.2)%    (182,020,904) 
Preferred Shares, at Redemption Value — (47.7)%    (254,012,979) 
Net Assets Applicable to Common Shares — 100.0%    $ 532,211,087 


* The cost and unrealized appreciation (depreciation) of investments as of January 31,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 829,480,275 
Gross unrealized appreciation  $     2,522,008 
Gross unrealized depreciation  (50,641,206) 
Net unrealized depreciation  $ (48,119,198) 


(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of

report date.
(b) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
    Appreciation 
Counterparty  Value  (Depreciation) 
Citigroup Global Inc.  $3,223,269  $(39,525) 
Morgan Stanley Co. Inc.  $2,749,376  $ 26,572 


(c) 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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(d) 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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
BIF California         
Municipal         
Money Fund  71,270,966  (59,297,499)  11,973,467  $ 2,476 


(e) Represents the current yield as of report date.

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (concluded) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

For Fund compliance purposes, the Fund’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or rating group indexes, and/or as defined by Fund management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments1    $ 951,242,243    $ 951,242,243 
Short-Term         
Securities  $ 11,973,467      11,973,467 
Total  $ 11,973,467  $ 951,242,243    $ 963,215,710 

1 See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 15



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey — 138.3%       
Corporate — 1.7%       
New Jersey EDA, RB, Disposal, Waste M Management       
of New Jersey, Series A, Mandatory Put Bonds, AMT,     
5.30%, 6/01/15 (a)  $ 2,500  $ 2,590,550 
New Jersey EDA, Refunding RB, New Jersey       
American Water Co., Inc. Project, Series A, AMT,       
5.70%, 10/01/39    2,500  2,399,700 
      4,990,250 
County/City/Special District/School District — 17.3%     
Borough of Hopatcong New Jersey, GO, Refunding,       
Sewer (AMBAC), 4.50%, 8/01/33    2,690  2,502,668 
City of Perth Amboy New Jersey, GO, CAB (AGM) (b):       
5.44%, 7/01/32    4,605  4,079,616 
5.51%, 7/01/33    1,395  1,222,173 
5.59%, 7/01/37    1,470  1,267,449 
County of Middlesex New Jersey, COP (NPFGC):       
5.25%, 6/15/23    1,550  1,553,627 
Refunding, 5.50%, 8/01/16    1,375  1,405,484 
East Orange Board of Education, COP (AGM),       
5.50%, 8/01/12    4,135  4,261,986 
Edgewater Borough Board of Education, GO (AGM):       
4.25%, 3/01/34    1,235  1,189,194 
4.25%, 3/01/35    1,300  1,241,422 
4.30%, 3/01/36    1,370  1,305,624 
4.30%, 3/01/37    1,440  1,375,142 
4.30%, 3/01/38    1,515  1,440,916 
Essex County Improvement Authority, LRB, County       
Correctional Facility Project, Series A (FGIC),       
5.00%, 10/01/13 (c)    4,400  4,869,304 
Essex County Improvement Authority, Refunding RB,       
Project Consolidation (NPFGC):       
5.50%, 10/01/27    250  259,975 
5.50%, 10/01/28    4,840  4,983,458 
Hudson County Improvement Authority, RB,       
Harrison Parking Facility Project, Series C (AGC),       
5.38%, 1/01/44    3,600  3,619,404 
Middlesex County Improvement Authority, RB,       
Senior Citizens Housing Project, AMT (AMBAC),       
5.50%, 9/01/30    500  473,045 
Monmouth County Improvement Authority, Refunding RB,     
Governmental Loan (AMBAC):       
5.35%, 12/01/17    110  110,316 
5.38%, 12/01/18    115  115,332 
Morristown Parking Authority, RB (NPFGC):       
5.00%, 8/01/30    1,830  1,835,032 
5.00%, 8/01/33    3,000  2,960,130 
New Jersey State Transit Corp., COP, Subordinate,       
Federal Transit Administration Grants, Series A (AGM),     
5.00%, 9/15/21    2,000  2,022,400 
Newark Housing Authority, Refunding RB, Newark       
Redevelopment Project (NPFGC), 4.38%, 1/01/37    620  530,404 
Salem County Improvement Authority, RB, Finlaw Street     
Office Building (AGM), 5.38%, 8/15/28    400  388,712 
South Jersey Port Corp., Refunding RB:       
4.50%, 1/01/15    3,750  3,865,950 
4.50%, 1/01/16    1,920  1,969,248 
      50,848,011 
Education — 20.3%       
New Jersey EDA, RB:       
International Center For Public Health Project,       
University of Medicine and Dentistry (AMBAC),       
6.00%, 6/01/32    5,000  4,826,500 
School Facilities Construction, Series Y,       
5.00%, 9/01/33    3,000  2,859,390 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (continued)       
Education (concluded)       
New Jersey Educational Facilities Authority, RB:       
Montclair State University, Series A (AMBAC),       
5.00%, 7/01/21  $ 1,200  $ 1,234,608 
Montclair State University, Series A (AMBAC),       
5.00%, 7/01/22    2,880  2,949,811 
Richard Stockton College, Series F (NPFGC),       
5.00%, 7/01/31    2,625  2,468,130 
Rowan University, Series C (NPFGC),       
5.00%, 7/01/14 (c)    3,260  3,661,795 
Rowan University, Series C (NPFGC),       
5.13%, 7/01/14 (c)    3,615  4,075,587 
New Jersey Educational Facilities Authority, Refunding RB:     
College of New Jersey, Series D (AGM),       
5.00%, 7/01/35    9,740  9,458,806 
Montclair State University, Series J (NPFGC),       
4.25%, 7/01/30    3,775  3,285,383 
Ramapo College, Series I (AMBAC), 4.25%, 7/01/31  1,250  1,074,825 
Ramapo College, Series I (AMBAC), 4.25%, 7/01/36  900  740,628 
Rowan University, Series C (FGIC),       
5.25%, 7/01/11 (c)    240  247,308 
Rowan University, Series C (FGIC),       
5.25%, 7/01/11 (c)    285  293,678 
Rowan University, Series C (FGIC),       
5.25%, 7/01/11 (c)    265  273,069 
Rowan University, Series C (NPFGC),       
5.25%, 7/01/17    2,135  2,188,610 
Rowan University, Series C (NPFGC),       
5.25%, 7/01/18    2,535  2,597,589 
Rowan University, Series C (NPFGC),       
5.25%, 7/01/19    2,370  2,427,804 
Stevens Institute of Technology, Series A,       
5.00%, 7/01/27    2,800  2,606,800 
Stevens Institute of Technology, Series A,       
5.00%, 7/01/34    900  791,631 
William Paterson University, Series C (AGC),       
5.00%, 7/01/28    250  250,143 
William Paterson University, Series C (AGC),       
4.75%, 7/01/34    4,000  3,770,640 
Rutgers-State University of New Jersey, Refunding RB,     
Series F, 5.00%, 5/01/39    1,000  980,640 
University of Medicine & Dentistry of New Jersey, RB,       
Series A (AMBAC), 5.50%, 12/01/27    4,740  4,741,233 
University of Medicine & Dentistry of New Jersey, COP     
(NPFGC), 5.00%, 6/15/29    2,000  1,810,000 
      59,614,608 
Health — 15.6%       
New Jersey Health Care Facilities Financing Authority, RB:     
Greystone Park Psychiatric Hospital (AMBAC),       
5.00%, 9/15/23    10,775  10,764,441 
Meridian Health, Series I (AGC), 5.00%, 7/01/38  770  717,840 
Meridian Health, Series II (AGC), 5.00%, 7/01/38  6,375  5,943,158 
Meridian Health, Series V (AGC), 5.00%, 7/01/38  3,950  3,682,427 
South Jersey Hospital, 6.00%, 7/01/12 (c)    5,440  5,852,134 
Virtua Health (AGC), 5.50%, 7/01/38    1,900  1,916,454 
New Jersey Health Care Facilities Financing Authority,       
Refunding RB:       
AHS Hospital Corp., Series A (AMBAC),       
6.00%, 7/01/13 (d)    4,000  4,474,280 
Atlantic City Medical Center, 5.75%, 7/01/12 (c)  1,525  1,631,781 
Atlantic City Medical Center, 6.25%, 7/01/12 (c)  530  570,842 
Atlantic City Medical System, 6.25%, 7/01/17    925  958,198 
Atlantic City Medical System, 5.75%, 7/01/25    1,975  1,996,804 
Hackensack University Medical (AGM),       
4.63%, 1/01/30    5,480  4,837,908 

 

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (continued) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New Jersey (continued)     
Health (concluded)     
New Jersey Health Care Facilities Financing Authority,     
Refunding RB (concluded):     
Hackensack University Medical Center (AGC),     
5.13%, 1/01/27  $ 1,500  $ 1,470,360 
Meridian Health System Obligation Group (AGM),     
5.38%, 7/01/24  1,000  1,000,140 
    45,816,767 
Housing — 6.3%     
New Jersey State Housing & Mortgage Finance     
Agency, RB:     
Capital Fund Program, Series A (AGM),     
4.70%, 11/01/25  10,840  10,621,249 
Series AA, 6.50%, 10/01/38  2,720  2,927,944 
Series B (AGM), 1.10%, 5/01/12  2,850  2,846,808 
New Jersey State Housing & Mortgage Finance Agency,     
Refunding RB, S/F Housing, Series T, AMT,     
4.70%, 10/01/37  800  704,064 
Newark Housing Authority, RB, South Ward Police     
Facility (AGC):     
5.75%, 12/01/30  850  861,075 
6.75%, 12/01/38  500  549,455 
    18,510,595 
State — 45.2%     
Garden State Preservation Trust, RB (AGM):     
CAB, Series B, 4.58%, 11/01/23 (e)  9,000  4,965,030 
CAB, Series B, 4.81%, 11/01/25 (e)  10,000  4,842,700 
Election of 2005, Series A, 5.80%, 11/01/21  1,960  2,214,957 
Election of 2005, Series A, 5.80%, 11/01/23  2,730  3,059,975 
Garden State Preservation Trust, Refunding RB,     
Series C (AGM):     
5.25%, 11/01/20  5,000  5,692,000 
5.25%, 11/01/21  7,705  8,699,715 
New Jersey EDA, RB:     
Cigarette Tax, 5.63%, 6/15/19  2,700  2,665,278 
Cigarette Tax (Radian), 5.75%, 6/15/29  2,000  1,789,100 
Cigarette Tax (Radian), 5.50%, 6/15/31  585  514,730 
Cigarette Tax (Radian), 5.75%, 6/15/34  1,180  1,032,134 
Liberty State Park Project, Series C (AGM),     
5.00%, 3/01/22  2,670  2,787,774 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/24  1,785  1,798,620 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/25  4,000  3,991,800 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/26  7,500  7,382,925 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.25%, 7/01/33  11,105  10,917,770 
Motor Vehicle Surcharge, Series A (NPFGC),     
5.00%, 7/01/34  2,000  1,829,800 
School Facilities Construction, Series L (AGM),     
5.00%, 3/01/30  9,000  9,002,880 
School Facilities Construction, Series O,     
5.25%, 3/01/23  1,420  1,475,366 
School Facilities Construction, Series Z (AGC),     
6.00%, 12/15/34  2,800  2,987,516 
School Facilities, Series U (AMBAC),     
5.00%, 9/01/37  2,500  2,359,625 
New Jersey EDA, Refunding RB:     
New Jersey American Water Co., Inc. Project,     
Series B, AMT, 5.60%, 11/01/34  2,150  2,046,864 
School Facilities Construction, Series N-1 (NPFGC),     
5.50%, 9/01/27  1,000  1,019,620 

 

  Par   
Municipal Bonds  (000)  Value 
New Jersey (continued)     
State (concluded)     
New Jersey Educational Facilities Authority, RB, Higher     
Education Capital Improvement, Series A (AMBAC),     
5.13%, 9/01/12 (c)  $ 5,500  $ 5,901,555 
New Jersey Sports & Exposition Authority, RB, Series A     
(NPFGC), 6.00%, 3/01/13  2,400  2,409,816 
New Jersey Sports & Exposition Authority,     
Refunding RB (NPFGC):     
5.50%, 3/01/21  5,890  6,171,601 
5.50%, 3/01/22  3,150  3,247,461 
New Jersey Transportation Trust Fund Authority, RB,     
Transportation System:     
CAB, Series C (AGM), 6.71%, 12/15/32 (e)  4,050  955,354 
CAB, Series C (AMBAC), 6.91%, 12/15/35 (e)  1,400  257,670 
CAB, Series C (AMBAC), 6.95%, 12/15/36 (e)  5,500  939,565 
Series A (AGC), 5.63%, 12/15/28  2,000  2,109,680 
Series D (AGM), 5.00%, 6/15/19  5,240  5,429,950 
New Jersey Transportation Trust Fund Authority,     
Refunding RB, Transportation System:     
Series A (AGM), 5.25%, 12/15/20  10,750  11,446,385 
Series B (NPFGC), 5.50%, 12/15/21  9,165  9,786,295 
State of New Jersey, COP, Equipment Lease Purchase,     
Series A, 5.25%, 6/15/27  1,080  1,064,772 
    132,796,283 
Tobacco — 1.8%     
Tobacco Settlement Financing Corp. New Jersey, RB,     
7.00%, 6/01/13 (c)  4,755  5,415,184 
Transportation — 25.3%     
Delaware River Port Authority Pennsylvania     
& New Jersey, RB (AGM):     
5.50%, 1/01/12  5,000  5,018,150 
5.63%, 1/01/13  6,000  6,022,320 
Delaware River Port Authority, RB:     
Port District Project, Series B (AGM),     
5.63%, 1/01/26  2,425  2,425,994 
Series D (AGC), 5.00%, 1/01/40  3,700  3,536,534 
New Jersey State Turnpike Authority, RB, Growth     
& Income Securities, Series B (AMBAC),     
5.73%, 1/01/15 (b)  7,615  5,758,082 
New Jersey State Turnpike Authority, Refunding RB:     
Series A (AGM), 5.25%, 1/01/26  4,900  5,154,163 
Series A (AGM), 5.25%, 1/01/29  2,000  2,068,240 
Series A (AGM), 5.25%, 1/01/30  4,000  4,101,480 
Series A (BHAC), 5.25%, 1/01/29  500  521,905 
Series C (NPFGC), 6.50%, 1/01/16  910  1,062,261 
Series C (NPFGC), 6.50%, 1/01/16 (d)  4,355  4,912,440 
Series C-2005 (NPFGC), 6.50%, 1/01/16 (d)  255  309,675 
New Jersey Transportation Trust Fund Authority, RB,     
Transportation System:     
Series A (AGM), 5.50%, 12/15/22  150  159,872 
Series A (AMBAC), 5.00%, 12/15/32  1,425  1,387,936 
Series A (NPFGC), 5.75%, 6/15/24  1,205  1,277,890 
Series C, 5.50%, 6/15/13 (c)  780  866,042 
Port Authority of New York & New Jersey, RB:     
Consolidated One Hundred Sixty-Third Series,     
5.00%, 7/15/39  4,000  3,835,920 
JFK International Air Terminal, 6.00%, 12/01/42  2,500  2,359,675 
Special Project, JFK International Air Terminal,     
Series 6, AMT (NPFGC), 6.25%, 12/01/11  13,500  13,804,830 
Special Project, JFK International Air Terminal,     
Series 6, AMT (NPFGC), 6.25%, 12/01/15  1,500  1,575,570 
Special Project, JFK International Air Terminal,     
Series 6, AMT (NPFGC), 5.75%, 12/01/25  3,000  2,867,190 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.75%, 11/01/30  5,175  5,306,911 
    74,333,080 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 17



Schedule of Investments (continued) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey (concluded)       
Utilities — 4.8%       
Atlantic Highlands Highland Regional Sewage Authority,     
Refunding RB (NPFGC), 5.50%, 1/01/20  $ 1,875  $ 1,899,113 
Essex County Utilities Authority, Refunding RB (AGC):       
4.00%, 4/01/12    1,000  1,036,760 
4.13%, 4/01/22    2,000  1,976,980 
New Jersey EDA, RB, New Jersey American Water Co., Inc.     
Project, Series A, AMT (AMBAC), 5.25%, 11/01/32  3,000  2,772,870 
North Hudson Sewerage Authority, Refunding RB,       
Series A (NPFGC), 5.13%, 8/01/20    4,335  4,426,555 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
(NPFGC), 6.43%, 9/01/28 (e)    6,600  2,167,506 
      14,279,784 
Total Municipal Bonds in New Jersey      406,604,562 
Guam — 0.6%       
Utilities — 0.6%       
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37    1,860  1,670,745 
Puerto Rico — 13.0%       
County/City/Special District/School District — 2.8%     
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 6.00%, 8/01/42    2,500  2,492,275 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
First Sub-Series C (AGM), 5.13%, 8/01/42    6,120  5,692,028 
      8,184,303 
Health — 1.2%       
Puerto Rico Industrial Tourist Educational Medical       
& Environmental Control Facilities Financing Authority,     
RB, Series A:       
Hosp Auxilio Mutuo Obligation Group (NPFGC),       
6.25%, 7/01/24    1,780  1,780,801 
Hospital De La Concepcion, 6.50%, 11/15/20    1,750  1,772,715 
      3,553,516 
Housing — 2.1%       
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,       
5.13%, 12/01/27    6,235  6,196,343 
State — 1.6%       
Commonwealth of Puerto Rico, GO, Refunding, Public     
Improvement, Series C, 6.00%, 7/01/39    2,080  2,030,038 
Puerto Rico Commonwealth Infrastructure       
Financing Authority, RB, CAB, Series A (AMBAC),       
7.64%, 7/01/37 (e)    4,000  552,480 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series M-3 (NPFGC),       
6.00%, 7/01/27    2,125  2,142,553 
      4,725,071 
Transportation — 1.7%       
Puerto Rico Highway & Transportation Authority,       
Refunding RB, Series CC (AGC), 5.50%, 7/01/31    5,000  4,981,500 

 

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Utilities — 3.6%     
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,   
Series A (AGC), 5.13%, 7/01/47  $ 6,120  $ 5,473,422 
Puerto Rico Electric Power Authority, RB, Series RR     
(CIFG), 5.00%, 7/01/28  4,100  3,806,850 
Puerto Rico Electric Power Authority, Refunding RB,     
Series VV (NPFGC), 5.25%, 7/01/26  1,325  1,286,787 
    10,567,059 
Total Municipal Bonds in Puerto Rico    38,207,792 
Total Municipal Bonds — 151.9%    446,483,099 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (f)     
New Jersey — 7.1%     
Housing — 1.7%     
New Jersey State Housing & Mortgage Finance     
Agency, RB, Capital Fund Program, Series A (AGM),     
5.00%, 5/01/27  4,790  4,908,121 
State — 3.4%     
Garden State Preservation Trust, RB, Election of 2005,     
Series A (AGM), 5.75%, 11/01/28  9,160  10,053,741 
Transportation — 2.0%     
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  5,998  5,717,970 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 7.1%    20,679,832 
Total Long-Term Investments     
(Cost — $477,267,716) — 159.0%    467,162,931 
Short-Term Securities  Shares   
BIF New Jersey Municipal Money Fund,     
0.04% (g)(h)  8,561,022  8,561,022 
Total Short-Term Securities     
(Cost — $8,561,022) — 2.9%    8,561,022 
Total Investments (Cost — $485,828,738*) — 161.9%    475,723,953 
Other Assets Less Liabilities — 1.4%    4,142,757 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (4.5)%    (13,272,970) 
Preferred Shares, at Redemption Value — (58.8)%    (172,710,100) 
Net Assets Applicable to Common Shares — 100.0%    $293,883,640 


