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 811-06660
Name of Fund: BlackRock MuniYield Quality Fund, Inc. (MQY)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock MuniYield Quality Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2008
Date of reporting period: 11/01/2007 - 01/31/2008
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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Alabama - 2.3% $ 3,000 Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
4.75% due 1/01/2025 $ 3,012
7,275 University of Alabama, General Revenue Bonds, Series A, 5% due 7/01/2034 (j) 7,390
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Arizona - 0.7% 3,320 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%
due 12/01/2032 3,092
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California - 22.3% 4,150 Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.45% due 10/01/2025 (a)(m) 3,483
1,250 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (h) 1,300
2,200 Arcadia, California, Unified School District, Capital Appreciation, GO
(Election of 2006), Series A, 4.96% due 8/01/2039 (h)(m) 416
3,250 Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 5.20% due 8/01/2037 (j)(m) 646
7,405 Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 4.87% due 8/01/2038 (j)(m) 1,386
2,790 California State, GO, 5.50% due 4/01/2014 (k) 3,203
5 California State, GO, 5.50% due 4/01/2028 5
1,680 California State, GO, 5% due 11/01/2037 (p) 1,682
4,450 California State, GO, Refunding, 5.25% due 9/01/2010 (k) 4,776
30 California State, GO, Refunding, 5.125% due 6/01/2027 30
5,700 California State, GO, Refunding, 5.25% due 2/01/2033 (l) 5,821
2,500 California State, GO, Refunding, 5% due 6/01/2037 2,504
3,450 California State University, Systemwide Revenue Bonds, Series A,
5% due 11/01/2035 (e) 3,475
10,000 California State, Various Purpose, GO, 5.25% due 11/01/2029 10,269
3,200 California State, Various Purpose, GO, 5.50% due 11/01/2033 3,377
1,200 Chino Valley, California, Unified School District, GO (Election of 2002),
Series C, 5.25% due 8/01/2030 (j) 1,272
3,525 Coachella Valley, California, Unified School District, GO (Election of 2005),
Series A, 5% due 8/01/2028 (e) 3,551
2,150 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5% due 8/01/2026 (p) 2,193
1,230 Fresno, California, Unified School District, GO (Election of 2001),
Series E, 5% due 8/01/2030 (h) 1,286
1,600 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (k)(p) 1,797
Portfolio Abbreviation
To simplify the listinf 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
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 3,410 Los Angeles, California, Municipal Improvement Corporation, Lease
Revenue Bonds, Series B-1, 4.75% due 8/01/2037 (e) $ 3,394
4,000 Metropolitan Water District of Southern California, Waterworks Revenue
Bonds, Series B-1, 5% due 10/01/2029 (e) 4,127
2,275 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2036 (e) 2,337
2,000 Mount Diablo, California, Unified School District, GO (Election of 2002),
5% due 7/01/2027 (e) 2,053
2,750 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (e) 2,774
3,500 Orange County, California, Sanitation District, COP, Series B, 5% due 2/01/2030 (h) 3,605
1,200 Orange County, California, Sanitation District, COP, Series B, 5% due 2/01/2031 (h) 1,235
2,000 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Paguay Redevelopment Project), 5.125% due 6/15/2033 (a) 2,011
550 Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Rancho Redevelopment Project), Series A, 5% due 9/01/2034 (j) 551
2,100 Sacramento, California, Unified School District, GO (Election of 2002),
5% due 7/01/2030 (j) 2,180
9,000 San Diego County, California, Water Authority, Water Revenue Refunding Bonds,
COP, Series A, 5% due 5/01/2032 (j) 9,157
5,300 San Jose, California, Airport Revenue Refunding Bonds, AMT, Series A, 5.50%
due 3/01/2032 (a) 5,503
2,725 San Mateo County, California, Community College District, GO (Election of 2001),
Series A, 5% due 9/01/2026 (e) 2,808
1,950 Tamalpais, California, Union High School District, GO (Election of 2001),
5% due 8/01/2028 (h) 2,034
3,150 Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5% due 8/01/2030 (j) 3,272
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Colorado - 1.6% 1,650 Colorado Health Facilities Authority Revenue Bonds (Catholic Health
Initiatives), Series A, 5.50% due 3/01/2032 (d) 1,768
1,600 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2027 (l) 1,639
1,000 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2033 (l) 1,014
9,000 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue
Refunding Bonds, Series B, 5.485% due 9/01/2029 (j)(m) 2,653
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District of Columbia 5,155 District of Columbia, GO, Series A, 4.75% due 6/01/2036 (e) 5,014
- 1.7% 1,930 District of Columbia, Revenue Refunding Bonds (Catholic University of America),
5.625% due 10/01/2009 (a)(k) 2,058
570 District of Columbia, Revenue Refunding Bonds (Catholic University of America),
5.625% due 10/01/2029 (a) 592
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Florida - 4.7% 2,235 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue
Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (l) 2,296
3,100 Duval County, Florida, School Board, COP (Master Lease Program), 5% due 7/01/2033 (h) 3,175
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 5,415 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25% due 11/15/2036 $ 5,468
6,300 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International
Airport), AMT, 5% due 10/01/2040 (b)(p) 6,245
3,000 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International
