UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act File number 811-6660
Name of Fund: MuniYield Quality Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniYield Quality Fund, Inc., 800 Scudders Mill Road, Plainsboro,
NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/2006
Date of reporting period: 11/01/05 - 01/31/06
Item 1 - Schedule of Investments
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
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Alaska - 0.5% $ 2,100 Alaska State International Airports Revenue Bonds, Series B, 5.75% due 10/01/2019 (a) $ 2,330
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Arizona - 0.6% 2,345 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB,
Series 511X, 7.72% due 7/01/2014 (a)(i) 2,755
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California - 22.0% 4,150 Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue
Refunding Bonds, Subordinate Lien, Series A, 5.45%** due 10/01/2025 (a) 3,163
1,250 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (f) 1,285
1,400 California State Department of Water Resources, Power Supply Revenue Bonds, Series A,
5.375% due 5/01/2012 (h) 1,553
1,000 California State Department of Water Resources, Power Supply Revenue Bonds, Series A,
5.375% due 5/01/2012 (g)(h) 1,109
4,450 California State, GO, Refunding, 5.25% due 9/01/2010 (h) 4,776
335 California State, GO, Refunding, 5.25% due 9/01/2026 353
4,100 California State, GO, Refunding, 5.25% due 2/01/2030 (g) 4,343
6,000 California State, GO, Refunding, 5.25% due 2/01/2030 (b) 6,373
2,850 California State, GO, Refunding, ROLS, Series II-R-272, 7.346% due 2/01/2033 (i)(j) 3,156
3,300 California State, Various Purpose, GO, 5.50% due 4/01/2028 3,627
2,500 California State, Various Purpose, GO, 5.25% due 11/01/2029 2,658
3,200 California State, Various Purpose, GO, 5.50% due 11/01/2033 3,489
1,200 Chino Valley, California, Unified School District, GO (Election of 2002), Series C,
5.25% due 8/01/2030 (g) 1,292
3,525 Gilroy, California, Unified School District, GO, 5% due 8/01/2027 (d) 3,673
5,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, RIB, Series RR II R 285X, 7.853% due 6/01/2043 (b)(i) 6,110
7,080 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, RIB, Series RR II R 287X, 8.106% due 6/01/2038 (i)(k) 8,765
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Portfolio
Abbreviations
To simplify the listings of MuniYield Quality Fund, Inc.'s portfolio holdings in
the Schedule of Investments, we have abbreviated the names of many of the
securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
ROLS Reset Option Long Securities
S/F Single-Family
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 1,600 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (b)(h) $ 1,778
10,650 Los Angeles, California, Unified School District, GO, Series A, 5% due 1/01/2028 (g) 11,114
2,000 Mount Diablo, California, Unified School District, GO (Election of 2002), 5%
due 7/01/2027 (d) 2,083
2,000 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125% due 6/15/2033 (a) 2,068
1,335 San Diego, California, Community College District, GO (Election of 2002), 5%
due 5/01/2030 (f) 1,395
9,000 San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP,
Series A, 5% due 5/01/2032 (g) 9,266
10,000 San Francisco, California, City and County, COP (San Bruno Jail Number 3), 5.25%
due 10/01/2033 (a) 10,526
1,400 Santa Monica, California, Community College District, GO (Election of 2002),
Refunding, Series C, 5% due 8/01/2029 (g) 1,464
1,950 Tamalpais, California, Union High School District, GO (Election of 2001), 5%
due 8/01/2028 (f) 2,028
1,700 University of California, Limited Project Revenue Bonds, Series B, 5%
due 5/15/2033 (f) 1,763
2,100 University of California Revenue Bonds (Multiple Purpose Projects), Series Q, 5%
due 9/01/2034 (f) 2,169
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Colorado - 4.2% 1,650 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (c) 1,791
1,600 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2027 (j) 1,694
1,000 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2033 (j) 1,050
1,095 Colorado Housing and Finance Authority, Revenue Refunding Bonds, AMT, Series C-2,
7.25% due 10/01/2031 (a) 1,117
1,265 Colorado Housing and Finance Authority, Revenue Refunding Bonds (S/F Program), AMT,
Series B-2, 6.80% due 2/01/2031 (g) 1,314
9,000 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue Refunding
Bonds, Series B, 5.485%** due 9/01/2029 (g) 2,658
11,125 Northwest Parkway, Colorado, Public Highway Authority, Capital Appreciation Revenue
Bonds, Senior Convertible, Series C, 5.345%** due 6/15/2025 (f) 9,553
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District of 2,500 District of Columbia, Revenue Refunding Bonds (Catholic University of America
Columbia - 0.6% Project), 5.625% due 10/01/2029 (a) 2,674
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Florida - 1.7% 2,240 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue
Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (j) 2,402
5,200 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125%
due 1/01/2032 (d) 5,441
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Georgia - 2.8% 3,935 Atlanta, Georgia, Development Authority, Student Housing Revenue Bonds (Georgia State
University), 5% due 9/01/2035 (b) 4,065
3,220 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (f) 3,430
4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power
Corporation-Scherer), Series A, 6.80% due 1/01/2011 5,402
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Hawaii - 0.5% 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (f) 2,167