* The cost and unrealized appreciation (depreciation) of investments as of

January 31, 2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 473,073,339 
Gross unrealized appreciation  $     7,564,220 
Gross unrealized depreciation  (18,176,536) 
Net unrealized depreciation  $ (10,612,316) 

 

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (concluded) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

(a) Variable rate security. Rate shown is as of report date.
(b) 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 reflects the current
yield as of report date.
(c) 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.
(d) Security is collateralized by Municipal or US Treasury obligations.
(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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
BIF New Jersey         
Municipal         
Money Fund  1,117,529  7,443,493  8,561,022  $ 1,305 

 

(h) Represents the current yield as of report date.
For Fund compliance purposes, the Fund’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or rating group indexes, and/or as defined by Fund management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2   Level 3  Total 
Assets:                   
Investments in:         
Securities:         
Long-Term         
Investments1    $ 467,162,931    $ 467,162,931 
Short-Term         
Securities  $ 8,561,022      8,561,022 
Total  $ 8,561,022  $ 467,162,931    $ 475,723,953 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 19



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield Investment Quality Fund (MFT)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Alabama — 4.5%       
Birmingham Special Care Facilities Financing Authority,     
RB, Children’s Hospital (AGC):       
6.13%, 6/01/34  $ 1,500  $ 1,573,095 
6.00%, 6/01/39    2,985  3,086,669 
      4,659,764 
Arizona — 0.4%       
State of Arizona, COP, Department of Administration,       
Series A (AGM), 5.25%, 10/01/28    480  461,270 
California — 19.4%       
California Educational Facilities Authority, RB, University     
of Southern California, Series A, 5.25%, 10/01/38  1,960  1,975,837 
California Health Facilities Financing Authority, Refunding     
RB, Sutter Health, Series B, 6.00%, 8/15/42 (a)    1,150  1,129,208 
California State Public Works Board, RB, Various Capital     
Projects, Series G-1 (AGC), 5.25%, 10/01/24    2,000  2,041,020 
California State University, RB, Systemwide, Series A       
(AGM), 5.00%, 11/01/39    1,000  917,330 
County of Sacramento California, RB, Senior Series A       
(AGC), 5.50%, 7/01/41    1,400  1,355,760 
Los Angeles Community College District California, GO:     
Election of 2001, Series A (NPFGC),       
5.00%, 8/01/32    2,780  2,612,644 
Election of 2008, Series C, 5.25%, 8/01/39    1,000  946,370 
Oxnard Union High School District, GO, Refunding,       
Election of 2004, Series A (AGM), 5.00%, 8/01/40  1,500  1,339,155 
San Diego Community College District California, GO,       
Election of 2002 (AGM), 5.00%, 5/01/30    885  853,131 
San Diego Public Facilities Financing Authority,       
Refunding RB, Series B (AGC), 5.38%, 8/01/34    1,020  1,026,569 
San Jacinto Unified School District, GO, Election       
of 2006 (AGM), 5.25%, 8/01/32    1,000  960,180 
State of California, GO, Various Purpose:       
(AGC), 5.50%, 11/01/39    3,450  3,305,686 
(AGM), 5.00%, 6/01/32    2,000  1,828,280 
      20,291,170 
Colorado — 1.6%       
Colorado Health Facilities Authority, RB, Hospital,       
NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26  1,300  1,370,083 
Regional Transportation District, COP, Series A,       
5.00%, 6/01/25    305  297,964 
      1,668,047 
Florida — 18.2%       
County of Lee Florida, RB, Series A, AMT (AGM),       
6.00%, 10/01/29    1,000  1,003,720 
County of Miami-Dade Florida, RB, Miami International     
Airport, Series A, AMT (AGM), 5.50%, 10/01/41    2,350  2,182,821 
County of Osceola Florida, RB, Series A (NPFGC),       
5.50%, 10/01/27    1,100  1,104,598 
County of St. John’s Florida, RB (AGM),       
5.00%, 10/01/31    1,275  1,225,670 
Florida Housing Finance Corp., HRB, Brittany       
Rosemont Apartments, Series C-1, AMT (AMBAC),       
6.75%, 8/01/14    570  570,781 
Florida Housing Finance Corp., RB, Homeowner       
Mortgage, Series 11, AMT (AGM), 5.95%, 1/01/32  1,395  1,395,265 
Florida Housing Finance Corp., Refunding RB,       
Homeowner Mortgage, Series 4, AMT (AGM),       
6.25%, 7/01/22    210  212,587 
Jacksonville Economic Development Commission, RB,     
Mayo Clinic, Series B (NPFGC), 5.50%, 11/15/36    750  735,750 
Palm Beach County School District, COP, Refunding,       
Series D (AGM), 5.25%, 8/01/21    1,925  1,976,610 

 

    Par   
Municipal Bonds    (000)  Value 
Florida (concluded)       
Santa Rosa County School Board, COP, Refunding,       
Series 2 (NPFGC), 5.25%, 2/01/26  $ 1,930  $ 1,954,511 
South Broward Hospital District, RB, Hospital (NPFGC),     
5.63%, 5/01/12 (b)    3,000  3,214,320 
St. Lucie West Services District, RB (NPFGC),       
5.25%, 10/01/34    1,000  946,810 
Village Center Community Development District, RB,       
Series A (NPFGC):       
5.13%, 11/01/36    1,000  778,560 
5.38%, 11/01/34    1,640  1,339,880 
Volusia County IDA, RB, Student Housing, Stetson       
University Project, Series A (CIFG), 5.00%, 6/01/35  525  413,285 
      19,055,168 
Georgia — 5.0%       
City of Atlanta Georgia, RB, General, Series A (AGM),       
5.00%, 1/01/40    940  873,579 
County of Fulton Georgia, RB (NPFGC), 5.25%, 1/01/35  1,000  1,000,220 
Gwinnett County Hospital Authority, Refunding RB,       
Gwinnett Hospital System, Series D (AGM),       
5.50%, 7/01/41    1,375  1,282,944 
Metropolitan Atlanta Rapid Transit Authority, RB, Third       
Indenture, Series B (AGM), 5.00%, 7/01/34    2,100  2,065,749 
      5,222,492 
Illinois — 12.6%       
Chicago Board of Education Illinois, GO, Refunding,       
Chicago School Reform Board, Series A (NPFGC),       
5.50%, 12/01/26    680  670,759 
Chicago Transit Authority, RB, Federal Transit       
Administration Section 5309, Series A (AGC),       
6.00%, 6/01/26    1,400  1,452,052 
City of Chicago Illinois, GO, Refunding, Projects,       
Series A (AGM):       
5.00%, 1/01/29    1,465  1,341,515 
5.00%, 1/01/30    585  532,894 
City of Chicago Illinois, RB, General, Third Lien, Series C     
(AGM), 5.25%, 1/01/35    835  799,880 
City of Chicago Illinois, Refunding RB, Second Lien       
(NPFGC), 5.50%, 1/01/30    895  893,962 
Illinois Municipal Electric Agency, RB, Series A (NPFGC):     
5.25%, 2/01/28    1,565  1,539,099 
5.25%, 2/01/35    1,250  1,197,400 
Railsplitter Tobacco Settlement Authority, RB:       
5.50%, 6/01/23    940  889,964 
6.00%, 6/01/28    270  257,672 
State of Illinois, RB:       
(AGM), 5.00%, 6/15/27    1,000  948,490 
Build Illinois, Series B, 5.25%, 6/15/28    1,750  1,688,050 
Village of Schaumburg Illinois, GO, Series B (NPFGC),     
5.00%, 12/01/38    1,000  929,100 
      13,140,837 
Indiana — 4.5%       
Indiana Municipal Power Agency, RB, Series A (NPFGC),     
5.00%, 1/01/42    1,485  1,336,634 
Indianapolis Local Public Improvement Bond Bank,       
Refunding RB, Waterworks Project, Series A (AGC),       
5.50%, 1/01/38    3,310  3,393,048 
      4,729,682 
Kentucky — 1.1%       
Kentucky Municipal Power Agency, RB, Prairie State       
Project, Series A (BHAC), 5.25%, 9/01/42    1,250  1,194,363 

 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (continued) BlackRock MuniYield Investment Quality Fund (MFT)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Louisiana — 2.0%       
Louisiana State Citizens Property Insurance Corp., RB,     
Series C-3 (AGC), 6.13%, 6/01/25  $ 1,405  $ 1,516,037 
New Orleans Aviation Board Louisiana, Refunding GARB,     
Restructuring (AGC):       
Series A-1, 6.00%, 1/01/23    375  406,642 
Series A-2, 6.00%, 1/01/23    160  173,501 
      2,096,180 
Michigan — 18.6%       
City of Detroit Michigan, RB, Second Lien:       
Series B (AGM), 7.50%, 7/01/33    1,500  1,737,105 
Series B (AGM), 6.25%, 7/01/36    1,800  1,888,650 
Series B (AGM), 7.00%, 7/01/36    200  220,550 
Series B (BHAC), 5.50%, 7/01/35    3,750  3,670,912 
Series B (NPFGC), 5.50%, 7/01/29    1,640  1,550,046 
System, Series A (BHAC), 5.50%, 7/01/36    2,265  2,178,024 
City of Detroit Michigan, Refunding RB:       
Second Lien, Series E (BHAC), 5.75%, 7/01/31    2,270  2,279,375 
Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27    1,650  1,841,944 
Michigan State Building Authority, RB, Facilities Program,     
Series H (AGM), 5.00%, 10/15/26    375  363,855 
Michigan State Building Authority, Refunding RB,       
Facilities Program, Series I (AGC):       
5.25%, 10/15/22    1,350  1,411,574 
5.25%, 10/15/24    615  623,530 
5.25%, 10/15/25    310  310,233 
Royal Oak Hospital Finance Authority Michigan,       
Refunding RB, William Beaumont Hospital,       
8.25%, 9/01/39    1,265  1,408,590 
      19,484,388 
Minnesota — 3.0%       
City of Minneapolis Minnesota, Refunding RB, Fairview     
Health Services, Series B (AGC), 6.50%, 11/15/38  3,000  3,148,950 
Nevada — 5.0%       
County of Clark Nevada, RB:       
Las Vegas-McCarran International Airport, Series A     
(AGC), 5.25%, 7/01/39    2,355  2,178,611 
Subordinate Lien, Series A-2 (NPFGC),       
5.00%, 7/01/36    3,500  3,091,900 
      5,270,511 
New Jersey — 2.4%       
New Jersey EDA, RB, School Facilities Construction,       
Series Z (AGC), 6.00%, 12/15/34    1,000  1,066,970 
New Jersey Health Care Facilities Financing Authority, RB,     
Virtua Health (AGC), 5.50%, 7/01/38    1,400  1,412,124 
      2,479,094 
New York — 3.5%       
New York City Municipal Water Finance Authority,       
RB, Second General Resolution, Series EE,       
5.38%, 6/15/43    525  526,759 
New York City Transitional Finance Authority, RB,       
Fiscal 2009:       
Series S-3, 5.25%, 1/15/39    1,000  998,520 
Series S-4 (AGC), 5.50%, 1/15/29    2,000  2,090,280 
      3,615,559 
Ohio — 1.4%       
Ohio Higher Educational Facility Commission, Refunding     
RB, Summa Health System, 2010 Project (AGC),       
5.25%, 11/15/40    1,650  1,505,163 

 

    Par   
Municipal Bonds    (000)  Value 
Pennsylvania — 7.0%       
City of Philadelphia Pennsylvania, RB, Series C (AGM):     
5.00%, 8/01/35  $ 1,615  $ 1,519,440 
5.00%, 8/01/40    2,880  2,674,973 
Pennsylvania Turnpike Commission, RB, Sub-Series B       
(AGM), 5.25%, 6/01/39    1,455  1,386,935 
Pennsylvania Turnpike Commission, Refunding RB,       
Sub-Series B-1 (AGM), 5.00%, 12/01/37    1,855  1,710,922 
      7,292,270 
Puerto Rico — 1.4%       
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 6.38%, 8/01/39    1,425  1,459,229 
Texas — 24.0%       
City of Austin Texas, Refunding RB, Series A (AGM):       
5.00%, 11/15/28    720  711,591 
5.00%, 11/15/29    915  897,450 
City of Dallas Texas, Refunding RB (AGC),       
5.25%, 8/15/38    450  429,831 
City of Houston Texas, Refunding RB, Combined,       
First Lien, Series A (AGC):       
5.38%, 8/15/27    1,000  1,015,620 
6.00%, 11/15/35    2,700  2,917,269 
6.00%, 11/15/36    2,055  2,218,927 
County of Bexar Texas, RB, Venue Project, Motor Vehicle     
Rental (BHAC):       
5.00%, 8/15/27    1,040  1,040,624 
5.00%, 8/15/28    1,090  1,071,241 
5.00%, 8/15/39    880  815,795 
Dallas Area Rapid Transit, Refunding RB, Senior Lien,       
5.25%, 12/01/38    1,520  1,524,727 
Frisco ISD Texas, GO, School Building (AGC),       
5.50%, 8/15/41    1,210  1,240,613 
Harris County Health Facilities Development Corp.,       
Refunding RB, Memorial Hermann Healthcare System,     
Series B, 7.25%, 12/01/35    500  536,935 
Lower Colorado River Authority, Refunding RB,       
LCRA Transmission Services Project (AGC),       
5.50%, 5/15/36    1,155  1,140,909 
Lubbock Cooper ISD Texas, GO, School Building (AGC),     
5.75%, 2/15/42    500  509,645 
North Texas Tollway Authority, RB, System, First Tier,       
Series K-1 (AGC), 5.75%, 1/01/38    1,400  1,399,916 
North Texas Tollway Authority, Refunding RB, System,       
First Tier, Series A:       
(AGC), 5.75%, 1/01/40    1,500  1,495,725 
(BHAC), 5.75%, 1/01/48    1,640  1,640,837 
(NPFGC), 5.13%, 1/01/28    3,500  3,363,955 
Tarrant County Cultural Education Facilities Finance       
Corp., Refunding RB, Christus Health, Series A (AGC),     
6.50%, 7/01/37    1,100  1,126,543 
      25,098,153 
Iowa — 1.1%       
Iowa Finance Authority, Refunding RB, Iowa Health       
System (AGC), 5.25%, 2/15/29    1,190  1,154,883 
Virginia — 1.1%       
Virginia Public School Authority, RB, School Financing,     
6.50%, 12/01/35    1,100  1,193,896 
Utah — 1.5%       
City of Riverton Utah, RB, IHC Health Services Inc.,       
5.00%, 8/15/41    1,670  1,528,701 
Total Municipal Bonds — 139.3%      145,749,770 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 21



Schedule of Investments (continued) BlackRock MuniYield Investment Quality Fund (MFT)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (c)    (000)  Value 
Alabama — 1.4%       
Mobile Board of Water & Sewer Commissioners, RB       
(NPFGC), 5.00%, 1/01/31  $ 1,500  $ 1,444,980 
California — 2.3%       
San Diego Community College District California, GO,     
Election of 2002 (AGM), 5.00%, 5/01/30    2,500  2,409,975 
District of Columbia — 0.8%       
District of Columbia Water & Sewer Authority, RB,       
Series A, 6.00%, 10/01/35    750  810,723 
Florida — 4.9%       
City of Jacksonville Florida, RB, Better Jacksonville       
(NPFGC), 5.00%, 10/01/27    1,320  1,319,908 
Hillsborough County Aviation Authority, RB, Series A, AMT     
(AGC), 5.50%, 10/01/38    2,499  2,336,102 
Lee County Housing Finance Authority, RB,       
Multi-County Program, Series A-2, AMT (Ginnie Mae),     
6.00%, 9/01/40    810  847,657 
Manatee County Housing Finance Authority, RB,       
Series A, AMT (Ginnie Mae), 5.90%, 9/01/40    590  614,229 
      5,117,896 
Illinois — 2.6%       
Chicago Transit Authority, Refunding RB, Federal Transit     
Administration Section 5309 (AGM), 5.00%, 6/01/28  2,999  2,744,493 
Kentucky — 1.0%       
Kentucky State Property & Building Commission,       
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27  1,002  1,019,558 
Nevada — 4.0%       
Clark County Water Reclamation District, GO:       
Limited Tax, 6.00%, 7/01/38    2,010  2,151,162 
Series B, 5.50%, 7/01/29    1,994  2,049,712 
      4,200,874 
New Jersey — 1.5%       
New Jersey State Housing & Mortgage Finance Agency,     
RB, S/F Housing, Series CC, 5.25%, 10/01/29    1,620  1,590,112 
New York — 6.0%       
New York City Municipal Water Finance Authority, RB,       
Series FF-2, 5.50%, 6/15/40    1,095  1,118,929 
New York State Dormitory Authority, ERB, Series B,       
5.25%, 3/15/38    3,250  3,258,320 
New York State Thruway Authority, RB, Series G (AGM),     
5.00%, 1/01/32    2,000  1,936,880 
      6,314,129 
Texas — 2.5%       
City of San Antonio Texas, Refunding RB, Series A,       
5.25%, 2/01/31    2,609  2,664,086 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 27.0%      28,316,826 
Total Long-Term Investments       
(Cost — $178,984,840) — 166.3%      174,066,596 

 

Short-Term Securities  Shares  Value 
FFI Institutional Tax-Exempt Fund, 0.15% (d)(e)  1,555,200  $ 1,555,200 
Total Short-Term Securities     
(Cost — $1,555,200) — 1.5%    1,555,200 
Total Investments (Cost — $180,540,040*) — 167.8%    175,621,796 
Other Assets Less Liabilities — 1.0%    1,092,119 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (14.8)%    (15,538,639) 
Preferred Shares, at Redemption Value — (54.0)%    (56,530,652) 
Net Assets Applicable to Common Shares — 100.0%    $104,644,624 


* The cost and unrealized appreciation (depreciation) of investments as of January 31,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $164,923,956 
Gross unrealized appreciation  $    1,992,540 
Gross unrealized depreciation  (6,819,799) 
Net unrealized depreciation  $  (4,827,259) 

 

(a) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Morgan Stanley Co. Inc.  $1,129,208  $10,914 


(b) 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.
(c) 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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(d) 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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
FFI Institutional         
Tax-Exempt Fund  8,124,572  (6,569,372)  1,555,200  $ 3,056 


(e) Represents the current yield as of report date.

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (concluded) BlackRock MuniYield Investment Quality Fund (MFT)

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3    Total 
Assets:           
Investments in           
Securities:           
Long-Term           
Investments1    $ 174,066,596    $ 174,066,596 
Short-Term           
Securities  $ 1,555,200        1,555,200 
Total  $ 1,555,200  $ 174,066,596    $ 175,621,796 
1 See above Schedule of Investments for values in each state or   
political subdivision.         