Airport), AMT, Series A, 5% due 10/01/2038 (c) 2,899
1,100 Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk Improvement
Program), 5% due 1/01/2037 (j) 1,110
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Georgia - 5.7% 3,500 Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General
Revenue Refunding Bonds, Series C, 5% due 1/01/2033 (h) 3,569
4,270 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2034 (h) 4,393
1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2033 (j) 1,218
2,525 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2039 (j) 2,557
5,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (h) 5,289
2,820 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (h) 2,980
4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power
Corporation-Scherer), Series A, 6.80% due 1/01/2011 5,254
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Hawaii - 0.5% 2,000 Hawaii State, GO, Series CX, 5.50% due 2/01/2021 (h) 2,173
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Illinois - 15.5% 5,000 Chicago, Illinois, GO (Lakefront Millennium Parking Facilities),
5.125% due 1/01/2009 (j)(k) 5,237
3,400 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,
AMT, Series B-2, 5.75% due 1/01/2023 (h) 3,640
4,000 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,
AMT, Series B-2, 5.75% due 1/01/2024 (h) 4,268
3,300 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,
AMT, Series B-2, 6% due 1/01/2029 (p) 3,484
2,665 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds,
3rd Lien, AMT, Series A-2, 5.75% due 1/01/2021 (h) 2,875
3 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, DRIVERS, AMT,
Series 250, 7.615% due 1/01/2021 (j)(o) 3
5,080 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(k) 5,725
28,525 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5.212% due 6/15/2030 (a)(m) 27,301
5,500 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5% due 6/15/2032 (a) 5,624
7,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), 5.50% due 12/15/2024 (e) 7,301
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 (j) 3,802
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Indiana - 3.3% 2,800 Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series A,
5% due 1/01/2037 (j) 2,834
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 (j) 6,608
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 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 (j) $ 5,143
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Louisiana - 5.3% 5,100 Louisiana Local Government Environmental Facilities and Community Development
Authority, Revenue Bonds (Capital Projects and Equipment Acquisition Program),
Series A, 6.30% due 7/01/2030 (a)(m) 5,780
2,800 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue
Bonds, Series B, 5% due 6/01/2023 (a) 2,821
8,600 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 4.75% due 5/01/2039 (h) 8,599
4,675 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31% due 12/01/2027 (a)(m) 1,644
2,000 New Orleans, Louisiana, Aviation Board Revenue Bonds, AMT, Series A, 5%
due 1/01/2038 (h) 1,994
800 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project),
AMT, 4.70% due 11/01/2036 (a) 749
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) 2,015
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Maryland - 1.6% 7,115 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A,
5.25% due 9/01/2039 (p) 7,134
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Massachusetts - 5.3% 3,730 Massachusetts Bay Transportation Authority, General Transportation System
Revenue Refunding Bonds, Series A, 7% due 3/01/2011 (j) 4,221
3,550 Massachusetts Bay Transportation Authority, Revenue Refunding Bonds
(General Transportation System), Series A, 7% due 3/01/2014 (j) 4,183
11,400 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A-2, 4.80% due 7/01/2032 (m) 3,223
13,400 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A-2, 5.209% due 7/01/2035 (m) 3,203
4,000 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series C,
5.60% due 1/01/2045 (h) 4,127
2,200 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128,
4.80% due 12/01/2027 (h) 2,123
1,240 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Lahey Clinic Medical Center), Series D, 5.25% due 8/15/2037 1,252
3 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS, AMT,
Series 501, 7.463% due 7/01/2009 (a)(o) 3
1,210 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (j) 1,252
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Michigan - 3.5% 2,350 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds,
Series B, 5% due 7/01/2036 (e) 2,339
2,300 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 2,388
1,700 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.50% due 6/01/2030 (p) 1,738
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
---------------------------------------------------------------------------------------------------------------------------------
$ 3,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C,
5.65% due 9/01/2029 (p) $ 3,382
5,800 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C,
5.45% due 12/15/2032 (p) 5,883
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Minnesota - 0.9% 4,140 Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), Series B, 5.15% due 12/01/2038 (f)(g) 4,077
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Nebraska - 4.0% 6,315 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series A,
5% due 4/01/2033 (h) 6,545
8,800 Public Power Generation Agency, Nebraska, Revenue Bonds (Whelan Energy Center
Unit 2), Series A, 5% due 1/01/2032 (a) 8,990
2,300 Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc.