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Illinois - 21.7% 5,000 Chicago, Illinois, Board of Education, GO, RIB, Series 467, 8.22%
due 12/01/2027 (a)(i) 5,619
5,000 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities), 5.125%
due 1/01/2028 (g) 5,153
2,500 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities), 5.372%**
due 1/01/2029 (g) 2,673
3,400 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT,
Series B-2, 5.75% due 1/01/2023 (f) 3,732
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 4,000 Chicago, Illinois, O'Hare International Airport Revenue Bonds, 3rd Lien, AMT,
Series B-2, 5.75% due 1/01/2024 (f) $ 4,385
3,300 Chicago, Illinois, O'Hare International Airport, Revenue Bonds, 3rd Lien, AMT,
Series B-2, 6% due 1/01/2029 (b) 3,664
2,665 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, 3rd Lien,
AMT, Series A-2, 5.75% due 1/01/2021 (f) 2,933
6,835 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, DRIVERS,
AMT, Series 250, 8.129% due 1/01/2021 (g)(i) 7,890
2,500 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, DRIVERS,
AMT, Series 844Z, 7.624% due 7/01/2010 (g)(i) 2,795
6,250 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, RIB, AMT,
Series 994X, 7.43% due 1/01/2032 (g)(i) 6,796
6,200 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(h) 6,722
2,130 Illinois Development Finance Authority Revenue Bonds (Presbyterian Home Lake
Project), Series B, 6.25% due 9/01/2017 (f) 2,202
28,525 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5.212%**
due 6/15/2030 (a) 24,543
5,500 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5%
due 6/15/2032 (a) 5,660
3,750 Illinois Student Assistance Commission, Student Loan Revenue Refunding Bonds, AMT,
Sub-Series CC, 6.875% due 3/01/2015 3,757
7,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), 5.50% due 12/15/2024 (d) 7,519
3,500 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75%
due 6/15/2023 (g) 3,892
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Indiana - 4.4% 7,500 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (d) 7,994
6,470 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds
(Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2028 (g) 6,754
5,055 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds
(Indianapolis Airport Authority Project), AMT, Series B, 5.25% due 1/01/2030 (g) 5,261
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Louisiana - 5.5% 8,500 Louisiana Local Government, Environmental Facilities, Community Development Authority
Revenue Bonds (Capital Projects and Equipment Acquisition), Series A, 6.30%
due 7/01/2030 (a) 9,361
4,675 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31%** due 12/01/2027 (a) 1,506
6,800 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5.25% due 7/15/2028 (a) 7,129
5,000 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5% due 7/15/2033 (a) 5,087
1,900 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital
Revenue Bonds (Terrebonne General Medical Center Project), 5.50% due 4/01/2033 (a) 2,049
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Maryland - 1.3% 5,615 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A, 5.25%
due 9/01/2039 (b) 6,000
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Massachusetts - 13.5% 3,730 Massachusetts Bay, Massachusetts, Transportation Authority, General Transportation
System Revenue Refunding Bonds, Series A, 7% due 3/01/2011 (g) 4,308
3,550 Massachusetts Bay, Massachusetts, Transportation Authority, General Transportation
System Revenue Refunding Bonds, Series A, 7% due 3/01/2014 (g) 4,256
2,220 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2032 2,286
2,000 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds, Senior
Series A, 5% due 7/01/2035 2,066
900 Massachusetts Bay Transportation Authority, Special Assessment Revenue Refunding
Bonds, Series A, 5% due 7/01/2031 940
3,400 Massachusetts State, Consolidated Loan, GO, Series C, 5% due 9/01/2025 3,582
5,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C, 5.60%
due 1/01/2045 (f) 5,252
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 1,915 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS, AMT,
Series 501, 7.624% due 7/01/2009 (a)(i) $ 2,095
27,930 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (f) 29,223
2,400 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25%
due 1/01/2014 (d)(h) 2,629
1,210 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (g) 1,266
4,200 University of Massachusetts Building Authority, Facilities Revenue Bonds, Senior
Series 4-A, 5.125% due 11/01/2034 (g) 4,405
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Michigan - 3.5% 1,750 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5% due 7/01/2034 (g) 1,801
3,040 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 3,166
1,700 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Project), AMT, Series A, 5.50% due 6/01/2030 (b) 1,801
3,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Project), AMT, Series C, 5.65% due 9/01/2029 (b) 3,483
5,800 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Project), AMT, Series C, 5.45% due 12/15/2032 (b) 6,074
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Minnesota - 1.0% 2,500 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport
Revenue Refunding Bonds, Sub-Series A, 5% due 1/01/2035 (a) 2,578
2,000 Minnesota State Municipal Power Agency, Electric Revenue Bonds, 5% due 10/01/2035 2,040
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Nebraska - 0.5% 2,300 Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc.