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 23



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Michigan — 140.0%       
Corporate — 12.6%       
Delta County EDC, Refunding RB, Mead Westvaco-       
Escanaba, Series B, AMT, 6.45%, 4/15/12 (a)  $ 1,500  $ 1,605,975 
Dickinson County EDC Michigan, Refunding RB,       
International Paper Co. Project, Series A,       
5.75%, 6/01/16    3,900  3,948,048 
Michigan Strategic Fund, Refunding RB, Detroit Edison     
Co. Project, Series A, AMT (NPFGC), 5.55%, 9/01/29  10,250  9,903,858 
Monroe County EDC Michigan, Refunding RB,       
Detroit Edison Co. Project, Series AA (NPFGC),       
6.95%, 9/01/22    13,800  15,950,040 
      31,407,921 
County/City/Special District/School District — 47.5%     
Adrian City School District Michigan, GO (AGM) (a):       
5.00%, 5/01/14    1,600  1,791,568 
5.00%, 5/01/14    2,000  2,239,460 
Avondale School District Michigan, GO (AGC):       
4.00%, 5/01/20    1,000  972,560 
4.30%, 5/01/22    400  387,920 
Bay City School District Michigan, GO, School Building     
& Site (AGM), 5.00%, 5/01/36    9,000  8,285,400 
Birmingham City School District Michigan, GO, School     
Building & Site (AGM), 5.00%, 11/01/33    1,000  970,820 
Charter Township of Canton Michigan, GO, Capital       
Improvement (AGM):       
5.00%, 4/01/25    1,840  1,839,503 
5.00%, 4/01/26    2,000  1,972,680 
5.00%, 4/01/27    500  501,280 
City of Oak Park Michigan, GO, Street Improvement       
(NPFGC), 5.00%, 5/01/30    500  488,480 
County of Genesee Michigan, GO, Refunding, Series A     
(NPFGC), 5.00%, 5/01/19    600  625,530 
County of Genesee Michigan, GO, Water Supply System     
(NPFGC), 5.13%, 11/01/33    1,000  939,230 
County of Wayne Michigan, GO (NPFGC):       
Airport Hotel, Detroit Metropolitan Airport, Series A,     
5.00%, 12/01/30    1,750  1,476,773 
Building Authority, Capital Improvement, Series A,     
5.25%, 6/01/16    1,000  1,003,520 
Dearborn Brownfield Redevelopment Authority, GO,       
Limited Tax, Redevelopment, Series A (AGC),       
5.50%, 5/01/39    3,300  3,290,298 
Detroit City School District Michigan, GO, Refunding,       
School Building & Site Improvement, Series A (AGM),     
5.00%, 5/01/21    3,000  3,006,600 
Detroit City School District Michigan, GO, School       
Building & Site Improvement (FGIC):       
Series A, 5.38%, 5/01/13 (a)    1,300  1,428,570 
Series B, 5.00%, 5/01/28    3,100  2,837,926 
Eaton Rapids Public Schools Michigan, GO, School       
Building & Site (AGM):       
5.25%, 5/01/20    1,325  1,404,566 
5.25%, 5/01/21    1,675  1,745,534 
Gibraltar School District Michigan, GO, School       
Building & Site:       
(FGIC), 5.00%, 5/01/14 (a)    2,940  3,292,006 
(NPFGC), 5.00%, 5/01/28    710  682,175 
Grand Blanc Community Schools Michigan, GO (NPFGC),     
5.63%, 5/01/20    1,100  1,130,701 
Grand Rapids Building Authority Michigan, RB, Series A     
(AMBAC) (a):       
5.50%, 10/01/12    435  470,292 
5.50%, 10/01/12    600  648,678 

 

    Par   
Municipal Bonds    (000)  Value 
Michigan (continued)       
County/City/Special District/School District (concluded)     
Grand Rapids Public Schools Michigan, GO, School       
Building & Site (AGM), 4.13%, 5/01/11  $ 500  $ 504,440 
Gull Lake Community School District, GO, Refunding       
(AGM), 4.00%, 5/01/26    995  896,555 
Gull Lake Community School District Michigan, GO,       
School Building & Site (AGM) (a):       
5.00%, 5/01/14    2,000  2,244,220 
5.00%, 5/01/14    3,625  4,067,649 
Harper Creek Community School District Michigan, GO,     
Refunding (AGM), 5.00%, 5/01/22    1,125  1,164,094 
Harper Woods School District Michigan, GO, Refunding,     
School Building & Site:       
(FGIC), 5.00%, 5/01/14 (a)    4,345  4,857,840 
(NPFGC), 5.00%, 5/01/34    430  396,649 
Jenison Public Schools Michigan, GO, Building and Site     
(NPFGC), 5.50%, 5/01/12 (a)    1,575  1,672,524 
L’Anse Creuse Public Schools Michigan, GO, School       
Building & Site (AGM):       
5.00%, 5/01/12    650  681,265 
5.00%, 5/01/24    1,000  1,015,600 
5.00%, 5/01/25    1,525  1,540,570 
5.00%, 5/01/26    1,600  1,573,072 
5.00%, 5/01/35    3,000  2,838,570 
Lansing Building Authority Michigan, GO, Series A       
(NPFGC), 5.38%, 6/01/13 (a)    1,510  1,668,505 
Lincoln Consolidated School District Michigan, GO,       
Refunding (NPFGC), 4.63%, 5/01/28    5,500  4,996,310 
Livonia Public Schools School District Michigan, GO,       
Refunding, Series A (NPFGC), 5.00%, 5/01/24    1,000  1,000,520 
Michigan State Building Authority, Facilities, Series I:       
5.50%, 10/15/11 (a)    145  150,092 
5.50%, 10/15/18    2,355  2,414,864 
Michigan State Building Authority, RB, Facilities Program,     
Series H (AGM), 5.00%, 10/15/26    4,500  4,366,260 
Michigan State Building Authority, Refunding RB,       
Facilities Program, Series I (AGM), 5.50%, 10/15/11  12,175  12,603,195 
Montrose Community Schools, GO (NPFGC),       
6.20%, 5/01/17    1,000  1,158,780 
New Haven Community Schools Michigan, GO, Refunding,     
School Building & Site (AGM), 5.00%, 5/01/23    1,500  1,527,390 
Orchard View Schools Michigan, GO, School Building       
& Site (NPFGC), 5.00%, 11/01/13 (a)    5,320  5,913,552 
Pennfield School District Michigan, GO, School Building     
& Site (a):       
(FGIC), 5.00%, 5/01/14    765  855,293 
(NPFGC), 5.00%, 5/01/14    605  676,408 
Reed City Public Schools Michigan, GO, School Building     
& Site (AGM), 5.00%, 5/01/14 (a)    1,425  1,599,007 
Rochester Community School District, GO (NPFGC),       
5.00%, 5/01/19    435  465,602 
Southfield Public Schools Michigan, GO, School Building     
& Site, Series B (AGM), 5.00%, 5/01/14 (a)    3,500  3,927,385 
Thornapple Kellogg School District Michigan, GO, School     
Building & Site (NPFGC), 5.00%, 5/01/32    2,500  2,344,275 
Van Dyke Public Schools Michigan, GO, School Building     
& Site (AGM), 5.00%, 5/01/28    1,250  1,210,588 
West Bloomfield School District Michigan, GO,       
Refunding (NPFGC):       
5.50%, 5/01/17    1,710  1,786,215 
5.50%, 5/01/18    1,225  1,279,598 
Zeeland Public Schools Michigan, GO, School Building     
& Site (NPFGC), 5.00%, 5/01/29    1,600  1,560,608 
      118,389,565 

 

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (continued) BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Michigan (continued)       
Education — 6.4%       
Eastern Michigan University, Refunding RB, General       
(AMBAC), 6.00%, 6/01/20  $ 435  $ 440,851 
Grand Valley State University Michigan, RB, General       
(NPFGC), 5.50%, 2/01/18    2,070  2,250,235 
Michigan Higher Education Facilities Authority, RB,       
Limited Obligation, Hillsdale College Project,       
5.00%, 3/01/35    1,875  1,610,006 
Michigan Higher Education Facilities Authority,       
Refunding RB, Limited Obligation, Creative Studies (a):     
5.85%, 6/01/12    1,235  1,318,437 
5.90%, 6/01/12    1,145  1,223,123 
Michigan Higher Education Student Loan Authority,       
RB, Student Loan, Series XVII-Q, AMT (AMBAC),       
5.00%, 3/01/31    3,000  2,561,940 
Michigan State University, Refunding RB, General,       
Series C, 5.00%, 2/15/40    4,700  4,587,341 
Saginaw Valley State University Michigan, Refunding RB,     
General (NPFGC), 5.00%, 7/01/24    2,100  2,045,862 
      16,037,795 
Health — 19.0%       
Dickinson County Healthcare System, Refunding RB,       
Series A (ACA), 5.80%, 11/01/24    3,100  3,126,598 
Flint Hospital Building Authority Michigan, Refunding RB,     
Hurley Medical Center (ACA):       
6.00%, 7/01/20    1,205  1,129,133 
Series A, 5.38%, 7/01/20    615  547,817 
Kalamazoo Hospital Finance Authority, RB, Bronson       
Methodist Hospital (AGM), 5.25%, 5/15/36    4,750  4,358,172 
Kent Hospital Finance Authority Michigan, RB, Spectrum     
Health, Series A (NPFGC), 5.50%, 7/15/11 (a)    3,000  3,098,760 
Kent Hospital Finance Authority Michigan, Refunding RB,     
Butterworth, Series A (NPFGC), 7.25%, 1/15/13 (b)  1,170  1,249,513 
Michigan State Hospital Finance Authority, RB:       
Ascension Health Senior Credit Group,       
5.00%, 11/15/25    3,700  3,661,631 
Hospital, MidMichigan Obligation Group, Series A     
(AMBAC), 5.50%, 4/15/18    2,530  2,560,664 
McLaren Health Care, Series C, 5.00%, 8/01/35  1,000  887,700 
MidMichigan Obligation Group, Series A,       
5.00%, 4/15/36    1,750  1,497,668 
Michigan State Hospital Finance Authority, Refunding RB:     
Henry Ford Health System, Series A,       
5.25%, 11/15/46    2,500  2,079,000 
Hospital, Crittenton, Series A, 5.63%, 3/01/27    2,050  1,921,055 
Hospital, Oakwood Obligation Group, Series A,       
5.00%, 7/15/25    3,260  3,003,699 
Hospital, Oakwood Obligation Group, Series A,       
5.00%, 7/15/37    630  521,665 
Hospital, Sparrow Obligated, 5.00%, 11/15/31    3,100  2,757,822 
McLaren Health Care, 5.75%, 5/15/38    4,500  4,408,560 
Trinity Health Credit, Series A, 6.25%, 12/01/28    930  969,618 
Trinity Health Credit, Series A, 6.50%, 12/01/33    1,000  1,047,950 
Trinity Health Credit, Series C, 5.38%, 12/01/23  1,000  1,004,680 
Trinity Health Credit, Series C, 5.38%, 12/01/30  3,755  3,525,983 
Trinity Health Credit, Series D, 5.00%, 8/15/34    3,100  2,754,567 
Royal Oak Hospital Finance Authority Michigan,       
Refunding RB, William Beaumont Hospital,       
8.25%, 9/01/39    1,000  1,113,510 
      47,225,765 

 

    Par   
Municipal Bonds    (000)  Value 
Michigan (concluded)       
Housing — 6.2%       
Michigan State HDA, RB:       
Deaconess Tower’ AMT (Ginnie Mae),     
5.25%, 2/20/48  $ 1,000  $ 927,390 
Series A, 4.75%, 12/01/25    4,400  4,067,140 
Series A, 6.00%, 10/01/45    6,990  6,923,805 
Series A, AMT (NPFGC), 5.30%, 10/01/37  130  122,565 
Williams Pavilion, AMT (Ginnie Mae),     
4.75%, 4/20/37    3,890  3,452,647 
      15,493,547 
State — 11.8%       
Michigan Municipal Bond Authority, RB, Local     
Government Loan Program, Group A (AMBAC),     
5.50%, 11/01/20    1,065  1,041,740 
Michigan Municipal Bond Authority, Refunding RB, Local     
Government, Charter County Wayne, Series B (AGC):     
5.00%, 11/01/14    2,400  2,625,024 
5.00%, 11/01/15    1,500  1,629,750 
5.00%, 11/01/16    500  550,765 
5.38%, 11/01/24    125  130,285 
Michigan State Building Authority, Refunding RB:     
Facilities Program, Series I, 6.25%, 10/15/38  3,900  4,086,303 
Facilities Program, Series I (AGC), 5.25%, 10/15/24  4,000  4,055,480 
Facilities Program, Series I (AGC), 5.25%, 10/15/25  2,000  2,001,500 
Facilities Program, Series I (AGC), 5.25%, 10/15/26  600  593,004 
Facilities Program, Series II (NPFGC),     
5.00%, 10/15/29    3,500  3,231,445 
Series IA (NPFGC), 5.00%, 10/15/32  2,500  2,292,150 
State of Michigan, COP (AMBAC), 5.37%, 6/01/22 (b)(c)  3,000  1,892,010 
State of Michigan, RB, GAN (AGM), 5.25%, 9/15/27  5,250  5,272,995 
      29,402,451 
Transportation — 13.3%       
Sturgis Building Authority, RB, Sturgis Hospital Project     
(NPFGC), 4.75%, 10/01/34    475  418,979 
Wayne County Airport Authority, RB, Detroit Metropolitan     
Wayne County Airport, AMT (NPFGC):     
5.25%, 12/01/25    7,525  6,947,306 
5.25%, 12/01/26    6,300  5,730,858 
5.00%, 12/01/34    9,160  7,448,637 
Wayne County Airport Authority, Refunding RB, AMT (AGC):     
5.75%, 12/01/25    4,000  3,887,000 
5.75%, 12/01/26    1,000  959,790 
5.38%, 12/01/32    8,700  7,642,254 
      33,034,824 
Utilities — 23.2%       
City of Detroit Michigan, RB:       
Second Lien, Series B (AGM), 7.00%, 7/01/36  3,000  3,308,250 
Second Lien, Series B (NPFGC), 5.00%, 7/01/34  2,420  2,109,345 
Second Lien, Series B (NPFGC), 5.00%, 7/01/13 (a)  1,550  1,697,653 
Senior Lien, Series A (AGM), 5.00%, 7/01/25  4,000  3,772,080 
Senior Lien, Series A (FGIC), 5.75%, 7/01/11 (a)  5,250  5,411,542 
Senior Lien, Series A (NPFGC), 5.00%, 7/01/34  6,900  6,140,862 
Series B (NPFGC), 5.25%, 7/01/13 (a)  11,790  12,983,384 
City of Detroit Michigan, Refunding RB:     
Second Lien, Series C (AGM), 5.00%, 7/01/29  10,570  9,379,289 
(FGIC), 6.25%, 7/01/12 (b)    525  548,331 
City of Grand Rapids Michigan, RB (NPFGC),     
5.00%, 1/01/34    11,385  11,051,989 
Michigan Municipal Bond Authority, RB, Clean Water     
Revolving-Pooled, 5.00%, 10/01/27  1,240  1,267,590 
      57,670,315 
Total Municipal Bonds in Michigan    348,662,183 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 25



Schedule of Investments (concluded) BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Guam — 1.1%     
County/City/Special District/School District — 0.5%     
Territory of Guam, RB, Section 30, Series A,     
5.63%, 12/01/29  $ 1,400  $ 1,347,220 
Utilities — 0.6%     
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37  1,565  1,405,761 
Total Municipal Bonds in Guam    2,752,981 
Puerto Rico — 6.4%     
County/City/Special District/School District — 1.9%     
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
First Sub-Series C (AGM), 5.13%, 8/01/42  5,100  4,743,357 
Housing — 0.8%     
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,     
5.13%, 12/01/27  2,000  1,987,600 
State — 2.1%     
Puerto Rico Public Buildings Authority, Refunding RB,     
Government Facilities, Series M-3 (NPFGC),     
6.00%, 7/01/27  2,100  2,117,346 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (NPFGC) (c):     
5.19%, 8/01/43  12,500  1,397,375 
5.00%, 8/01/46  20,000  1,754,400 
    5,269,121 
Transportation — 1.6%     
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series CC (AGC), 5.50%, 7/01/31  4,000  3,985,200 
Total Municipal Bonds in Puerto Rico    15,985,278 
Total Municipal Bonds — 147.6%    367,400,442 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
Michigan — 11.9%     
Corporate — 4.6%     
Wayne State University, Refunding RB, General (AGM),     
5.00%, 11/15/35  12,210  11,642,113 
County/City/Special District/School District — 2.6%     
Lakewood Public Schools Michigan, GO, School Building     
& Site (AGM), 5.00%, 5/01/37  6,470  6,428,721 
Education — 4.7%     
Portage Public Schools Michigan, GO, School Building     
& Site (AGM), 5.00%, 5/01/31  4,650  4,477,671 
Saginaw Valley State University, Refunding RB, General     
(AGM), 5.00%, 7/01/31  7,500  7,184,925 
    11,662,596 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 11.9%    29,733,430 
Total Long-Term Investments     
(Cost — $408,141,276) — 159.5%    397,133,872 
Short-Term Securities  Shares   
BIF Michigan Municipal Money Fund, 0.00% (e)(f)  9,306,299  9,306,299 
Total Short-Term Securities     
(Cost — $9,306,299) — 3.7%    9,306,299 

 

  Value 
Total Investments (Cost — $417,447,575*) — 163.2%  $406,440,171 
Other Assets Less Liabilities — 1.4%  3,435,466 
Liability for Trust Certificates, Including Interest   
Expense and Fees Payable — (6.5)%  (16,199,573) 
Preferred Shares, at Redemption Value — (58.1)%  (144,665,491) 
Net Assets Applicable to Common Shares — 100.0%  $249,010,573 


* The cost and unrealized appreciation (depreciation) of investments as of January 31,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $401,484,647 
Gross unrealized appreciation  $ 9,626,759 
Gross unrealized depreciation  (20,861,235) 
Net unrealized depreciation  $ (11,234,476) 

(a) 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.
(b) Security is collateralized by Municipal or US Treasury obligations.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) 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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(e) 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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
BIF Michigan         
Municipal         
Money Fund  1,734,583  7,571,716  9,306,299   


(f) Represents the current yield as of report date.