Project), AMT, 5.90% due 11/01/2027 2,452
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Nevada - 10.2% 4,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50% due 9/01/2033 (l) 4,167
2,000 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5% due 7/01/2030 (e) 2,007
19,100 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5% due 7/01/2036 (e) 19,042
2,300 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT,
Series A, 4.75% due 9/01/2036 (e) 2,173
12,000 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT,
Series D, 5.25% due 3/01/2038 (e) 12,052
5,710 Washoe County, Nevada, School District, GO, 5.875% due 12/01/2009 (h)(k) 6,092
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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 (h) 10,693
5,000 New Hampshire State Business Finance Authority, PCR, Refunding (Public
Service Company), AMT, Series D, 6% due 5/01/2021 (j) 5,122
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New Jersey - 4.4% 910 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 905
1,385 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 1,342
5,500 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A,
5.25% due 7/01/2031 (j) 5,696
3,860 New Jersey EDA, School Facilities Construction Revenue Bonds,
Series O, 5.125% due 3/01/2028 4,038
7,500 New Jersey EDA, School Facilities Construction Revenue Bonds,
Series O, 5.125% due 3/01/2030 7,818
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New York - 5.9% 3,000 Metropolitan Transportation Authority, New York, Revenue Bonds,
Series B, 5% due 11/15/2035 (j) 3,074
8,990 Metropolitan Transportation Authority, New York, Transportation
Revenue Bonds, Series A, 5% due 11/15/2032 (e) 9,161
10,000 New York State Thruway Authority, General Revenue Refunding Bonds,
Series G, 5% due 1/01/2032 (h) 10,402
3,570 Tobacco Settlement Financing Corporation of New York Revenue Bonds,
Series A-1, 5.25% due 6/01/2022 (a) 3,805
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Ohio - 0.5% 2,000 Jackson, Ohio, Hospital Facilities Revenue Bonds (Consolidated Health
System-Jackson Hospital), 6.125% due 10/01/2009 (k)(l) 2,147
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Oklahoma - 0.5% 1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6% due 6/01/2019 (e) 1,038
1,000 Tulsa, Oklahoma, Airports Improvement Trust, General Revenue Bonds (Tulsa
International Airport), AMT, Series B, 6.125% due 6/01/2026 (e) 1,041
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BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
---------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.7% $ 2,000 Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 99A,
5.25% due 10/01/2032 $ 2,005
5,000 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease
Revenue Bonds, Series B, 5.50% due 10/01/2011 (h)(k) 5,574
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South Carolina - 3.6% 3,750 Berkeley County, South Carolina, School District, Installment Lease Revenue Bonds
(Securing Assets for Education Project), 5.125% due 12/01/2030 3,794
3,200 Kershaw County, South Carolina, Public Schools Foundation, Installment Power
Revenue Refunding Bonds, 5% due 12/01/2029 (c) 3,216
8,900 South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A,
5% due 10/01/2033 (a) 9,036
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Tennessee - 1.7% 5,000 Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds,
AMT, Series D, 6.25% due 3/01/2018 (a) 5,232
2,535 Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A,
5.25% due 9/01/2026 2,509
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Texas - 15.2% 2,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.),
Trust Certificates, Second Tier, Series B, 6% due 1/01/2011 (k) 2,186
1,000 Bell County, Texas, Health Facilities Development Revenue Bonds (Lutheran General
Health Care System), 6.50% due 7/01/2019 (d) 1,229
1,835 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2017 (e) 1,930
2,145 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2018 (e) 2,252
2,385 Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement
Bonds, AMT, Series A, 5.875% due 11/01/2019 (e) 2,504
2,600 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.375% due 10/01/2010 (k)(l) 2,891
6,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.875% due 10/01/2010 (k)(l) 6,748
4,000 Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien,
Series G, 5.75% due 11/15/2020 (j) 4,339
9,250 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.46% due 8/15/2028 (e)(m) 3,068
9,225 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.47% due 8/15/2032 (m) 2,432
13,350 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.58% due 8/15/2035 (m) 2,961
6,150 Lewisville, Texas, Independent School District, Capital Appreciation and School
Building, GO, Refunding, 4.748% due 8/15/2024 (e)(m) 2,645
7,150 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (j) 7,336
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
---------------------------------------------------------------------------------------------------------------------------------
$ 1,225 North Texas Thruway Authority, Dallas North Thruway System Revenue Bonds, Series A,
5% due 1/01/2035 (h) $ 1,263
2,089 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional
Educators Home Loan Program), AMT, Series A-1, 5.50% due 12/01/2039 (f)(g) 2,196
7,200 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.75% due 8/15/2038 (a) 7,470
10,000 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First
Tier, Series A, 5% due 8/15/2042 (a) 9,838
4,600 Travis County, Texas, Health Facilities Development Corporation, Revenue Refunding
Bonds (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (j)(k) 4,972
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Utah - 3.9% 15,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals Inc.),
6.30% due 2/15/2015 (j) 17,307
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Vermont - 0.2% 1,000 Vermont HFA, Revenue Refunding Bonds, AMT, Series C, 5.50% due 11/01/2038 (h) 1,015