Project), AMT, 5.90% due 11/01/2027 2,495
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Nevada - 7.0% 4,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50% due 9/01/2033 (j) 4,304
2,000 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2030 (d) 2,064
19,100 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2036 (d) 19,628
5,710 Washoe County, Nevada, School District, GO, 5.875% due 12/01/2009 (f)(h) 6,205
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New Hampshire - 3.5% 10,000 New Hampshire Health and Education Facilities Authority Revenue Bonds
(Dartmouth-Hitchcock Obligation Group, 5.50% due 8/01/2027 (f) 10,834
5,000 New Hampshire State Business Finance Authority, PCR, Refunding (Public Service
Company), AMT, Series D, 6% due 5/01/2021 (g) 5,325
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New Jersey - 5.4% 910 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 960
1,385 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 1,432
2,750 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%
due 7/01/2031 (g) 2,935
3,575 New Jersey EDA, Revenue Bonds, ROLS, Series II-R-309-1, 7.843% due 6/15/2024 (e)(i) 4,102
3,000 New Jersey EDA, Revenue Bonds, ROLS, Series II-R-309-2, 7.843% due 6/15/2031 (e)(i) 3,453
3,860 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2028 4,032
7,500 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2030 7,801
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New York - 11.5% 8,990 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2032 (d) 9,306
3,150 New York City, New York, City Municipal Water Finance Authority, Water and Sewer
System, Revenue Refunding Bonds, Series A, 5% due 6/15/2035 (g) 3,254
6,920 New York City, New York, GO, RIB, Series 394, 8.434% due 8/01/2016 (g)(i) 8,308
9,325 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2017 (f) 9,483
2,410 New York City, New York, GO, Series B, 5.875% due 8/15/2006 (b)(h) 2,480
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,590 New York City, New York, GO, Series B, 5.875% due 8/15/2013 (b) $ 2,665
1,255 New York City, New York, GO, Series F, 5.75% due 2/01/2019 (b) 1,276
8,000 New York State Thruway Authority, General Revenue Refunding Bonds, Series G, 5%
due 1/01/2032 (f) 8,360
7,320 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25%
due 6/01/2022 (a) 7,843
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Ohio - 1.1% 2,500 Columbus, Ohio, City School District, GO (School Facilities Construction and
Improvements), 5.25% due 12/01/2027 (f) 2,690
2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds (Consolidated Health System-Jackson
Hospital), 6.125% due 10/01/2009 (h)(j) 2,193
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Oklahoma - 0.8% 1,250 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series A, 6% due 6/01/2020 (d) 1,447
1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6% due 6/01/2019 (d) 1,075
1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6.125% due 6/01/2026 (d) 1,080
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Oregon - 1.9% 7,500 Portland, Oregon, Sewer System Revenue Bonds, RIB, Series 386, 8.17%
due 8/01/2020 (d)(i) 8,899
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Pennsylvania - 7.8% 6,000 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds
(The School District of Philadelphia Project), 5.25% due 6/01/2025 (f) 6,454
15,300 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds
(The School District of Philadelphia Project), 5% due 6/01/2033 (f) 15,772
6,250 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue
Bonds, Series B, 5.50% due 10/01/2021 (f) 6,795
6,170 Philadelphia, Pennsylvania, School District, GO, Series B, 5.625%
due 8/01/2012 (d)(h) 6,898
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Rhode Island - 0.6% 2,500 Providence, Rhode Island, GO, Series A, 5.70% due 7/15/2007 (f)(h) 2,609
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Tennessee - 5.4% 13,500 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment
Corporation), 5.875% due 10/01/2024 (a) 14,727
5,000 Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds, AMT,
Series D, 6.25% due 3/01/2018 (a) 5,443
2,075 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.10% due 7/01/2013 (a) 2,104
2,390 Tennessee HDA, Homeownership Revenue Bonds, AMT, Series 2-C, 6.20% due 7/01/2015 (a) 2,454
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Texas - 13.3% 2,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), Trust
Certificates, Second Tier, Series B, 6% due 1/01/2023 2,127
1,000 Bell County, Texas, Health Facilities Development Revenue Bonds (Lutheran General
Health Care System), 6.50% due 7/01/2019 (c) 1,216
1,835 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2017 (d) 1,992
2,145 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2018 (d) 2,329
2,385 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2019 (d) 2,590
5,235 Denton, Texas, Utility System Revenue Bonds, RIB, Series 369, 8.67%
due 12/01/2017 (f)(i) 6,379