For Fund compliance purposes, the Fund’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or rating group indexes, and/or as defined by Fund management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in                   
Securities:         
Long-Term         
Investments1    $ 397,133,872    $ 397,133,872 
Short-Term         
Securities  $ 9,306,299      9,306,299 
Total  $ 9,306,299  $ 397,133,872    $ 406,440,171 

 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield New Jersey Quality Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey — 130.2%       
Corporate — 4.0%       
New Jersey EDA, Refunding RB, New Jersey       
American Water Co., Inc. Project, Series A, AMT,       
5.70%, 10/01/39  $ 5,000  $ 4,799,400 
County/City/Special District/School District — 16.2%     
Borough of Hopatcong New Jersey, GO, Refunding,       
Sewer (AMBAC), 4.50%, 8/01/33    750  697,770 
City of Perth Amboy New Jersey, GO, CAB (AGM),       
5.17%, 7/01/35 (a)    1,250  1,082,500 
County of Hudson New Jersey, COP, Refunding (NPFGC),     
6.25%, 12/01/16    1,000  1,144,250 
County of Middlesex New Jersey, COP, Refunding       
(NPFGC), 5.00%, 8/01/22    3,000  3,002,790 
Edgewater Borough Board of Education, GO (AGM):       
4.25%, 3/01/34    300  288,873 
4.25%, 3/01/35    300  286,482 
4.30%, 3/01/36    300  285,903 
4.30%, 3/01/37    300  286,488 
4.30%, 3/01/38    300  285,330 
Essex County Improvement Authority, Refunding RB, AMT     
(NPFGC), 4.75%, 11/01/32    1,000  829,780 
Hudson County Improvement Authority, RB:       
CAB, Series A-1 (NPFGC), 4.51%, 12/15/32 (b)    1,000  235,890 
Harrison Parking Facility Project, Series C (AGC),       
5.38%, 1/01/44    1,400  1,407,546 
Monmouth County Improvement Authority, RB,       
Governmental Loan (AMBAC):       
5.00%, 12/01/17    605  611,286 
5.00%, 12/01/18    545  549,306 
5.00%, 12/01/18 (c)    975  1,012,664 
5.00%, 12/01/19    560  563,220 
5.00%, 12/01/19 (c)    980  1,017,857 
Monmouth County Improvement Authority, Refunding RB,     
Governmental Loan (AMBAC):       
5.20%, 12/01/14    30  30,056 
5.25%, 12/01/15    100  100,156 
Morristown Parking Authority, RB (NPFGC),       
4.50%, 8/01/37    1,355  1,203,375 
New Jersey State Transit Corp., COP, Subordinate,       
Federal Transit Administration Grants, Series A (AGM),     
5.00%, 9/15/21    1,000  1,011,200 
Newark Housing Authority, Refunding RB, Newark       
Redevelopment Project (NPFGC), 4.38%, 1/01/37    3,600  3,079,764 
Salem County Improvement Authority, RB, Finlaw Street     
Office Building (AGM), 5.38%, 8/15/28    620  602,504 
      19,614,990 
Education — 26.0%       
New Jersey Educational Facilities Authority, RB:       
Montclair State University, Series A (AMBAC),       
5.00%, 7/01/21    1,600  1,646,144 
Rowan University, Series C (NPFGC),       
5.00%, 7/01/14 (c)    1,185  1,331,051 
New Jersey Educational Facilities Authority, Refunding RB:     
College of New Jersey, Series D (AGM),       
5.00%, 7/01/35    3,805  3,695,150 
Montclair State University, Series J (NPFGC),       
4.25%, 7/01/30    2,895  2,519,518 
Ramapo College, Series I (AMBAC), 4.25%, 7/01/31  1,250  1,074,825 
Ramapo College, Series I (AMBAC), 4.25%, 7/01/36  3,890  3,201,159 
Rowan University, Series B (AGC), 5.00%, 7/01/26  2,575  2,619,573 
Stevens Institute of Technology, Series A,       
5.00%, 7/01/34    1,500  1,319,385 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (continued)       
Education (concluded)       
New Jersey Educational Facilities Authority, Refunding RB     
(concluded):       
William Paterson University, Series C (AGC),       
4.75%, 7/01/34  $ 1,115  $ 1,051,066 
William Paterson University, Series E (Syncora),       
5.00%, 7/01/21    1,725  1,732,417 
New Jersey State Higher Education Assistance Authority,     
RB, Series A, AMT (AMBAC), 5.30%, 6/01/17    3,565  3,568,280 
Rutgers-State University of New Jersey, Refunding RB,     
Series F, 5.00%, 5/01/39    4,000  3,922,560 
University of Medicine & Dentistry of New Jersey, RB,       
Series A (AMBAC):       
5.50%, 1/07/18    570  582,523 
5.50%, 1/07/19    1,145  1,165,461 
5.50%, 1/07/20    1,130  1,144,634 
5.50%, 1/07/21    865  874,230 
      31,447,976 
Health — 11.6%       
New Jersey Health Care Facilities Financing Authority, RB:     
Meridian Health, Series I (AGC), 5.00%, 7/01/38  745  694,534 
Meridian Health, Series II (AGC), 5.00%, 7/01/38  1,000  932,260 
Meridian Health, Series V (AGC), 5.00%, 7/01/38  750  699,195 
South Jersey Hospital, 6.00%, 7/01/12 (c)    4,000  4,303,040 
Virtua Health (AGC), 5.50%, 7/01/38    1,000  1,008,660 
New Jersey Health Care Facilities Financing Authority,       
Refunding RB:       
Atlantic City Medical Center, 6.25%, 7/01/17 (c)  290  312,347 
Atlantic City Medical Center, 5.75%, 7/01/25 (c)  525  561,761 
Atlantic City Medical System, 6.25%, 7/01/17    325  336,664 
Atlantic City Medical System, 5.75%, 7/01/25    790  798,722 
Hackensack University Medical (AGM),       
4.63%, 1/01/30    2,315  2,043,751 
Meridian Health System Obligation Group (AGM),     
5.25%, 7/01/19    2,250  2,251,732 
      13,942,666 
Housing — 9.2%       
New Jersey State Housing & Mortgage Finance Agency, RB:     
Capital Fund Program, Series A (AGM),       
4.70%, 11/01/25    4,325  4,237,721 
Home Buyer, Series CC, AMT (NPFGC),       
5.80%, 10/01/20    2,640  2,723,820 
Series A, AMT (FGIC), 4.90%, 11/01/35    820  737,483 
Series AA, 6.50%, 10/01/38    1,075  1,157,184 
Series B (AGM), 1.10%, 5/01/12    1,150  1,148,712 
New Jersey State Housing & Mortgage Finance       
Agency, Refunding RB, S/F Housing, Series T, AMT,       
4.70%, 10/01/37    500  440,040 
Newark Housing Authority, RB, South Ward Police       
Facility (AGC):       
5.75%, 12/01/30    400  405,212 
6.75%, 12/01/38    250  274,728 
      11,124,900 
State — 37.2%       
Garden State Preservation Trust, RB (AGM):       
CAB, Series B, 5.12%, 11/01/23 (b)    6,725  3,709,981 
Election of 2005, Series A, 5.80%, 11/01/22    2,605  2,941,748 
New Jersey EDA, RB:       
CAB, Motor Vehicle Surcharge, Series R (NPFGC),       
4.95%, 7/01/21 (b)    2,325  1,306,557 
Cigarette Tax, 5.63%, 6/15/19    1,060  1,046,368 
Cigarette Tax (Radian), 5.75%, 6/15/29    785  702,222 
Cigarette Tax (Radian), 5.50%, 6/15/31    225  197,973 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 27



Schedule of Investments (continued) BlackRock MuniYield New Jersey Quality Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey (continued)       
State (concluded)       
New Jersey EDA, RB (concluded):       
Motor Vehicle Surcharge, Series A (NPFGC),       
5.25%, 7/01/25  $ 1,000  $ 997,950 
Motor Vehicle Surcharge, Series A (NPFGC),       
5.00%, 7/01/29    3,900  3,803,592 
Motor Vehicle Surcharge, Series A (NPFGC),       
5.25%, 7/01/33    8,500  8,356,690 
Motor Vehicle Surcharge, Series A (NPFGC),       
5.00%, 7/01/34    1,765  1,614,798 
School Facilities Construction, Series Z (AGC),       
6.00%, 12/15/34    1,200  1,280,364 
School Facilities, Series U (AMBAC),       
5.00%, 9/01/37    1,000  943,850 
New Jersey EDA, Refunding RB:       
New Jersey American Water Co., Inc. Project,       
Series B, AMT, 5.60%, 11/01/34    1,000  952,030 
School Facilities Construction, Series K (NPFGC),       
5.25%, 12/15/17    750  815,400 
New Jersey Sports & Exposition Authority, Refunding       
RB (NPFGC):       
5.50%, 3/01/21    1,540  1,613,627 
5.50%, 3/01/22    1,050  1,082,487 
New Jersey Transportation Trust Fund Authority, RB:       
CAB, Transportation System, Series C (AGM),       
4.85%, 12/15/32 (b)    4,750  1,120,478 
CAB, Transportation System, Series C (AMBAC),       
5.05%, 12/15/35 (b)    2,760  507,978 
Transportation System, Series A (AGC),       
5.63%, 12/15/28    780  822,775 
Transportation System, Series D (AGM),       
5.00%, 6/15/19    3,000  3,108,750 
New Jersey Transportation Trust Fund Authority,       
Refunding RB, Transportation System:       
Series A (AGM), 5.25%, 12/15/20    4,250  4,525,315 
Series B (NPFGC), 5.50%, 12/15/21    1,000  1,067,790 
State of New Jersey, COP, Equipment Lease Purchase,       
Series A, 5.25%, 6/15/27    500  492,950 
State of New Jersey, GO, Refunding, Series D (NPFGC),     
6.00%, 2/15/13    1,725  1,890,100 
      44,901,773 
Tobacco — 1.6%       
Tobacco Settlement Financing Corp. New Jersey, RB,       
7.00%, 6/01/13 (c)    1,715  1,953,111 
Transportation — 13.6%       
Delaware River Port Authority, RB, Series D (AGC),       
5.00%, 1/01/40    1,500  1,433,730 
New Jersey State Turnpike Authority, RB, Growth & Income     
Securities, Series B (AMBAC), 4.92%, 1/01/15 (b)    3,005  2,272,231 
New Jersey State Turnpike Authority, Refunding RB,       
Series A (AGM), 5.25%, 1/01/29    2,000  2,068,240 
New Jersey Transportation Trust Fund Authority, RB,       
Transportation System, Series A:       
(AGM), 5.50%, 12/15/22    150  159,871 
(AMBAC), 5.00%, 12/15/32    730  711,013 
Port Authority of New York & New Jersey, RB:       
Consolidated, 93rd Series, 6.13%, 6/01/94    1,000  1,121,950 
JFK International Air Terminal, 6.00%, 12/01/42    1,500  1,415,805 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated:       
152nd Series, AMT, 5.75%, 11/01/30    2,000  2,050,980 
155th Series, AMT (AGM), 4.25%, 12/01/32    5,000  4,210,900 
163rd Series, 5.00%, 7/15/39    1,000  958,980 
      16,403,700 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (concluded)       
Utilities — 10.8%       
Essex County Utilities Authority, Refunding RB (AGC),       
4.13%, 4/01/22  $ 1,000  $ 988,490 
Jersey City Municipal Utilities Authority, Refunding RB       
(AMBAC), 6.25%, 1/01/14    2,870  3,076,554 
New Jersey EDA, RB, New Jersey American Water Co., Inc.     
Project, Series A, AMT (AMBAC), 5.25%, 11/01/32  1,000  924,290 
New Jersey EDA, Refunding RB, United Water of       
New Jersey Inc., Series B (AMBAC), 4.50%, 11/01/25  1,000  952,210 
North Hudson Sewerage Authority, Refunding RB,       
Series A (NPFGC), 5.13%, 8/01/20    1,710  1,746,115 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
(NPFGC) (b):       
4.74%, 9/01/26    4,100  1,582,559 
4.41%, 9/01/33    2,350  535,307 
Union County Utilities Authority, Refunding RB, Senior     
Lease, Ogden Martin, Series A, AMT (AMBAC):       
5.38%, 1/03/17    1,590  1,591,065 
5.38%, 1/03/18    1,670  1,670,601 
      13,067,191 
Total Municipal Bonds in New Jersey      157,255,707 
Guam — 0.6%       
Utilities — 0.6%       
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37    735  660,214 
Puerto Rico — 16.1%       
County/City/Special District/School District — 2.7%     
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 6.00%, 8/01/42    1,000  996,910 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
First Sub-Series C (AGM), 5.13%, 8/01/42    2,380  2,213,567 
      3,210,477 
Education — 2.1%       
Puerto Rico Industrial Tourist Educational Medical       
& Environmental Control Facilities Financing Authority,     
RB, University Plaza Project, Series A (NPFGC),       
5.00%, 7/01/33    3,000  2,599,530 
Health — 3.5%       
Puerto Rico Industrial Tourist Educational Medical       
& Environmental Control Facilities Financing       
Authority, RB, Hospital De La Concepcion, Series A,       
6.13%, 11/15/30    4,220  4,241,269 
Housing — 0.8%       
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,       
5.13%, 12/01/27    1,000  993,800 
State — 3.1%       
Commonwealth of Puerto Rico, GO, Refunding, Public     
Improvement, Series C, 6.00%, 7/01/39    2,000  1,951,960 
Puerto Rico Commonwealth Infrastructure Financing       
Authority, RB, CAB, Series A (b):       
(AMBAC), 4.37%, 7/01/37    2,250  310,770 
(FGIC), 4.49%, 7/01/30    2,750  684,502 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series M-3 (NPFGC),       
6.00%, 7/01/27    850  857,021 
      3,804,253 

 

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (concluded) BlackRock MuniYield New Jersey Quality Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Transportation — 1.0%     
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series CC (AGC), 5.50%, 7/01/31  $ 1,185  $ 1,180,616 
Utilities — 2.9%     
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,   
Series A (AGC), 5.13%, 7/01/47  1,750  1,565,112 
Puerto Rico Electric Power Authority, RB:     
Series RR (CIFG), 5.00%, 7/01/28  1,000  928,500 
Series XX, 5.75%, 7/01/36  1,000  962,510 
    3,456,122 
Total Municipal Bonds in Puerto Rico    19,486,067 
Total Municipal Bonds — 146.9%    177,401,988 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
New Jersey — 6.1%     
Housing — 1.7%     
New Jersey State Housing & Mortgage Finance     
Agency, RB, Capital Fund Program, Series A (AGM),     
5.00%, 5/01/27  1,980  2,028,827 
State — 3.0%     
Garden State Preservation Trust, RB, Election of 2005,     
Series A (AGM), 5.75%, 11/01/28  3,300  3,621,981 
Transportation — 1.4%     
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  1,829  1,743,981 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 6.1%    7,394,789 
Total Long-Term Investments     
(Cost — $191,515,011) — 153.0%    184,796,777 
Short-Term Securities  Shares   
BIF New Jersey Municipal Money Fund, 0.42% (e)(f)  4,217,261  4,217,261 
Total Short-Term Securities     
(Cost — $4,217,261) — 3.5%    4,217,261 
Total Investments (Cost — $195,732,272*) — 156.5%    189,014,038 
Other Assets Less Liabilities — 0.8%    948,766 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (3.9)%    (4,687,893) 
Preferred Shares, at Redemption Value — (53.4)%    (64,478,122) 
Net Assets Applicable to Common Shares — 100.0%    $120,796,789 


* The cost and unrealized appreciation (depreciation) of investments as of January 31,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $191,024,145 
Gross unrealized appreciation  $    2,938,499 
Gross unrealized depreciation  (9,632,975) 
Net unrealized depreciation  $  (6,694,476) 


(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 reflects the current
yield as of report date.
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(c) 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.
(d) 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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(e) 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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
BIF New Jersey         
Municipal         
Money Fund  4,549,254  (331,993)  4,217,261  $ 593 


(f) Represents the current yield as of report date.

For Fund compliance purposes, the Fund’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or rating group indexes, and/or as defined by Fund management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in                   
Securities:         
Long-Term         
Investments1    $ 184,796,777    $ 184,796,777 
Short-Term         
Securities  $ 4,217,261      4,217,261 
Total  $ 4,217,261  $ 184,796,777    $ 189,014,038 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 29



Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Pennsylvania — 111.9%       
Corporate — 6.3%       
Beaver County IDA, Refunding RB, FirstEnergy, Mandatory     
Put Bonds, 3.38%, 1/01/35 (a)  $ 1,200  $ 1,155,276 
Delaware County IDA Pennsylvania, Refunding RB, Water     
Facilities, Aqua Pennsylvania Inc. Project, Series B,       
AMT (NPFGC), 5.00%, 11/01/36    2,520  2,276,820 
Northumberland County IDA, Refunding RB,       
Aqua Pennsylvania Inc. Project, AMT (NPFGC),       
5.05%, 10/01/39    6,000  5,405,160 
Pennsylvania Economic Development Financing       
Authority, RB, Waste Management Inc. Project, Series A,     
AMT, 5.10%, 10/01/27    1,200  1,116,984 
      9,954,240 
County/City/Special District/School District — 43.3%     
Chambersburg Area School District, GO (NPFGC):       
5.25%, 3/01/26    2,115  2,132,872 
5.25%, 3/01/27    2,500  2,513,025 
City of Philadelphia Pennsylvania, GO, Refunding,       
Series A (AGM), 5.25%, 12/15/32    7,000  6,684,230 
Connellsville Area School District, GO, Series B (AGM),     
5.00%, 11/15/37    1,000  940,920 
County of York Pennsylvania, GO, 5.00%, 3/01/36    400  393,800 
Delaware Valley Regional Financial Authority, RB,       
Series A (AMBAC), 5.50%, 8/01/28    2,230  2,183,438 
East Stroudsburg Area School District, GO, Series A       
(NPFGC), 7.75%, 9/01/27    2,000  2,327,100 
Erie County Conventional Center Authority, RB (NPFGC),     
5.00%, 1/15/36    8,850  8,264,307 
Marple Newtown School District, GO (AGM),       
5.00%, 6/01/31    3,500  3,442,740 
North Allegheny School District, GO, Series C (AGM),       
5.25%, 5/01/27    2,175  2,202,013 
Northeastern School District York County, GO, Series B     
(NPFGC), 5.00%, 4/01/32    1,585  1,534,613 
Philadelphia Redevelopment Authority, RB (NPFGC):       
Neighborhood Transformation, Series A,       
5.50%, 4/15/22    1,750  1,786,138 
Quality Redevelopment Neighborhood, Series B,       
AMT, 5.00%, 4/15/27    4,645  4,176,319 
Philadelphia School District, GO, Refunding, Series A       
(BHAC), 5.00%, 6/01/34    1,000  951,540 
Philadelphia School District, GO:       
Series B (FGIC), 5.63%, 8/01/12 (b)    7,500  8,064,300 
Series E, 6.00%, 9/01/38    4,800  4,923,024 
Reading School District, GO (AGM), 5.00%, 1/15/29  6,000  5,999,880 
Scranton School District Pennsylvania, GO, Series A       
(AGM), 5.00%, 7/15/38    3,500  3,248,805 
Shaler Area School District Pennsylvania, GO, CAB       
(Syncora), 4.81%, 9/01/30 (c)    6,145  1,980,595 
Township of North Londonderry Pennsylvania, GO (AGM),     
4.75%, 9/01/40    4,360  4,238,312 
York City School District, GO, Series A (Syncora),       
5.25%, 6/01/22    1,040  1,075,537 
      69,063,508 
Education — 7.5%       
Adams County IDA, Refunding RB, Gettysburg College,     
5.00%, 8/15/26    100  97,988 
Pennsylvania Higher Educational Facilities Authority,       
RB (NPFGC):       
Drexel University, Series A, 5.00%, 5/01/37    2,250  2,056,658 
Series AE, 4.75%, 6/15/32    8,845  8,120,683 
Pennsylvania Higher Educational Facilities Authority,       
Refunding RB, State System of Higher Education,       
Series AL, 5.00%, 6/15/35    1,780  1,735,820 
      12,011,149 

 