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Virginia - 0.7% 3,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old
Dominion Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 3,255
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Washington - 2.5% 2,400 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%
due 12/01/2014 (a)(k) 2,743
5,100 Tacoma, Washington, Regional Water Supply System, Water Revenue Bonds,
5% due 12/01/2032 (j) 5,209
3,185 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011 (h) 3,353
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Total Municipal Bonds (Cost - $583,331) - 133.4% 596,656
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Municipal Bonds Transferred to Tender Option Bond Trusts (i)
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California - 6.1% 10,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (k)(p) 11,231
14,160 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.625% due 6/01/2013 (c)(k) 15,990
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Georgia - 2.3% 10,000 Atlanta, Georgia, Airport Passenger Facility Charge, Subordinate Lien Revenue
Refunding Bonds, Series C, 5% due 1/01/2033 (h) 10,197
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Florida - 1.6% 1,900 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International
Airport), AMT, Series A, 5% due 10/01/2040 (p) 1,811
5,200 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B,
5.125% due 1/01/2032 (e) 5,314
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Illinois - 7.2% 13,665 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.75% due 1/01/2021 (j) 14,297
5,000 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.50% due 1/01/2022 (j) 5,168
12,500 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.375% due 1/01/2032 (j) 12,642
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Massachusetts - 4.2% 3,825 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines
Inc. Project), AMT, Series A, 5.50% due 1/01/2019 (a) 3,982
14,400 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (h) 14,958
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BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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New Jersey - 6.5% $ 7,150 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 (b) $ 7,474
6,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 (b) 6,360
14,660 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%
due 7/01/2031 (j) 15,184
---------------------------------------------------------------------------------------------------------------------------------
New York - 3.3% 13,840 New York City, New York, GO, Series B, 5.875% due 8/01/2016 (j) 15,001
---------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.6% 15,000 Portland, Oregon, Sewer System Revenue Bonds, Series A, 5.75% due 8/01/2010 (e)(k) 16,240
---------------------------------------------------------------------------------------------------------------------------------
Texas - 2.6% 10,470 Denton, Texas, Utility System Revenue Bonds, Series A, 6% due 12/01/2010 (h)(k) 11,509
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Total Municipal Bonds Transferred to Tender Option Bond Trusts
(Cost - $162,761) - 37.4% 167,358
---------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities
---------------------------------------------------------------------------------------------------------------------------------
4,700 Merrill Lynch Institutional Tax-Exempt Fund, 2.47% (n)(q) 4,700
---------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost - $4,700) - 1.0% 4,700
---------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $750,792*) - 171.8% 768,714
Other Assets Less Liabilities - 1.8% 8,274
Liability for Trust Certificates, Including Interest Expense Payable - (17.7%) (79,352)
Preferred Stock, at Redemption Value - (55.9%) (250,263)
----------
Net Assets Applicable to Common Stock - 100.0% $ 447,373
==========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2008, as of computed for federal income tax purposes, were as
follows:
Aggregate cost $ 671,945
=========
Gross unrealized appreciation $ 23,136
Gross unrealized depreciation (5,252)
---------
Net unrealized appreciation $ 17,884
=========
(a) AMBAC Insured.
(b) Assured Guaranty Insured.
(c) CIFG Insured.
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
(d) Escrowed to maturity.
(e) FGIC Insured.
(f) FHLMC Collateralized.
(g) FNMA/GNMA Collateralized.
(h) FSA Insured.
(i) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction.
(j) MBIA Insured.
(k) Prerefunded.
(l) Radian Insured.
(m) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(n) Represents the current yield as of January 31, 2008.
(o) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(p) XL Capital Insured.
(q) 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:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund 3,692 $ 33
--------------------------------------------------------------------------
o Forward interest rate swaps outstanding as of January 31, 2008 were as
follows:
--------------------------------------------------------------------------
Unrealized
Notional Amount Appreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.508% and receive a
floating rate based on 1-week
(SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires April 2023 $ 20,000 $ 61
--------------------------------------------------------------------------
Item 2 - Controls and Procedures
2(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.
2(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 registrant's last fiscal quarter that have
materially affected, or are 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.
BlackRock MuniYield Quality Fund, Inc.
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: March 24, 2008
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/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: March 24, 2008
By: /s/ Neal J. Andrews
--------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: March 24, 2008