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 6,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.875% due 10/01/2020 (j) $ 6,739
2,600 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.375% due 10/01/2025 (j) 2,866
4,000 Harris County, Houston, Texas, Sports Authority Revenue Refunding Bonds, Senior
Lien, Series G, 5.75% due 11/15/2020 (g) 4,381
4,000 Harris County, Texas, Toll Road Revenue Refunding Bonds, Senior Lien, Series A, 5.25%
due 8/15/2035 (f) 4,153
2,700 Houston, Texas, Airport System Revenue Refunding Bonds, Sub-Lien, Series B, 5.50%
due 7/01/2030 (f) 2,867
9,250 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.46%** due 8/15/2028 (d) 2,861
7,150 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (g) 7,444
7,200 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First
Tier, Series A, 5.75% due 8/15/2038 (a) 7,928
4,600 Travis County, Texas, Health Facilities Development Corporation, Revenue Refunding
Bonds (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (g)(h) 5,085
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Utah - 3.8% 15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals Inc.), 6.30%
due 2/15/2015 (g) 17,315
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Virginia - 0.7% 3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion
Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 3,359
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Washington - 6.0% 10,000 Energy Northwest, Washington, Electric Revenue Bonds, DRIVERS, Series 242, 8.16%
due 7/01/2017 (g)(i) 12,166
2,835 King County, Washington, Sewer Revenue Refunding Bonds, Series B, 5.50% due
1/01/2027 (f) 3,042
2,400 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%
due 12/01/2034 (a) 2,546
4,475 Seattle, Washington, Municipal Light and Power Revenue Refunding Bonds, 5% due
11/01/2028 (f) 4,632
5,000 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011 (f) 5,398
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Puerto Rico - 0.3% 1,475 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II, 5.25% due
7/01/2031 1,530
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Total Municipal Bonds (Cost - $671,941) - 153.4% 705,679
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Shares
Held Short-Term Securities
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4,700 Merrill Lynch Institutional Tax-Exempt Fund (l) 4,700
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Total Short-Term Securities (Cost - $4,700) - 1.0% 4,700
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Total Investments (Cost - $676,641*) - 154.4% 710,379
Liabilities in Excess of Other Assets - (0.1%) (183)
Preferred Stock, at Redemption Value - (54.3%) (250,028)
---------
Net Assets Applicable to Common Stock - 100.0% $ 460,168
=========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 676,641
=========
Gross unrealized appreciation $ 34,820
Gross unrealized depreciation (1,082)
---------
Net unrealized appreciation $ 33,738
=========
MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
** Represents a zero coupon or step bond; the interest rate shown is the
effective yield at the time of purchase.
(a) AMBAC Insured.
(b) XL Capital Insured.
(c) Escrowed to maturity.
(d) FGIC Insured.
(e) Assured Guaranty Insured.
(f) FSA Insured.
(g) MBIA Insured.
(h) Prerefunded.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Radian Insured.
(k) CIFG Insured.
(l) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
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Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (6,800) $ 29
--------------------------------------------------------------------------
o Forward interest rate swaps outstanding as of January 31, 2006 were as
follows:
-----------------------------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
-----------------------------------------------------------------------------------------------------
Pay a fixed rate of 3.94% and receive a floating rate based on
1-week Bond Market Association rate
Broker, JPMorgan Chase Bank
Expires February 2016 $ 40,000 $ (528)
Pay a fixed rate of 3.767% and receive a floating rate based on
1-week Bond Market Association rate
Broker, JPMorgan Chase Bank
Expires April 2016 $ 15,000 31
-----------------------------------------------------------------------------------------------------
Total $ (497)
============
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to the
filing date of this report.
2(b) - There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal quarter of the period
covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MuniYield Quality Fund, Inc.
By: /s/ Robert C. Doll, Jr.
---------------------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Quality Fund, Inc.
Date: March 20, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
---------------------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Quality Fund, Inc.
Date: March 20, 2006
By: /s/ Donald C. Burke
---------------------------------
Donald C. Burke
Chief Financial Officer
MuniYield Quality Fund, Inc.
Date: March 20, 2006