    Par   
Municipal Bonds    (000)  Value 
Pennsylvania (continued)       
Health — 13.7%       
Allegheny County Hospital Development Authority, RB,     
Health Center, UPMC Health, Series B (NPFGC),       
6.00%, 7/01/26  $ 2,000  $ 2,135,220 
County of Lehigh Pennsylvania, RB, Lehigh Valley Health     
Network, Series A (AGM), 5.00%, 7/01/33    7,995  7,376,826 
Cumberland County Municipal Authority, RB, Diakon       
Lutheran, 6.38%, 1/01/39    500  483,845 
Lycoming County Authority, Refunding RB, Susquehanna     
Health System Project, Series A, 5.75%, 7/01/39    1,160  1,040,938 
Monroe County Hospital Authority Pennsylvania,       
Refunding RB, Hospital, Pocono Medical Center,       
5.13%, 1/01/37    1,265  1,086,319 
Montgomery County Higher Education & Health Authority,     
Refunding RB, Abington Memorial Hospital, Series A,     
5.13%, 6/01/33    1,760  1,608,041 
Montgomery County IDA Pennsylvania, RB:       
Acts Retirement Life Community, Series A,       
4.50%, 11/15/36    295  218,117 
Acts Retirement Life Community, Series A-1,       
6.25%, 11/15/29    235  235,287 
New Regional Medical Center Project (FHA),       
5.38%, 8/01/38    1,600  1,565,152 
Philadelphia Hospitals & Higher Education Facilities       
Authority, Refunding RB, Presbyterian Medical Center,     
6.65%, 12/01/19 (d)    3,000  3,636,600 
Sayre Health Care Facilities Authority, Refunding RB,       
Guthrie Health, Series A, 5.88%, 12/01/31    590  590,602 
South Fork Municipal Authority, Refunding RB,       
Conemaugh Valley Memorial, Series B (AGC),       
5.38%, 7/01/35    2,000  1,860,080 
      21,837,027 
Housing — 2.9%       
Pennsylvania HFA, Refunding RB, AMT:       
S/F Mortgage, Series 92-A, 4.75%, 4/01/31    730  660,431 
Series 99A, 5.15%, 4/01/38    800  745,768 
Philadelphia New Public Housing Authority, RB, Series A     
(AGM), 5.50%, 12/01/18    3,000  3,123,780 
      4,529,979 
State — 5.2%       
Pennsylvania Turnpike Commission, RB, Series C of 2003     
Pennsylvania Turnpike (NPFGC), 5.00%, 12/01/32    3,600  3,447,540 
State Public School Building Authority, RB, CAB,       
Corry Area School District (AGM) (c):       
4.85%, 12/15/22    1,640  923,402 
4.87%, 12/15/23    1,980  1,038,450 
4.89%, 12/15/24    1,980  971,507 
4.92%, 12/15/25    1,770  813,156 
State Public School Building Authority, Refunding RB,       
Harrisburg School District Project, Series A (AGC),       
5.00%, 11/15/33    1,200  1,148,016 
      8,342,071 
Transportation — 13.9%       
City of Philadelphia Pennsylvania, RB, Series A,       
5.00%, 6/15/40    1,500  1,385,100 
Delaware River Port Authority, RB, Series D (AGC),       
5.00%, 1/01/40    1,560  1,491,079 
Pennsylvania Turnpike Commission, RB:       
Series A (AMBAC), 5.50%, 12/01/31    7,800  7,834,086 
Series A (AMBAC), 5.25%, 12/01/32    350  343,287 
Sub-Series B (AGM), 5.25%, 6/01/39    3,500  3,336,270 

 

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT JANUARY 31, 2011



Schedule of Investments (continued) BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Pennsylvania (concluded)       
Transportation (concluded)       
Philadelphia Authority for Industrial Development,       
Refunding RB, Philadelphia Airport System Project,       
Series A, AMT (NPFGC):       
5.50%, 7/01/17  $ 4,000  $ 4,091,320 
5.50%, 7/01/18    3,655  3,741,551 
      22,222,693 
Utilities — 19.1%       
Allegheny County Sanitation Authority, Refunding RB,       
Series A (NPFGC), 5.00%, 12/01/30    5,000  4,705,800 
City of Philadelphia Pennsylvania, RB:       
1998 General Ordinance, 4th Series (AGM),       
5.00%, 8/01/32    4,500  4,243,770 
Ninth Series, 5.25%, 8/01/40    1,430  1,291,605 
Series A, 5.25%, 1/01/36    700  667,261 
Series C (AGM), 5.00%, 8/01/40    3,000  2,786,430 
Delaware County IDA Pennsylvania, RB, Pennsylvania       
Suburban Water Co. Project, Series A, AMT (AMBAC),     
5.15%, 9/01/32    5,500  5,133,260 
Northampton Boro Municipal Authority, RB (NPFGC),       
5.00%, 5/15/34    935  888,063 
Pennsylvania Economic Development Financing Authority,     
RB, Philadelphia Biosolids Facility, 6.25%, 1/01/32  900  894,744 
Pennsylvania IDA, Refunding RB, Economic Development     
(AMBAC), 5.50%, 7/01/20    7,000  7,217,980 
Reading Area Water Authority Pennsylvania, RB (AGM),     
5.00%, 12/01/27    2,680  2,681,259 
      30,510,172 
Total Municipal Bonds in Pennsylvania      178,470,839 
Guam — 2.4%       
County/City/Special District/School District — 0.5%     
Territory of Guam, RB, Section 30, Series A,       
5.63%, 12/01/29    805  774,651 
Transportation — 1.4%       
Guam International Airport Authority, Refunding RB,       
General, Series C, AMT (NPFGC), 5.00%, 10/01/23  2,500  2,294,750 
Utilities — 0.5%       
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37    850  763,513 
Total Municipal Bonds in Guam      3,832,914 
Puerto Rico — 0.8%       
State — 0.8%       
Commonwealth of Puerto Rico, GO, Refunding, Public     
Improvement, Series A-4 (AGM), 5.25%, 7/01/30    1,270  1,233,817 
Total Municipal Bonds — 115.1%      183,537,570 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (e)       
Pennsylvania — 46.3%       
County/City/Special District/School District — 4.5%     
East Stroudsburg Area School District, GO, Refunding     
(AGM), 5.00%, 9/01/25    7,000  7,142,450 
Education — 1.4%       
University of Pittsburgh Pennsylvania, RB, Capital Project,     
Series B, 5.00%, 9/15/28    2,202  2,242,834 

 

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (e)  (000)  Value 
Pennsylvania (concluded)     
Health — 3.2%     
Geisinger Authority, RB, Series A:     
5.13%, 6/01/34  $ 2,500  $ 2,324,700 
5.25%, 6/01/39  3,000  2,823,120 
    5,147,820 
Housing — 1.6%     
Pennsylvania HFA, Refunding RB, Series 96-A, AMT,     
4.70%, 10/01/37  2,990  2,605,277 
State — 31.5%     
Commonwealth of Pennsylvania, GO, First Series,     
5.00%, 3/15/28  5,203  5,307,570 
Pennsylvania Turnpike Commission, RB, Series C of 2003   
Pennsylvania Turnpike (NPFGC), 5.00%, 12/01/32  10,000  9,576,500 
State Public School Building Authority, LRB, Philadelphia     
School District Project (AGM), 5.25%, 6/01/13 (b)  15,000  16,489,500 
State Public School Building Authority, Refunding RB,     
School District of Philadelphia Project, Series B (AGM),   
5.00%, 6/01/26  19,025  18,842,878 
    50,216,448 
Transportation — 4.1%     
City of Philadelphia Pennsylvania, RB, Series A, AMT     
(AGM), 5.00%, 6/15/37  7,500  6,503,475 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 46.3%    73,858,304 
Total Long-Term Investments     
(Cost — $266,481,877) — 161.4%    257,395,874 
Short-Term Securities  Shares   
BIF Pennsylvania Municipal Money Fund,     
0.37% (f)(g)  5,007,290  5,007,290 
Total Short-Term Securities     
(Cost — $5,007,290) — 3.1%    5,007,290 
Total Investments (Cost — $271,489,167*) — 164.5%    262,403,164 
Other Assets Less Liabilities — 1.2%    1,916,714 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (24.1)%    (38,467,884) 
Preferred Shares, at Redemption Value — (41.6)%    (66,355,818) 
Net Assets Applicable to Common Shares — 100.0%    $159,496,176 


* The cost and unrealized appreciation (depreciation) of investments as of January 31,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $233,038,180 
Gross unrealized appreciation  $    3,305,395 
Gross unrealized depreciation  (12,380,547) 
Net unrealized depreciation  $  (9,075,152) 


(a) Variable rate security. Rate shown is as of report date.

(b) 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.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Security is collateralized by Municipal or US Treasury obligations.
(e) 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. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 31



Schedule of Investments (concluded) BlackRock MuniYield Pennsylvania Quality Fund (MPA)

(f) 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:

  Shares Held    Shares Held   
  at July 31,  Net  at January 31,   
Affiliate  2010  Activity  2011  Income 
BIF Pennsylvania         
Municipal         
Money Fund  8,508,134  (3,500,844)  5,007,290   


(g) Represents the current yield as of report date.

For Fund compliance purposes, the Fund’s 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.
This definition may not apply for purposes of this report, which may combine such
sector sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — 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)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:                   
Investments in         
Securities:         
Long-Term         
Investments1    $ 257,395,874    $ 257,395,874 
Short-Term         
Securities  $ 5,007,290      5,007,290 
Total  $ 5,007,290  $ 257,395,874    $ 262,403,164 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.   
32  SEMI-ANNUAL REPORT  JANUARY 31, 2011 

 



Statements of Assets and Liabilities           
    BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock 
    MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
    California  New Jersey  Investment  Michigan  New Jersey  Pennsylvania 
    Quality  Quality  Quality  Quality  Quality  Quality 
    Fund, Inc.  Fund, Inc.  Fund  Fund, Inc.  Fund, Inc.  Fund 
January 31, 2011 (Unaudited)    (MUC)  (MUJ)  (MFT)  (MIY)  (MJI)  (MPA) 
Assets               
Investments at value — unaffiliated1  $ 951,242,243  $ 467,162,931  $ 174,066,596  $ 397,133,872  $ 184,796,777  $ 257,395,874 
Investments at value — affiliated2    11,973,467  8,561,022  1,555,200  9,306,299  4,217,261  5,007,290 
Interest receivable    14,332,960  4,613,301  2,200,443  4,971,419  1,678,284  2,913,319 
Investments sold receivable    2,114,064  1,310,000  1,084,066       
Income receivable — affiliated    1,246           
Prepaid expenses    37,921  18,005  9,979  20,375  8,100  13,031 
Other assets    98,347      6,687     
Total assets    979,800,248  481,665,259  178,916,284  411,438,652  190,700,422  265,329,514 
Accrued Liabilities               
Bank overdraft        514    4,789   
Investments purchased payable    7,892,150    1,508,276       
Income dividends payable — Common Shares    3,086,022  1,573,077  600,924  1,389,329  636,622  878,702 
Investment advisory fees payable    380,125  208,063  74,941  170,865  76,606  111,495 
Interest expense and fees payable    166,271  10,040  13,540  9,573  3,524  27,748 
Officer's and Directors’ fees payable    116,173  608  297  700  282  436 
Other affiliates payable    8,445  2,493  1,565  2,121  990  2,165 
Other accrued expenses payable    72,363  14,308  15,852    18,329  16,838 
Total accrued liabilities    11,721,549  1,808,589  2,215,909  1,572,588  741,142  1,037,384 
Other Liabilities               
Trust certificates3    181,854,633  13,262,930  15,525,099  16,190,000  4,684,369  38,440,136 
Total Liabilities    193,576,182  15,071,519  17,741,008  17,762,588  5,425,511  39,477,520 
Preferred Shares at Redemption Value               
$25,000 per share liquidation preference,               
plus unpaid dividends4,5    254,012,979  172,710,100  56,530,652  144,665,491  64,478,122  66,355,818 
Net Assets Applicable to Common Shareholders  $ 532,211,087  $ 293,883,640  $ 104,644,624  $ 249,010,573  $ 120,796,789  $ 159,496,176 
Net Assets Applicable to Common Shareholders Consist of             
Paid—in capital6,7  $ 585,680,722  $ 298,859,398  $ 117,993,284  $ 263,576,016  $ 124,670,648  $ 170,094,998 
Undistributed net investment income    10,740,984  6,552,943  1,944,592  4,770,243  3,166,913  2,876,228 
Accumulated net realized loss    (15,804,068)  (1,423,916)  (10,375,008)  (8,328,282)  (322,538)  (4,389,047) 
Net unrealized appreciation/depreciation    (48,406,551)  (10,104,785)  (4,918,244)  (11,007,404)  (6,718,234)  (9,086,003) 
Net Assets Applicable to Common Shareholders  $ 532,211,087  $ 293,883,640  $ 104,644,624  $ 249,010,573  $ 120,796,789  $ 159,496,176 
Net asset value per Common Share  $            13.02  $            13.82  $            12.36  $            13.68  $            13.66  $            13.89 
1 Investments at cost — unaffiliated  $ 999,648,794  $ 477,267,716  $ 178,984,840  $ 408,141,276  $ 191,515,011  $ 266,481,877 
2 Investments at cost — affiliated  $   11,973,467  $     8,561,022  $     1,555,200  $     9,306,299  $     4,217,261  $     5,007,290 
3 Represents short—term floating rate certificates               
issued by TOBs.               
4 Preferred Shares outstanding:               
Par value $0.05 per share        2,261  4,909  1,965  2,654 
Par value $0.10 per share    10,160  6,908    877  614   
5 Preferred Shares authorized    15,600  8,120  1 million  6,600  2,940  1 million 
6 Common Shares outstanding, $0.10 par value    40,874,458  21,257,794  8,463,721  18,206,301  8,841,971  11,486,303 
7 Common Shares authorized    200 million  200 million  unlimited  200 million  200 million  unlimited 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 33



Statements of Operations             
  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock 
  MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
  California  New Jersey  Investment  Michigan  New Jersey  Pennsylvania 
  Quality  Quality  Quality  Quality  Quality  Quality 
  Fund, Inc.  Fund, Inc.  Fund  Fund, Inc.  Fund, Inc.  Fund 
Six Months Ended January 31, 2011 (Unaudited)  (MUC)  (MUJ)  (MFT)  (MIY)  (MJI)  (MPA) 
Investment Income             
Interest  $ 23,183,198  $ 11,405,825  $ 4,559,464  $ 10,265,866  $ 4,680,966  $ 6,466,460 
Income — affiliated  4,097  1,305  3,056    593   
Total income  23,187,295  11,407,130  4,562,520  10,265,866  4,681,559  6,466,460 
Expenses             
Investment advisory  2,815,847  1,384,878  471,262  1,074,029  499,839  696,670 
Commissions for Preferred Shares  180,380  119,781  41,104  100,070  47,668  48,342 
Professional  91,483  71,623  32,593  55,391  34,509  32,309 
Accounting services  52,813  31,522  16,316  27,265  16,463  22,931 
Officer and Directors  39,533  16,123  6,678  14,296  7,187  10,198 
Transfer agent  31,690  29,519  17,289  27,313  16,740  25,849 
Printing  24,105  12,426  5,488  12,591  6,839  9,133 
Custodian  20,627  13,228  6,652  12,589  5,994  7,842 
Registration  6,816  4,407  4,587  4,594  4,637  4,616 
Miscellaneous  53,628  42,744  27,398  40,962  27,472  31,250 
Total expenses excluding interest expense and fees  3,316,922  1,726,251  629,367  1,369,100  667,348  889,140 
Interest expense and fees1  723,079  48,812  69,949  58,837  17,120  160,156 
Total expenses  4,040,001  1,775,063  699,316  1,427,937  684,468  1,049,296 
Less fees waived by advisor  (357,198)  (53,813)  (915)  (8,209)  (5,658)  (4,215) 
Total expenses after fees waived  3,682,803  1,721,250  698,401  1,419,728  678,810  1,045,081 
Net investment income  19,504,492  9,685,880  3,864,119  8,846,138  4,002,749  5,421,379 
Realized and Unrealized Gain (Loss)             
Net realized gain (loss) from:             
Investments  (1,099,676)  (30,899)  (271,320)  591,266  472,175  90,014 
Financial futures contracts  (140,049)           
  (1,239,725)  (30,899)  (271,320)  591,266  472,175  90,014 
Net change in unrealized appreciation/depreciation on:             
Investments  (62,291,103)  (28,862,366)  (12,605,431)  (23,284,309)  (12,298,342)  (17,184,151) 
Financial futures contracts  107,141           
  (62,183,962)  (28,862,366)  (12,605,431)  (23,284,309)  (12,298,342)  (17,184,151) 
Total realized and unrealized loss  (63,423,687)  (28,893,265)  (12,876,751)  (22,693,043)  (11,826,167)  (17,094,137) 
Dividends to Preferred Shareholders From             
Net investment income  (536,824)  (365,104)  (170,011)  (422,572)  (217,863)  (190,402) 
Net Decrease in Net Assets Applicable to             
Common Shareholders Resulting from Operations  $ (44,456,019)  $ (19,572,489)  $ (9,182,643)  $ (14,269,477)  $ (8,041,281)  $ (11,863,160) 
1 Related to TOBs.             

 

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT JANUARY 31, 2011



Statements of Changes in Net Assets         
  BlackRock MuniHoldings California  BlackRock MuniHoldings New 
  Quality Fund, Inc. (MUC)  Jersey Quality Fund, Inc. (MUJ) 
  Six Months Ended    Six Months Ended   
  January 31,  Year Ended  January 31,  Year Ended 
  2011  July 31,  2011  July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2010  (Unaudited)  2010 
Operations         
Net investment income  $ 19,504,492  $ 37,720,022  $ 9,685,880  $ 21,238,876 
Net realized gain (loss)  (1,239,725)  12,432  (30,899)  115,574 
Net change in unrealized appreciation/depreciation  (62,183,962)  50,346,834  (28,862,366)  14,444,238 
Dividends and distributions to Preferred Shareholders from:         
Net investment income  (536,824)  (1,056,149)  (365,104)  (701,553) 
Net realized gain        (30,004) 
Net increase (decrease) in net assets applicable to Common         
Shareholders resulting from operations  (44,456,019)  87,023,139  (19,572,489)  35,067,131 
Dividends and Distributions to Common Shareholders From         
Net investment income  (18,066,511)  (32,433,883)  (9,414,470)  (17,941,752) 
Net realized gain        (300,750) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (18,066,511)  (32,433,883)  (9,414,470)  (18,242,502) 
Capital Share Transactions         
Reinvestment of common dividends      189,682   
Net Assets Applicable to Common Shareholders         
Total increase (decrease) in net assets applicable to Common Shareholders  (62,522,530)  54,589,256  (28,797,277)  16,824,629 
Beginning of period  594,733,617  540,144,361  322,680,917  305,856,288 
End of period  $ 532,211,087  $ 594,733,617  $ 293,883,640  $ 322,680,917 
Undistributed net investment income  $   10,740,984  $    9,839,827  $    6,552,943  $    6,646,637 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 35



Statements of Changes in Net Assets (continued)         
  BlackRock MuniYield Investment  BlackRock MuniYield Michigan 
  Quality Fund, Inc. (MFT)  Quality Fund, Inc. (MIY) 
  Six Months Ended    Six Months Ended   
  January 31,  Year Ended  January 31,  Year Ended 
  2011  July 31,  2011  July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2010  (Unaudited)  2010 
Operations         
Net investment income  $ 3,864,119  $ 7,787,174  $ 8,846,138  $ 17,856,258 
Net realized gain (loss)  (271,320)  (253,144)  591,266  1,485,878 
Net change in unrealized appreciation/depreciation  (12,605,431)  8,538,990  (23,284,309)  15,566,856 
Dividends to Preferred Shareholders from net investment income  (170,011)  (335,411)  (422,572)  (835,377) 
Net increase (decrease) in net assets applicable to Common         
Shareholders resulting from operations  (9,182,643)  15,737,609  (14,269,477)  34,073,615 
Dividends to Common Shareholders From         
Net investment income  (3,605,083)  (6,905,867)  (8,329,383)  (16,094,370) 
Capital Share Transactions         
Reinvestment of common dividends  91,502  75,047     
Net Assets Applicable to Common Shareholders         
Total increase (decrease) in net assets applicable to Common Shareholders  (12,696,224)  8,906,789  (22,598,860)  17,979,245 
Beginning of period  117,340,848  108,434,059  271,609,433  253,630,188 
End of period  $ 104,644,624  $ 117,340,848  $ 249,010,573  $ 271,609,433 
Undistributed net investment income  $ 1,944,592  $ 1,855,567  $ 4,770,243  $ 4,760,896 

 

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT JANUARY 31, 2011



Statements of Changes in Net Assets (concluded)         
  BlackRock MuniYield New Jersey  BlackRock MuniYield Pennsylvania 
  Quality Fund, Inc. (MJI)  Quality Fund, Inc. (MPA) 
  Six Months Ended    Six Months Ended   
  January 31,  Year Ended  January 31,  Year Ended 
  2011  July 31,  2011  July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2010  (Unaudited)  2010 
Operations         
Net investment income  $ 4,002,749  $ 8,588,358  $ 5,421,379  $ 10,608,015 
Net realized gain  472,175  421,725  90,014  930,379 
Net change in unrealized appreciation/depreciation  (12,298,342)  8,014,923  (17,184,151)  10,792,131 
Dividends and distributions to Preferred Shareholders from:         
Net investment income  (217,863)  (375,004)  (190,402)  (373,148) 
Net realized gain    (93,892)     
Net increase (decrease) in net assets applicable to Common         
Shareholders resulting from operations  (8,041,281)  16,556,110  (11,863,160)  21,957,377 
Dividends and Distributions to Common Shareholders From         
Net investment income  (3,816,948)  (7,425,642)  (5,259,314)  (9,345,182) 
Net realized gain    (883,128)     
Decrease in net assets resulting from dividends and distributions to         
Common Shareholders  (3,816,948)  (8,308,770)  (5,259,314)  (9,345,182) 
Capital Share Transactions         
Reinvestment of common dividends and distributions  373,793  227,441  88,230   
Net Assets Applicable to Common Shareholders         
Total increase (decrease) in net assets applicable to Common Shareholders  (11,484,436)  8,474,781  (17,034,244)  12,612,195 
Beginning of period  132,281,225  123,806,444  176,530,420  163,918,225 
End of period  $ 120,796,789  $ 132,281,225  $ 159,496,176  $ 176,530,420 
Undistributed net investment income  $ 3,166,913  $ 3,198,975  $ 2,876,228  $ 2,904,565 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 37



Statements of Cash Flows     
  Muniholdings  MuniYield 
  California  Pennsylvania 
  Quality Fund,  Quality Fund 
Six Months Ended January 31, 2011 (Unaudited)  Inc. (MUC)  (MPA) 
Cash Used for Operating Activities     
Net decrease in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ (43,919,195)  $ (11,676,901) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:     
Increase in interest receivable  (2,478,241)  (256,153) 
Increase in other assets  (3,110)   
Increase in income receivable — affiliated  (898)   
Decrease in cash pledged as collateral for financial futures contracts  84,400   
Decrease in investment advisory fees payable  (7,963)  (8,141) 
Increase in interest expense and fees payable  53,624  2,495 
Increase in other affiliates payable  2,462  433 
Decrease in other accrued expenses payable  (75,276)  (41,027) 
Decrease in margin variation payable  (35,938)   
Increase in Officer's and Directors' fees payable  18,590  50 
Net realized and unrealized gain  63,393,889  17,097,879 
Amortization of premium and discount on investments  1,474,475  178,906 
Proceeds from sales of long-term investments  108,458,205  10,851,928 
Purchases of long-term investments  (167,861,446)  (14,341,073) 
Net proceeds from sales of short-term securities  59,297,499  3,500,844 
Cash provided by operating activities  18,401,077  5,309,240 
Cash Provided by Financing Activities     
Cash payments on trust certificates    (5,000) 
Cash dividends paid to Common Shareholders  (17,862,138)  (5,118,983) 
Cash dividends paid to Preferred Shareholders  (538,939)  (185,257) 
Cash used for financing activities  (18,401,777)  (5,309,240) 
Cash     
Net change in cash     
Cash at beginning of period     
Cash at end of period     
Cash Flow Information     
Cash paid during the period for interest and fees  $ 669,455  $ 157,661 
Noncash Activities     
Capital shares issued in reinvestment of dividends paid to Common Shareholders    $ 88,230 
A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average 
total assets.     

 

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT JANUARY 31, 2011



Financial Highlights      BlackRock MuniHoldings California Quality Fund, Inc. (MUC) 
  Six Months             
  Ended    Period         
  January 31,  Year Ended  July 1, 2009         
  2011  July 31,  to July 31,    Year Ended June 30,   
  (Unaudited)  2010  2009  2009  2008  2007  2006 
Per Share Operating Performance               
Net asset value, beginning of period  $ 14.55  $ 13.21  $ 13.05  $ 13.84  $ 14.48  $ 14.44  $ 15.40 
Net investment income1  0.48  0.92  0.08  0.90  0.96  1.01  1.05 
Net realized and unrealized gain (loss)  (1.56)  1.24  0.14  (0.89)  (0.60)  0.07  (0.85) 
Dividends to Preferred Shareholders from               
net investment income  (0.01)  (0.03)  (0.00)2  (0.15)  (0.32)  (0.31)  (0.25) 
Net increase (decrease) from investment operations  (1.09)  2.13  0.22  (0.14)  0.04  0.77  (0.05) 
Dividends to Common Shareholders from               
net investment income  (0.44)  (0.79)  (0.06)  (0.65)  (0.68)  (0.73)  (0.91) 
Net asset value, end of period  $ 13.02  $ 14.55  $ 13.21  $ 13.05  $ 13.84  $ 14.48  $ 14.44 
Market price, end of period  $ 12.71  $ 14.04  $ 12.18  $ 11.07  $ 12.24  $ 13.92  $ 13.94 
Total Investment Return3               
Based on net asset value  (7.59)%4  16.96%  1.75%4  0.21%  0.64%  5.46%  (0.29)% 
Based on market price  (6.51)%4  22.40%  10.59%4  (3.88)%  (7.41)%  5.02%  (0.98)% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses5  1.38%6  1.23%  1.34%6,7  1.59%  1.58%  1.66%  1.41% 
Total expenses after fees waived5  1.26%6  1.12%  1.19%6,7  1.40%  1.50%  1.60%  1.35% 
Total expenses after fees waived and excluding interest               
expense and fees5,8  1.01%6  0.98%  1.06%6,7  1.02%  1.14%  1.12%  1.10% 
Net investment income5  6.64%6  6.52%  6.59%6,7  7.08%  6.72%  6.81%  7.01% 
Dividends to Preferred Shareholders  0.18%6  0.18%  0.23%6  1.15%  2.22%  2.11%  1.68% 
Net investment income to Common Shareholders  6.46%6  6.34%  6.36%6,7  5.93%  4.50%  4.70%  5.33% 
Supplemental Data               
Net assets applicable to Common Shareholders,               
end of period (000)  $ 532,211  $ 594,734  $ 540,144  $ 533,256  $ 565,757  $ 592,053  $ 589,404 
Preferred Shares outstanding at $25,000 liquidation               
preference, end of period (000)  $ 254,000  $ 254,000  $ 254,000  $ 287,375  $ 287,375  $ 390,000  $ 390,000 
Portfolio turnover  11%  25%  1%  19%  43%  35%  34% 
Asset coverage per Preferred Share at $25,000               
liquidation preference, end of period  $ 77,384  $ 83,538  $ 78,166  $ 71,392  $ 74,225  $ 62,965  $ 62,795 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees waived
and before fees paid indirectly, total expenses after fees waived and paid indirectly, net investment income and net investment income to Common Shareholders would have been
1.43%, 1.28%, 1.15%, 6.50% and 6.27%, respectively.
8 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 39



Financial Highlights    BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) 
  Six Months             
  Ended             
  January 31,             
  2011      Year Ended July 31,     
  (Unaudited)  2010  2009  2008    2007  2006 
Per Share Operating Performance               
Net asset value, beginning of period  $ 15.19  $ 14.40  $ 14.35  $ 14.86  $ 14.91  $ 15.62 
Net investment income1  0.46  1.00  0.98  0.93    1.03  1.03 
Net realized and unrealized gain (loss)  (1.37)  0.67  (0.11)  (0.47)    (0.03)  (0.61) 
Dividends and distributions to Preferred Shareholders from:               
Net investment income  (0.02)  (0.03)  (0.16)  (0.31)    (0.31)  (0.26) 
Net realized gain    (0.00)2           
Net increase (decrease) from investment operations.  (0.93)  1.64  0.71  0.15    0.69  0.16 
Dividends and distributions to Common Shareholders from:               
Net investment income  (0.44)  (0.84)  (0.66)  (0.66)    (0.74)  (0.87) 
Net realized gain    (0.01)           
Total dividends and distributions to Common Shareholders  (0.44)  (0.85)  (0.66)  (0.66)    (0.74)  (0.87) 
Net asset value, end of period  $ 13.82  $ 15.19  $ 14.40  $ 14.35  $ 14.86  $ 14.91 
Market price, end of period  $ 13.15  $ 15.05  $ 13.38  $ 12.93  $ 14.40  $ 14.98 
Total Investment Return3               
Based on net asset value  (6.19)%4  11.95%  6.13%  1.35%    4.71%  1.09% 
Based on market price  (9.91)%4  19.37%  9.45%  (5.76)%    0.99%  (0.16)% 
Ratios to Average Net Assets Applicable to Common Shareholders               
Total expenses5  1.12%6  1.13%  1.30%  1.30%    1.45%  1.45% 
Total expenses after fees waived5  1.09%6  1.08%  1.21%  1.23%    1.40%  1.39% 
Total expenses after fees waived and excluding interest expense and fees5,7  1.05%6  1.05%  1.10%  1.15%    1.17%  1.15% 
Net investment income5  6.11%6  6.71%  7.04%  6.22%    6.77%  6.80% 
Dividends to Preferred Shareholders  0.23%6  0.22%  1.13%  2.11%    2.03%  1.72% 
Net investment income to Common Shareholders  5.88%6  6.49%  5.91%  4.11%    4.74%  5.08% 
Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 293,884  $ 322,681  $ 305,856  $ 304,947  $ 315,769  $ 315,649 
Preferred Shares outstanding at $25,000 liquidation preference,               
end of year (000)  $ 172,700  $ 172,700  $ 172,700  $ 176,700  $ 203,000  $ 203,000 
Portfolio turnover  7%  13%  9%  12%    17%  16% 
Asset coverage per Preferred Share at $25,000 liquidation preference,               
end of period  $ 67,544  $ 71,713  $ 69,2788  $ 68,1528  $ 63,8988  $ 63,8848 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
8 Amounts have been recalculated to conform with current period presentation.

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT JANUARY 31, 2011



Financial Highlights        BlackRock MuniYield Investment Quality Fund (MFT) 
                 
  Six Months               
  Ended    Period                         
  January 31,   Year Ended July 31,   November 1, 2007    Year Ended October 31,   
  2011      to July 31,           
  (Unaudited)  2010  2009  2008    2007  2006    2005 
Per Share Operating Performance                   
Net asset value, beginning of period  $ 13.87  $ 12.83  $ 13.42  $ 14.38  $ 14.91  $ 14.72  $ 15.22 
Net investment income1  0.46  0.92  0.94  0.71    0.95  0.97    0.98 
Net realized and unrealized gain (loss)  (1.52)  0.98  (0.70)  (0.97)    (0.49)  0.24    (0.38) 
Dividends to Preferred Shareholders from net                   
investment income  (0.02)  (0.04)  (0.15)  (0.22)    (0.31)  (0.27)    (0.17) 
Net increase (decrease) from investment operations  (1.08)  1.86  0.09  (0.48)    0.15  0.94    0.43 
Dividends to Common Shareholders from net                   
investment income  (0.43)  (0.82)  (0.68)  (0.48)    (0.68)  (0.75)    (0.90) 
Capital charges resulting from issuance of Preferred Shares                  (0.03) 
Net asset value, end of period  $ 12.36  $ 13.87  $ 12.83  $ 13.42  $ 14.38  $ 14.91  $ 14.72 
Market price, end of period  $ 12.05  $ 14.28  $ 11.80  $ 11.75  $ 12.74  $ 14.21  $ 14.18 
Total Investment Return2                   
Based on net asset value  (7.97)%3  14.99%  1.94%  (2.97)%3    1.39%  6.87%    2.72% 
Based on market price  (12.86)%3  28.72%  7.08%  (4.11)%3    (5.75)%  5.73%    0.54% 
Ratios to Average Net Assets Applicable to Common Shareholders                 
Total expenses4  1.21%5  1.19%  1.40%  1.51%5    1.54%  1.46%    1.38% 
Total expenses after fees waived4  1.21%5  1.19%  1.37%  1.49%5    1.52%  1.45%    1.38% 
Total expenses after fees waived and excluding interest                   
expense and fees4,6  1.09%5  1.09%  1.19%  1.18%5    1.20%  1.17%    1.20% 
Net investment income4  6.71%5  6.80%  7.54%  6.60%5    6.53%  6.58%    6.50% 
Dividends to Preferred Shareholders  0.30%5  0.29%  1.23%  2.07%5    2.13%  1.87%    1.13% 
Net investment income to Common Shareholders  6.41%5  6.51%  6.31%  4.53%5    4.40%  4.71%    5.37% 
Supplemental Data                   
Net assets applicable to Common Shareholders,                   
end of period (000)  $ 104,645  $ 117,341  $ 108,434  $ 113,449  $ 121,574  $ 126,042  $ 124,422 
Preferred Shares outstanding at $25,000 liquidation                   
preference, end of period (000)  $ 56,525  $ 56,525  $ 56,525  $ 62,250  $ 72,000  $ 72,000  $ 72,000 
Portfolio turnover.  10%  38%  43%  21%    26%  34%    52% 
Asset coverage per Preferred Share at $25,000                   
liquidation preference, end of period  $ 71,285  $ 76,900  $ 72,961  $ 70,569  $ 67,220  $ 68,769  $ 68,212 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 41



Financial Highlights        BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) 
                 
  Six Months               
  Ended    Period                    
   January 31,  Year Ended July 31,   November 1, 2007    Year Ended October 31,   
  2011      to July 31,           
  (Unaudited)  2010  2009  2008    2007  2006    2005 
Per Share Operating Performance                   
Net asset value, beginning of period  $ 14.92  $ 13.93  $ 14.16  $ 15.03  $ 15.45  $ 15.32  $ 15.96 
Net investment income1  0.49  0.98  1.00  0.70    1.06  1.04    1.08 
Net realized and unrealized gain (loss)  (1.25)  0.94  (0.40)  (0.82)    (0.45)  0.22    (0.54) 
Dividends to Preferred Shareholders from net                   
investment income  (0.02)  (0.05)  (0.16)  (0.23)    (0.32)  (0.29)    (0.18) 
Net increase (decrease) from investment operations  (0.78)  1.87  0.44  (0.35)    (0.29)  0.97    0.36 
Dividends to Common Shareholders from net                   
investment income  (0.46)  (0.88)  (0.67)  (0.52)    (0.71)  (0.84)    (0.98) 
Capital charges with respect to the issuance of                   
Preferred Shares                  (0.02) 
Net asset value, end of period  $ 13.68  $ 14.92  $ 13.93  $ 14.16  $ 15.03  $ 15.45  $ 15.32 
Market price, end of period  $ 12.91  $ 14.55  $ 12.25  $ 12.30  $ 13.40  $ 14.67  $ 15.31 
Total Investment Return2                   
Based on net asset value  (5.31)%3  14.31%  4.66%  (2.02)%3    2.30%  6.64%    2.24% 
Based on market price  (8.36)%3  26.76%  5.95%  (4.54)%3    (3.95)%  1.32%    6.10% 
Ratios to Average Net Assets Applicable to Common Shareholders                 
Total expenses4  1.06%5  1.07%  1.27%  1.42%5    1.55%  1.62%    1.42% 
Total expenses after fees waived4  1.06%5  1.07%  1.25%  1.40%5    1.55%  1.61%    1.42% 
Total expenses after fees waived and excluding interest                   
expense and fees4,6  1.01%5  1.03%  1.09%  1.13%5    1.12%  1.11%    1.10% 
Net investment income4  6.59%5  6.72%  7.37%  6.19%5    6.95%  6.84%    6.84% 
Dividends to Preferred Shareholders  0.31%5  0.31%  1.19%  2.05%5    2.12%  1.87%    1.13% 
Net investment income to Common Shareholders  6.28%5  6.41%  6.18%  4.14%5    4.83%  4.97%    5.71% 
Supplemental Data                   
Net assets applicable to Common Shareholders,                   
end of period (000)  $ 249,011  $ 271,609  $ 253,630  $ 257,806  $ 273,593  $ 281,350  $ 278,250 
Preferred Shares outstanding at $25,000 liquidation                   
preference, end of period (000)  $ 144,650  $ 144,650  $ 144,650  $ 144,650  $ 165,000  $ 165,000  $ 165,000 
Portfolio turnover  7%  15%  9%  21%    10%  15%    25% 
Asset coverage end of period per $1,000  $ 2,7217  $ 2,8787  $ 2,7537  $ 2,7827  $ 2,6587  $ 2,7057  $ 2,686 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
7 Asset coverage per Preferred Share at $25,000 liquidation preference for the periods ended 2011, 2010, 2009, 2008, 2007 and 2006 were $68,039, $71,945, $68,838,
$69,563, $66,461 and $67,638, respectively.

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT JANUARY 31, 2011



Financial Highlights        BlackRock MuniYield New Jersey Quality Fund, Inc. (MJI) 
                   
  Six Months                 
  Ended    Period                             
   January 31,  Year Ended July 31,   November 1,     2007      Year Ended October 31,   
  2011      to July 31,             
  (Unaudited)  2010  2009  2008    2007    2006    2005 
Per Share Operating Performance                     
Net asset value, beginning of period  $ 15.00  $ 14.07  $ 14.23  $ 15.02  $ 15.42  $ 15.07  $ 15.46 
Net investment income1  0.45  0.98  0.96  0.69    0.96    0.97    0.96 
Net realized and unrealized gain (loss)  (1.34)  0.94  (0.27)  (0.76)    (0.42)    0.36    (0.27) 
Dividends and distributions to Preferred Shareholders from:                     
Net investment income  (0.02)  (0.04)  (0.15)  (0.21)    (0.28)    (0.25)    (0.16) 
Net realized gain    (0.01)  (0.01)  (0.01)    (0.00)2                
Net increase (decrease) from investment operations  (0.91)  1.87  0.53  (0.29)    0.26    1.08    0.53 
Dividends and distributions to Common Shareholders from:                     
Net investment income  (0.43)  (0.84)  (0.67)  (0.49)    (0.65)    (0.73)    (0.92) 
Net realized gain    (0.10)  (0.02)  (0.01)    (0.01)         
Total dividends and distributions to Common Shareholders  (0.43)  (0.94)  (0.69)  (0.50)    (0.66)    (0.73)    (0.92) 
Capital charges with respect to the issuance of                     
Preferred Shares                    0.003 
Net asset value, end of period  $ 13.66  $ 15.00  $ 14.07  $ 14.23  $ 15.02  $ 15.42  $ 15.07 
Market price, end of period  $ 12.92  $ 14.92  $ 12.82  $ 12.81  $ 13.70  $ 14.96  $ 14.65 
Total Investment Return4                     
Based on net asset value  (6.15)%5  13.90%  4.94%  (1.67)%5           2.00%    7.50%    3.49% 
Based on market price  (10.76)%5  24.34%  6.22%    (2.95)%5      (4.10)%    7.28%    2.60% 
Ratios to Average Net Assets Applicable to Common Shareholders                   
Total expenses6  1.05%7  1.06%  1.22%  1.24%7    1.37%    1.59%    1.52% 
Total expenses after fees waived6  1.04%7  1.05%  1.21%  1.24%7    1.37%    1.59%    1.52% 
Total expenses after fees waived and excluding interest                     
expense and fees6,8  1.01%7  1.02%  1.11%  1.18%7    1.17%    1.15%    1.16% 
Net investment income6  6.13%7  6.64%  7.10%  6.18%7    6.30%    6.46%    6.21% 
Dividends to Preferred Shareholders  0.33%7  0.29%  1.12%  1.87%7    1.81%    1.63%    1.03% 
Net investment income to Common Shareholders  5.80%7  6.35%  5.98%  4.31%7    4.49%    4.83%    5.18% 
Supplemental Data                     
Net assets applicable to Common Shareholders,                     
end of period (000)  $ 120,797  $ 132,281  $ 123,806  $ 125,233  $ 132,174  $ 135,767  $ 132,622 
Preferred Shares outstanding at $25,000 liquidation                     
preference, end of period (000)  $ 64,475  $ 64,475  $ 64,475  $ 65,700  $ 73,500  $ 73,500  $ 73,500 
Portfolio turnover  7%  12%  8%  13%    23%    11%    29% 
Asset coverage per Preferred Share at $25,000 liquidation                     
preference, end of period  $ 71,840  $ 76,294  $ 73,008  $ 72,666  $ 69,965  $ 71,185  $ 70,110 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.
8 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2011 43



Financial Highlights        BlackRock MuniYield Pennsylvania Quality Fund (MPA) 
                 
  Six Months               
  Ended    Period                         
   January 31,  Year Ended July 31,     November 1,    2007    Year Ended October 31,   
  2011      to July 31,           
  (Unaudited)  2010  2009  2008    2007  2006    2005 
Per Share Operating Performance                   
Net asset value, beginning of period  $ 15.38  $ 14.28  $ 14.30  $ 15.49  $ 15.89  $ 15.57  $ 16.04 
Net investment income1  0.47  0.92  0.93  0.71    1.01  1.01    1.05 
Net realized and unrealized gain (loss)  (1.48)  1.02  (0.15)  (1.18)    (0.40)  0.36    (0.35) 
Dividends to Preferred Shareholders from net                   
investment income  (0.02)  (0.03)  (0.14)  (0.22)    (0.32)  (0.27)    (0.19) 
Net increase (decrease) from investment operations  (1.03)  1.91  0.64  (0.69)    0.29  1.10    0.51 
Dividends to Common Shareholders from net                   
investment income  (0.46)  (0.81)  (0.66)  (0.50)    (0.69)  (0.78)    (0.96) 
Capital charges with respect to the issuance of                   
Preferred Shares              (0.00)2      (0.02) 
Net asset value, end of period  $ 13.89  $ 15.38  $ 14.28  $ 14.30  $ 15.49  $ 15.89  $ 15.57 
Market price, end of period  $ 13.24  $ 15.26  $ 12.87  $ 12.43  $ 13.67  $ 14.60  $ 14.91 
Total Investment Return3                   
Based on net asset value  (6.76)%4  14.18%  5.88%  (4.18)%4      2.19%  7.52%    3.16% 
Based on market price  (10.43)%4  25.70%  9.78%  (5.62)%4      (1.85)%  3.16%    1.51% 
Ratios to Average Net Assets Applicable to Common Shareholders                 
Total expenses5  1.216  1.15%  1.27%  1.50%6    1.72%  1.70%    1.70% 
Total expenses after fees waived5  1.206  1.15%  1.25%  1.48%6    1.72%  1.69%    1.69% 
Total expenses after fees waived and excluding interest                   
expense and fees5,7  1.026  1.00%  1.06%  1.13%6    1.13%  1.13%    1.13% 
Net investment income5  6.246  6.17%  6.82%  6.18%6    6.44%  6.49%    6.56% 
Dividends to Preferred Shareholders  0.216  0.22%  1.00%  1.93%6    2.02%  1.76%    1.17% 
Net investment income to Common Shareholders  6.036  5.95%  5.82%  4.25%6    4.42%  4.73%    5.39% 
Supplemental Data                   
Net assets applicable to Common Shareholders,                   
end of period (000)  $ 159,496  $ 176,530  $ 163,918  $ 164,119  $ 177,807  $ 182,402  $ 178,771 
Preferred Shares outstanding at $25,000 liquidation                   
preference, end of period (000)  $ 66,350  $ 66,350  $ 66,350  $ 77,400  $ 102,000  $ 102,000  $ 102,000 
Portfolio turnover  4%  6%  18%  24%    35%  25%    42% 
Asset coverage per Preferred Share at $25,000 liquidation                   
preference, end of period  $ 85,099  $ 91,517  $ 86,765  $ 78,018  $ 68,585  $ 69,717  $ 68,827 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT JANUARY 31, 2011



Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock MuniHoldings California Quality Fund, Inc. (“MUC”), formerly
MuniHoldings California Insured Fund, Inc., BlackRock MuniHoldings
New Jersey Quality Fund, Inc. (“MUJ”), formerly BlackRock MuniHoldings
New Jersey Fund, Inc., BlackRock MuniYield Investment Quality Fund, Inc.
(“MFT”), formerly BlackRock MuniYield Insured Investment Fund, BlackRock
MuniYield Michigan Quality Fund, Inc. (“MIY”), formerly BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Quality
Fund, Inc. (“MJI”), formerly MuniYield New Jersey Insured Fund, Inc. and
BlackRock MuniYield Pennsylvania Quality Fund, Inc. (“MPA”), formerly
MuniYield Pennsylvania Insured Fund (collectively, the “Funds” or individ-
ually, as a “Fund”), are registered under the Investment Company Act of
1940, as amended (the “1940 Act”), as non-diversified, closed-end
management investment companies. MUC, MUJ, MIY and MJI are organized
as Maryland corporations. MFT and MPA are organized as Massachusetts
business trusts. The Funds' financial statements are prepared in conformity
with accounting principles generally accepted in the United States of
America ("US GAAP"), which may require management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
Funds determine, and make available for publication the net asset value
of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by
the Funds:

Valuation: The Funds fair value their financial instruments at market value
using independent dealers or pricing services under policies approved
by each Fund’s Board of Directors/Trustees (the “Board”). Municipal
investments (including commitments to purchase such investments on a
“when-issued” basis) are valued on the basis of prices provided by dealers
or pricing services. In determining the value of a particular investment,
pricing services may use certain information with respect to transactions
in such investments, quotations from dealers, pricing matrixes, market
transactions in comparable investments and information with respect to
various relationships between investments. Financial futures contracts
traded on exchanges are valued at their last sale price. Short-term
securities with remaining maturities of 60 days or less may be valued at
amortized cost, which approximates fair value. Investments in open-end
investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued in accordance with a policy approved by the Board as reflecting fair
value ("Fair Value Assets"). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which
are normally issued at a significant discount from face value and do not
provide for periodic interest payments. Zero-coupon bonds may experience
greater volatility in market value than similar maturity debt obligations
which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities:
The Funds may purchase securities on a when-issued basis and may pur-
chase or sell securities on a forward commitment basis. Settlement of such
transactions normally occurs within a month or more after the purchase or
sale commitment is made. The Funds may purchase securities under such
conditions with the intention of actually acquiring them, but may enter into
a separate agreement to sell the securities before the settlement date.
Since the value of securities purchased may fluctuate prior to settlement,
the Funds may be required to pay more at settlement than the security is
worth. In addition, the Funds are not entitled to any of the interest earned
prior to settlement. When purchasing a security on a delayed delivery basis,
the Funds assume the rights and risks of ownership of the security, includ-
ing the risk of price and yield fluctuations. In the event of default by the
counterparty, the Funds' maximum amount of loss is the unrealized
appreciation of unsettled when-issued transactions, which is shown on
the Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of TOBs. A TOB is established by a
third party sponsor forming a special purpose entity, into which one or
more funds, or an agent on behalf of the funds, transfers municipal bonds.
Other funds managed by the investment advisor may also contribute
municipal bonds to a TOB into which a Fund has contributed bonds. A TOB
typically issues two classes of beneficial interests: short-term floating rate
certificates, which are sold to third party investors, and residual certificates
(“TOB Residuals”), which are generally issued to the participating funds
that made the transfer. The TOB Residuals held by a Fund include the right
of a Fund (1) to cause the holders of a proportional share of the short-
term floating rate certificates to tender their certificates at par, including
during instances of a rise in short-term interest rates, and (2) to transfer,
within seven days, a corresponding share of the municipal bonds from the
TOB to a Fund. The TOB may also be terminated without the consent of a
Fund upon the occurrence of certain events as defined in the TOB agree-
ments. Such termination events may include the bankruptcy or default of
the municipal bond, a substantial downgrade in credit quality of the munic-
ipal bond, the inability of the TOB to obtain quarterly or annual renewal of
the liquidity support agreement, a substantial decline in market value of
the municipal bond or the inability to remarket the short-term floating rate
certificates to third party investors. During the six months ended January
31, 2011, no TOBs that the Funds participated in were
terminated without the consent of the Funds.

The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to a Fund, which typically
invests the cash in additional municipal bonds. Each Fund's transfer of
the municipal bonds to a TOB is accounted for as a secured borrowing,
therefore the municipal bonds deposited into a TOB are presented in the
Funds' Schedules of Investments and the proceeds from the issuance of

SEMI-ANNUAL REPORT JANUARY 31, 2011 45



Notes to Financial Statements (continued)

the short-term floating rate certificates are shown as trust certificates in the
Statements of Assets and Liabilities.

Interest income, including amortization and accretion of premiums and
discounts, from the underlying municipal bonds is recorded by the Funds
on an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee serv-
ices to a TOB are shown as interest expense and fees in the Statements of
Operations. The short-term floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender certifi-
cates to the TOB for redemption at par at each reset date. At January 31,
2011, the aggregate value of the underlying municipal bonds transferred to
TOBs, the related liability for trust certificates and the range of interest
rates on the liability for trust certificates were as follows:

  Underlying  Liability   
  Municipal Bonds  for Trust  Range of 
  Transferred to TOBs  Certificates  Interest Rates 
MUC  $326,430,224  $181,854,633  0.29% – 0.46% 
MUJ  $ 20,679,832  $ 13,262,930  0.29% – 0.39% 
MFT  $ 28,316,826  $ 15,525,099  0.29% – 0.44% 
MIY  $ 29,733,430  $ 16,190,000  0.27% – 0.46% 
MJI  $   7,394,789  $   4,684,369  0.29% – 0.39% 
MPA  $ 73,858,304  $ 38,440,136  0.29% – 0.49% 

 

For the six months ended January 31, 2011, the Funds' average trust
certificates outstanding and the daily weighted average interest rates,
including fees, were as follows:

  Average Trust  Daily Weighted 
  Certificates  Average 
  Outstanding  Interest Rate 
MUC  $181,854,633  0.79% 
MUJ  $ 13,262,930  0.73% 
MFT  $ 16,529,486  0.84% 
MIY  $ 16,190,000  0.72% 
MJI  $ 4,684,369  0.73% 
MPA  $ 38,444,753  0.83% 

 

Should short-term interest rates rise, the Funds' investments in TOBs may
adversely affect the Funds' net investment income and dividends to
Common Shareholders. Also, fluctuations in the market values of municipal
bonds deposited into the TOB may adversely affect the Funds' net asset
values per share.

Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that the Funds either deliver collateral or segregate assets
in connection with certain investments (e.g., financial futures contracts),
the Funds will, consistent with SEC rules and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on their books and
records cash or other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements
to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the transac-
tions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend dates. Interest income,
including amortization and accretion of premiums and discounts on debt
securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. The amount and timing of dividends and distribu-
tions are determined in accordance with federal income tax regulations,
which may differ from US GAAP. Dividends and distributions to Preferred
Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Fund's policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.

The Funds file US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds' US federal tax returns remains open for the year ended
July 31, 2010, the period ended July 31, 2009 and for each of the two
years ended June 30, 2009 for MUC, for each of the four years ended July
31, 2010 for MUJ and for each of the two years ended July 31, 2010 and
period ended July 31, 2008 and for the year ended October 31, 2007 for
MFT, MIY, MJI and MPA. The statutes of limitations on the Funds' state and
local tax returns may remain open for an additional year depending upon
the jurisdiction. Management does not believe there are any uncertain tax
positions that require recognition of a tax liability.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund's Board, non-interested Directors (“Independent Directors”) may defer
a portion of their annual complex-wide compensation. Deferred amounts
earn an approximate return as though equivalent dollar amounts had been
invested in common shares of certain other BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same
economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in certain other
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations there-under
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in common shares of certain
other BlackRock Closed-End Funds selected by the Independent Directors
in order to match its deferred compensation obligations. Investments to
cover each Fund's deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and dis-
tributions from the BlackRock Closed-End Fund investments under the plan
are included in income — affiliated in the Statements of Operations.

46 SEMI-ANNUAL REPORT JANUARY 31, 2011



Notes to Financial Statements (continued)

Other: Expenses directly related to a Fund are charged to the Fund. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods.
The Funds have an arrangement with the custodian whereby fees may be
reduced by credits earned on uninvested cash balances, which if applica-
ble are shown as fees paid indirectly in the Statements of Operations. The
custodian imposes fees on overdrawn cash balances, which can be offset
by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Funds and to economically
hedge, or protect, their exposure to certain risks such as interest rate risk.
These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavor-
able change in the market rates or values of the underlying instrument or if
the counterparty does not perform under the contract. Counterparty risk
related to exchange-traded financial futures contracts is deemed to be
minimal due to the protection against defaults provided by the exchange
on which these contracts trade.

Financial Futures Contracts: The Funds purchase or sell financial futures
contracts and options on financial futures contracts to gain exposure to,
or economically hedge against, changes in interest rates (interest rate risk.)
Financial futures contracts are agreements between the Fund and counter-
party to buy or sell a specific quantity of an underlying instrument at a
specified price and at a specified date. Depending on the terms of the
particular contract, futures contracts are settled either through physical
delivery of the underlying instrument on the settlement date or by payment
of a cash settlement amount on settlement date. Pursuant to the contract,
the Funds agree to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in value of the contract. Such receipts or pay-
ments are known as margin variation and are recorded by the Funds as
unrealized gains or losses. When the contract is closed, the Funds record
a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of financial futures transactions involves the risk of an imperfect
correlation in the movements in the price of financial futures contracts,
interest rates and the underlying assets.

Derivative Instruments Categorized by Risk Exposure:   
The Effect of Derivative Instruments in the Statement of Operations
Six Months Ended January 31, 2011

  Net Realized Loss from 
  MUC 
Interest rate contracts:   
Financial futures contracts  $ (140,049) 
  Net Change in Unrealized 
  Appreciation/Depreciation on 
  MUC 
Interest rate contracts:   
Financial futures contracts  $ 107,141 

 

For the six months ended January 31, 2011, the average quarterly balance
of outstanding derivative financial instruments was as follows:

  MUC 
Financial futures contracts:   
Average number of contracts sold  25 
Average notional value of contracts sold  $ 3,111,671 

 

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership struc-
ture, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and
Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Funds' investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services. The Manager is responsible for the management
of each Fund's portfolio and provides the necessary personnel, facilities,
equipment and certain other services necessary to the operations of each
Fund. For such services, each Fund pays the Manager a monthly fee at the
following annual rates of each Fund's average daily net assets:

MUC  0.55% 
MUJ  0.55% 
MFT  0.50% 
MIY  0.50% 
MJI  0.50% 
MPA  0.50% 

 

Average daily net assets are the average daily value of each Fund's total
assets minus the sum of its accrued liabilities.

The Manager voluntarily agreed to waive its investment advisory fees by
the amount of investment advisory fees each Fund pays to the Manager
indirectly through its investment in affiliated money market funds, however
the Manager does not waive its investment advisory fees by the amount
of investment advisory fees paid through each Fund's investment in
other affiliated investment companies, if any. This amount is shown as,
or included in, fees waived by advisor in the Statements of Operations.
For the six months ended January 31, 2011, the amounts waived were
as follows:

MUC  $24,371 
MUJ  $10,703 
MFT  $    915 
MIY  $ 8,209 
MJI  $ 5,658 
MPA  $ 4,215 

 

The Manager, for MUC and MUJ, voluntarily agreed to waive its investment
advisory fee on the proceeds of the Preferred Shares and TOBs that exceed
35% of net assets applicable to Common Shareholders. This amount is

SEMI-ANNUAL REPORT JANUARY 31, 2011 47



Notes to Financial Statements (continued)

included in fees waived by advisor in the Statements of Operations. For the
six months ended January 31, 2011 the amounts waived were as follows:

  Amount 
MUC  $332,827 
MUJ  $ 43,110 

 

The Manager entered into a sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM"), an affiliate of the Manager. The
Manager pays BIM for services it provides, a monthly fee that is a percent-
age of the investment advisory fees paid by each Fund to the Manager.

For the period August 1, 2010 through December 31, 2010, the Funds
reimbursed the Manager for certain accounting services, which are
included in accounting services in the Statements of Operations. The reim-
bursements were as follows:

MUC  $9,730 
MUJ  $1,949 
MFT  $1,828 
MIY  $1,728 
MJI  $ 828 
MPA  $2,571 

 

Effective January 1, 2011, the Funds no longer reimburse the Manager for
accounting services.

Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburse the Manager for com-
pensation paid to the Funds' Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the
six months ended January 31, 2011, were as follows:

  Purchases  Sales 
MUC  $166,658,216  $110,073,312 
MUJ  $ 33,393,203  $ 37,698,608 
MFT  $ 25,912,699  $ 18,899,959 
MIY  $ 29,220,911  $ 36,439,581 
MJI  $ 13,889,732  $ 13,163,465 
MPA  $ 11,286,773  $ 10,856,928 

 

5. Capital Loss Carryforward:

As of July 31, 2010, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates:

Expires July 31,  MUC  MFT  MIY  MPA 
2011  $ 3,015,538       
2012    $ 2,081,725  $3,875,883   
2016  2,097,897  659,619  1,689,814   
2017  8,756,104  993,919  2,031,132  $2,948,179 
2018    6,354,819    893,908 
Total  $13,869,539  $10,090,082  $7,596,829  $ 3,842,087 

 

Under the recently enacted Regulated Investment Company Modernization
Act of 2010, capital losses incurred by the Funds after July 31, 2011 will
not be subject to expiration. In addition, these losses must be utilized prior
to the losses incurred in pre-enactment taxable years.

6. Concentration, Market and Credit Risk:

MUC, MUJ, MIY, MJI and MPA invest a substantial amount of their assets in
issuers located in a single state or limited number of states. Please see the
Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which may reduce
the potential for loss due to credit risk. The market value of these bonds
may fluctuate for other reasons, including market perception of the value
of such insurance, and there is no guarantee that the insurer will meet
its obligation.

In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (issuer
credit risk). The value of securities held by the Funds may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Funds; conditions affecting the general
economy; overall market changes; local, regional or global political, social
or economic instability; and currency and interest rate and price fluctua-
tions. Similar to issuer credit risk, the Funds may be exposed to counter-
party credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its
commitments. The Funds manage counterparty credit risk by entering into
transactions only with counterparties that they believe have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Funds to market, issuer and counterparty credit risks, consist principally of
financial instruments and receivables due from counterparties. The extent
of the Funds' exposure to market, issuer and counterparty credit risks with
respect to these financial assets is generally approximated by their value
recorded in the Funds' Statements of Assets and Liabilities, less any collat-
eral held by the Funds.

MUC and MFT invest a significant portion of their assets in securities in
the County/City/Special District/School District and Utilities sectors. MUJ
and MJI invest a significant portion of their assets in securities in the State
sector. MIY invests a significant portion of its assets in securities in the
County/City/Special District/School District sector. MPA invests a signifi-
cant portion of its assets in securities in the County/City/Special
District/School District and State sectors.

Changes in economic conditions affecting the County/City/Special
District/School District, State and Utilities sectors would have a greater
impact on the Funds and could affect the value, income and/or liquidity of
positions in such securities.

7. Capital Share Transactions:

MFT and MPA are authorized to issue an unlimited number of Common
Shares, par value $0.10 per share together with 1 million Preferred Shares
of beneficial interest, par value is $0.05 per share. Each Fund’s Board is
authorized, however, to reclassify any unissued shares without approval of
Common Shareholders.

48 SEMI-ANNUAL REPORT JANUARY 31, 2011



Notes to Financial Statements (continued)

MUC, MUJ, MIY, and MJI are authorized to issue 200 million shares, includ-
ing Preferred Shares, par value is $0.10 per share or $0.05 per share, all
of which were initially classified as Common Shares. Each Fund’s Board is
authorized, however, to reclassify any unissued shares without approval of
Common Shareholders.

Common Shares

Shares issued and outstanding remained constant for MUC and MIY during
the six months ended January 31, 2011 and the year ended July 31,
2010, respectively.

For MUJ, shares issued and outstanding increased by 12,381 as a result
of reinvestment of dividends for the six months ended January 31, 2011
and remained constant during the year ended July 31, 2010.

For MFT, shares issued and outstanding increased by 6,451 for the six
months ended January 31, 2011 and increased by 5,456 as a result of
reinvestment of dividends during the year ended July 31, 2010.

For MJI, shares issued and outstanding increased by 24,556 for the six
months ended January 31, 2011 and increased by 15,316 as a result of
reinvestment of dividends during the year ended July 31, 2010.

For MPA, shares issued and outstanding increased by 5,736 as a result of
reinvestment of dividends for the six months ended January 31, 2011 and
remained constant during the year ended July 31, 2010.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at their liquidation preference
per share plus any accumulated and unpaid dividends whether or not
declared. The Preferred Shares are also subject to mandatory redemption
at their liquidation preference plus any accumulated and unpaid dividends,
whether or not declared, if certain requirements relating to the composition
of the assets and liabilities of a Fund, as set forth in each Fund's Articles
of Supplementary (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Fund may effect repurchases of its
Preferred Shares at prices below their liquidation preference as agreed
upon by the Fund and seller. Each Fund also may redeem its Preferred
Shares from time to time as provided in the applicable Governing
Instrument. Each Fund intends to effect such redemptions and/or repur-
chases to the extent necessary to maintain applicable asset coverage
requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of
Common Shares (one vote per share) and will vote together with holders of
Common Shares (one vote per share) as a single class. However, the hold-
ers of Preferred Shares, voting as a separate class, are also entitled to
elect two Directors for each Fund. In addition, the 1940 Act requires that
along with approval by shareholders that might otherwise be required, the
approval of the holders of a majority of any outstanding Preferred Shares,
voting separately as a class would be required to (a) adopt any plan of

reorganization that would adversely affect the Preferred Shares, (b) change
a Fund's sub-classification as a closed-end investment company or change
its fundamental investment restrictions or (c) change its business so as to
cease to be an investment company.

The Funds had the following series of Preferred Shares outstanding,
effective yields and reset frequency as of January 31, 2011:

        Reset 
    Preferred  Effective Frequency 
  Series  Shares  Yield  Days 
MUC  A  1,2511  0.41%  7 
  B  2,5271  0.44%  7 
  C  2,0841  0.44%  7 
  D  1,9281  0.44%  7 
  E  2,3701  0.44%  7 
MUJ  A  1,1571  0.41%  7 
  B  1,1571  0.44%  7 
  C  2,0421  0.44%  7 
  D  1,5991  0.44%  7 
  E  9531  0.44%  7 
MFT  A  1,8841  0.41%  7 
  B  3772  1.50%  7 
MIY  A  1,7531  0.44%  7 
  B  1,7531  0.44%  7 
  C  1,4031  0.44%  7 
  D  8772  1.47%  7 
MJI  A  1,9651  0.44%  7 
  B  6142  1.50%  7 
MPA  A  1,0411  0.41%  7 
  B  1,2491  0.44%  7 
  C  3642  1.50%  7 

1 The maximum applicable rate on this series of Preferred Shares is the higher of
110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.
2 The maximum applicable rate on this series of Preferred Shares is the higher of
110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day Preferred Shares are cumulative at a rate, which is
reset every seven days, based on the results of an auction. If the Preferred
Shares fail to clear the auction on an auction date, each Fund is required
to pay the maximum applicable rate on the Preferred Shares to holders of
such shares for successive dividend periods until such time as the shares
are successfully auctioned. The maximum applicable rate on all series of
Preferred Shares is the higher of 110% of the AA commercial paper rate or
100% of 90% of the Kenny S&P 30-day High Grade Index divided by 1.00
minus the marginal tax rate. The low, high and average dividend rates on
the Preferred Shares for each Fund for the six months ended January 31,
2011 were as follows:

SEMI-ANNUAL REPORT JANUARY 31, 2011 49



Notes to Financial Statements (concluded)

  Series  Low  High  Average 
MUC  A  0.37%  0.50%  0.42% 
  B  0.37%  0.50%  0.42% 
  C  0.37%  0.50%  0.42% 
  D  0.37%  0.50%  0.42% 
  E  0.37%  0.50%  0.42% 
MUJ  A  0.37%  0.50%  0.42% 
  B  0.37%  0.50%  0.42% 
  C  0.37%  0.50%  0.42% 
  D  0.37%  0.50%  0.42% 
  E  0.37%  0.50%  0.42% 
MFT  A  0.37%  0.50%  0.42% 
  B  1.43%  1.56%  1.48% 
MIY  A  0.37%  0.50%  0.42% 
  B  0.37%  0.50%  0.42% 
  C  0.37%  0.50%  0.42% 
  D  0.37%  0.50%  0.42% 
MJI  A  0.37%  0.50%  0.42% 
  B  1.43%  1.56%  1.48% 
MPA  A  0.37%  0.50%  0.42% 
  B  0.37%  0.50%  0.42% 
  C  1.43%  1.56%  1.48% 

 

Since February 13, 2008, the Preferred Shares of the Funds failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 0.37% to 1.56%
for the six months ended January 31, 2011. A failed auction is not an
event of default for the Funds but it has a negative impact on the liquidity
of Preferred Shares. A failed auction occurs when there are more sellers of
a Fund's auction rate Preferred Shares than buyers. A successful auction
for the Funds' Preferred Shares may not occur for some time, if ever, and
even if liquidity does resume, Preferred Shareholders may not have the
ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to
the outstanding Preferred Shares is less than 200%.

The Funds pay commissions of 0.15% on the aggregate principal amount
of all shares that fail to clear their auctions and 0.25% on the aggregate
principal amount of all shares that successfully clear their auctions.
Certain broker dealers have individually agreed to reduce commissions
for failed auctions.

Preferred Shares issued and outstanding remained constant for the six
months ended January 31, 2011 for all Funds.

During the period, MIY and MPA entered into a Fee Agreement (the
“Agreement”) with a financial institution in relation to the potential refinanc-
ing of Preferred Shares. Pursuant to the terms of the Agreement, effective
February 1, 2011 MIY and MPA will pay a liquidity fee, through the earlier
of the date of the potential refinancing or July 1, 2011, at an annual rate
of 0.50% of the potential refinancing amounts.

8. Restatement Information:

During the year ended October 31, 2006 MIY determined that the criteria
for sale accounting under US GAAP has not been met for certain transfers
of municipal bonds related to investments in TOB Residuals, and that these
transfers should have been accounted for as secured borrowings rather
than as sales. As a result, certain financial highlights for the year ended
October 31, 2005 for MIY have been restated to give effect to recording
the transfers of the municipal bonds as secured borrowings, including
recording interest on the bonds as interest income and interest on the
secured borrowings as interest expense.

Financial Highlights for MIY  Previously   
Year Ended October 31, 2005  Reported  Restated 
Total expenses1  1.10%  1.42% 
Total expenses after fees waived1  1.10%  1.42% 
Portfolio turnover  30.16%  25% 
1 Do not reflect the effect of dividends to Preferred Shareholders.   

 

9. Subsequent Events:

Management's evaluation of the impact of all subsequent events on the
Funds' financial statements was completed through the date the financial
statements were issued and the following items were noted:

Each Fund paid a net investment income dividend on March 1, 2011 to
Common Shareholders of record February 15, 2011 as follows:

  Common Dividend Per Share 
MUC  $0.0755 
MUJ  $0.0740 
MFT  $0.0710 
MIY  $0.0765 
MJI  $0.0720 
MPA  $0.0765 

 

Each Fund paid a net investment income dividend on March 31, 2011 to
Common Shareholders of record March 15, 2011 as follows:

  Common Dividend Per Share 
MUC  $0.0765 
MUJ  $0.0740 
MFT  $0.0710 
MIY  $0.0765 
MJI  $0.0720 
MPA  $0.0765 

 

The dividends declared on Preferred Shares for the period February 1,
2011 to February 28, 2011 were as follows:

    Dividends 
  Series  Declared 
MUC  A  $ 2,555 
  B  $ 5,109 
  C  $ 2,261 
  D  $ 2,714 
  E  $ 4,149 
MUJ  A  $ 2,363 
  B  $ 1,255 
  C  $ 3,575 
  D  $ 2,251 
  E  $ 1,927 
MFT  A  $ 3,848 
  B  $ 1,903 
MIY  A  $ 3,069 
  B  $ 3,544 
  C  $ 1,975 
  D  $ 6,257 
MJI  A  $ 3,973 
  B  $ 2,456 
MPA  A  $ 8,361 
  B  $ 9,947 
  C  $10,296 

 

50 SEMI-ANNUAL REPORT JANUARY 31, 2011



Officers and Directors

Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee
and Director
Richard S. Davis, Fund President1 and Director
Frank J. Fabozzi, Director and Member of the Audit Committee
Kathleen F. Feldstein, Director
James T. Flynn, Director and Member of the Audit Committee
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director and Member of the Audit Committee
Anne Ackerley, Fund President2 and Chief Executive Officer
Brendan Kyne, Vice President
Brian Schmidt, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
Ira Shapiro, Secretary
1 Fund President for MFT and MPA
2 Fund President for MUC, MUJ, MIY and MJI

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial Management, Inc.
New York, NY 10055

Custodians
State Street Bank and Trust Company3
Boston, MA 02111

The Bank of New York Mellon4
New York, NY 10286

Transfer Agent
Common Shares
Computershare Trust Company, N.A.3
Providence, RI 02940

BNY Mellon Shareowner Services4
Jersey City, NJ 07310

Auction Agent
Preferred Shares
BNY Mellon Shareowner Services
Jersey City, NJ 07310

Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
3 For MPA
4 For MUC, MUJ, MFT, MIY and MJI

Effective February 11, 2011, John M. Perlowski became President and Chief Executive
Officer of the Funds.

Effective November 10, 2010, Ira Shapiro became Secretary of the Funds.

SEMI-ANNUAL REPORT JANUARY 31, 2011 51



Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on September 2, 2010 for shareholders of record on July 6, 2010, to elect director nominees for
each Fund.
Due to a lack of quorum of Preferred Shares, action on the proposal regarding the Preferred Shares nominees' election for MFT,
MIY, MJI, MPA and MUC was
subsequently adjourned to October 5, 2010; and action on the proposal regarding Preferred Shares nominees'
election for MFT and MPA was additionally
adjourned to November 2, 2010. There were no broker non-votes with regard to any of the Funds.

  Richard E. Cavanagh    Richard S. Davis    Frank J. Fabozzi 
    Votes      Votes      Votes   
  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain 
MUC  33,365,538  1,778,962  0  33,403,157  1,741,343  0  1,895  61  3,596 
MUJ  18,723,497  433,592  0  18,687,233  469,856  0  1,339  988  0 
MFT¹  7,047,589  419,540  0  7,041,016  426,113  0  698  16  0 
MIY  15,265,979  569,280  0  15,290,454  544,805  0  1,616  23  569 
MJI  7,456,535  200,773  0  7,458,111  199,197  0  381  120  424 
MPA¹  10,499,533  247,006  0  10,486,280  260,259  0  586  10  0 
  Kathleen F. Feldstein    James T. Flynn      Henry Gabbay 
    Votes      Votes      Votes   
  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain 
MUC  33,271,028  1,873,472  0  33,386,787  1,757,713  0  33,401,943  1,742,557  0 
MUJ  18,544,214  612,875  0  18,729,957  427,132  0  18,744,553  412,536  0 
MFT  7,026,724  440,405  0  7,044,589  422,540  0  7,047,589  419,540  0 
MIY  15,213,327  621,932  0  15,225,773  609,486  0  15,249,609  585,650  0 
MJI  7,416,299  241,009  0  7,522,210  135,098  0  7,457,310  199,998  0 
MPA  10,481,819  264,720  0  10,486,239  260,300  0  10,489,591  256,948  0 
    Jerrold B. Harris    R. Glenn Hubbard    W. Carl Kester 
    Votes      Votes      Votes   
  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain  Votes For  Withheld  Abstain 
MUC  33,298,703  1,845,797  0  33,352,559  1,791,941  0  1,895  61  3,596 
MUJ  18,721,239  435,850  0  18,621,695  535,394  0  1,341  1,335  0 
MFT¹  7,039,032  428,097  0  7,047,589  419,540  0  698  16  0 
MIY  15,227,534  607,725  0  15,263,244  572,015  0  1,616  23  569 
MJI  7,459,685  197,623  0  7,456,310  200,998  0  381  120  424 
MPA¹  10,486,202  260,337  0  10,491,773  254,766  0  586  10  0 
    Karen P. Robards             
    Votes               
  Votes For  Withheld  Abstain             
MUC  33,246,475  1,898,025  0             
MUJ  18,630,372  526,717  0             
MFT  7,047,589  419,540  0             
MIY  15,275,535  559,724  0             
MJI  7,432,662  224,646  0             
MPA  10,503,429  243,110  0             
1 Due to the lack of a quorum of Preferred Shares, MFT and MPA were unable to act on the election of the two directors reserved for election solely by the Preferred Shareholders for 
the Funds. Accordingly, Frank J. Fabozzi and W. Carl Kester will remain in office and continue to serve as directors for the Funds.         

 

52 SEMI-ANNUAL REPORT JANUARY 31, 2011



Additional Information (continued)

Dividend Policy

The Funds’ dividend policy is to distribute all or a portion of their net
investment income to its shareholders on a monthly basis. In order to pro-
vide shareholders with a more stable level of dividend distributions, the
Trusts may at times pay out less than the entire amount of net investment
income earned in any particular month and may at times in any particular
month pay out such accumulated but undistributed income in addition to
net investment income earned in that month. As a result, the dividends
paid by the Trusts for any particular month may be more or less than the
amount of net investment income earned by the Funds during such month.
The Funds’ current accumulated but undistributed net investment income,
if any, is disclosed in the Statements of Assets and Liabilities, which com-
prises part of the financial information included in this report.

General Information

On June 10, 2010, BlackRock Advisors, LLC, the Funds’ investment advisor
(the “Manager”), announced that MUJ and MIY each received a demand
letter from a law firm on behalf of Common Shareholders of MUJ and MIY.
The demand letters allege that the Manager and officers and Boards of
Directors (the “Boards”) of MUJ and MIY breached their fiduciary duties
by redeeming at par certain of MUJ and MIY’s Preferred Shares, and
demanded that the Boards take action to remedy those alleged breaches.
In response to the demand letter, the Boards established a Demand
Review Committee (the “Committee”) of the Independent Directors to inves
tigate the claims made in the demand letters with the assistance of inde-
pendent counsel. Based upon its investigation, the Committee
recommended that the Boards reject the demand specified in the demand
letters. After reviewing the findings of the Committee, the Board for each
Fund unanimously adopted the Committee’s recommendation and unani-
mously voted to reject the demand.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and is intended to reduce expenses and eliminate
duplicate mailings of shareholder documents. Mailings of your shareholder
documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be
combined with those for other members of your household, please
call (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room in
Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. Each Fund’s Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is avail-
able (1) without charge, upon request, by calling (800) 441-7762;
(2) at http://www.blackrock.com; and (3) on the SEC’s website
at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolios during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 441-7762 and
(2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on
a monthly basis on its website in the “Closed-end Funds” section of
http://www.blackrock.com. Investors and others are advised to periodically
check the website for updated performance information and the release of
other material information about the Funds.

SEMI-ANNUAL REPORT JANUARY 31, 2011 53



Additional Information (continued)

Board Approvals

On September 1, 2010, the Board of Directors (the “Boards”) of MUC,
MUJ, MFT, MIY, MJI, and MPA (the “Funds”) approved changes to certain
investment policies of the Funds.

Historically, under normal market conditions, each Fund has been required
to invest at least 80% of its assets in municipal bonds either (i) insured
under an insurance policy purchased by the Fund or (ii) insured under an
insurance policy obtained by the issuer of the municipal bond or any other
party. In September 2008, the Funds adopted an amended investment pol-
icy of purchasing only municipal bonds insured by insurance providers with
claims-paying abilities rated investment grade at the time of investment
(the “Insurance Investment Policy”).

Following the onset of the credit and liquidity crises, the claims-paying abil-
ity rating of most of the municipal bond insurance providers was lowered
by the rating agencies. These downgrades called into question the long-
term viability of the municipal bond insurance market, which had the
potential to severely limit the ability of the Manager to manage the Funds
under the Insurance Investment Policy.

As a result, on September 1, 2010, the Manager recommended, and the
Boards approved, the removal of the Insurance Investment Policy. As a
result of this investment policy change, the Funds are not required to dis-
pose of assets currently held within the Funds. The Funds will maintain,
and have no current intention to amend, their investment policy of, under
normal market conditions, generally investing in municipal obligations rated
investment grade at the time of investment.

As each Fund increases the amount of its assets that are invested in
municipal obligations that are not insured, the Fund’s shareholders will be
exposed to the risk of the failure of such securities’ issuers to pay interest
and repay principal and will not have the benefit of protection provided
under municipal bond insurance policies. As a result, shareholders will be
more dependent on the analytical ability of the Manager to evaluate the
credit quality of issuers of municipal obligations in which the Fund invests.
The Boards believe that the amended investment policy is in the best inter-
ests of each Fund and its shareholders because it believes that the poten-
tial benefits from increased flexibility outweigh the potential increase in risk
from the lack of insurance policies provided by weakened insurance
providers. Of course, the new investment policy cannot assure that each
Fund will achieve its investment objective.

As disclosed in each Fund’s prospectus, each Fund is required to provide
shareholders 60 days notice of a change to the Insurance Investment
Policy. Accordingly, a notice describing the changes discussed above was
mailed to shareholders of record as of September 1, 2010.The new invest-
ment policy took effect on November 9, 2010. The Manager has been grad-
ually repositioning each Fund’s portfolios over time, and during such
period, each Fund may continue to hold a substantial portion of its assets
in insured municipal bonds. At this time, the repositioning of each Fund’s
portfolio is still taking place, and the Funds will continue to be subject to
risks associated with investing a substantial portion of their assets in
insured municipal bonds until the repositioning is complete. No action is
required by shareholders of the Funds in connection with this change.

In connection with this change in non-fundamental policy, each of the
Funds underwent a name change to reflect its new portfolio characteristics.

Each Fund continues to trade on the New York Stock Exchange under its
current ticker symbol.

The approved changes did not alter any Fund’s investment objective.

54 SEMI-ANNUAL REPORT JANUARY 31, 2011



Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a consumer
reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access
to non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed
to protect the non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.

SEMI-ANNUAL REPORT JANUARY 31, 2011 55



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be

considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common

Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk

that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed

auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.




Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable to this semi-annual report

Item 8 – Portfolio Managers of Closed-End Management Investment Companies –
(a) Not Applicable to this semi-annual report
(b) As of the date of this filing, there have been no changes to any of the portfolio managers
identified in the most recent annual report on Form N-CSR

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material
changes to these procedures.

Item 11 – Controls and Procedures

(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.

(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 second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – 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 MuniHoldings New Jersey Quality Fund, Inc.

By: /S/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings New Jersey Quality Fund, Inc.

Date: April 4, 2011

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/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings New Jersey Quality Fund, Inc.

Date: April 4, 2011

By: /S/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings New Jersey Quality Fund, Inc.

Date: April 4, 2011