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 811-07083

 

Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Arizona 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: 07/31/2012

 

Date of reporting period: 04/30/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2012 (Unaudited)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona — 129.8%

 

 

 

 

 

 

 

Corporate — 6.9%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp.,
Refunding RB, Southern California
Edison Co., Series A, 5.00%, 6/01/35

 

$

2,850

 

$

3,094,359

 

Pima County IDA, Tucson Electric Power,
5.75%, 9/01/29

 

 

500

 

 

529,905

 

Pima County IDA, RB, Tucson Electric
Power, Series A, 5.25%, 10/01/40

 

 

1,000

 

 

1,039,600

 

 

 

 

 

 

 

4,663,864

 

County/City/Special District/School District — 44.6%

 

 

 

 

 

 

 

City of Glendale Arizona, RB (NPFGC),
5.00%, 7/01/25

 

 

1,000

 

 

1,098,340

 

City of Tucson Arizona, COP:

 

 

 

 

 

 

 

Series A (NPFGC), 5.00%, 7/01/20

 

 

1,500

 

 

1,641,945

 

(AGC), 5.00%, 7/01/29

 

 

1,000

 

 

1,099,660

 

County of Pinal Arizona, COP:

 

 

 

 

 

 

 

5.00%, 12/01/26

 

 

1,250

 

 

1,313,700

 

5.00%, 12/01/29

 

 

1,250

 

 

1,303,487

 

Gilbert Public Facilities Municipal
Property Corp. Arizona, RB, 5.50%,
7/01/27

 

 

2,000

 

 

2,276,040

 

Gladden Farms Community Facilities
District, GO, 5.50%, 7/15/31

 

 

750

 

 

759,473

 

Greater Arizona Development Authority,
RB, Santa Cruz County Jail, Series 2,
5.25%, 8/01/31

 

 

1,155

 

 

1,238,056

 

Marana Municipal Property Corp., RB,
Series A, 5.00%, 7/01/28

 

 

2,500

 

 

2,689,100

 

Maricopa County Community College
District Arizona, GO, Series C, 3.00%,
7/01/22

 

 

1,000

 

 

1,052,100

 

Maricopa County Public Finance Corp.,
RB, Series A (AMBAC), 5.00%,
7/01/24

 

 

1,000

 

 

1,094,220

 

Maricopa County Unified School District
No. 89-Dysart Arizona, GO, School
Improvement Project of 2006, Series
C, 6.00%, 7/01/28

 

 

1,000

 

 

1,149,550

 

Mohave County Unified School District
No. 20 Kingman, GO, School
Improvement Project of 2006, Series
C (AGC), 5.00%, 7/01/26

 

 

1,000

 

 

1,171,290

 

Phoenix Civic Improvement Corp., RB,
Subordinate, Civic Plaza Expansion
Project, Series A (NPFGC), 5.00%,
7/01/35

 

 

3,325

 

 

3,518,016

 

Phoenix Mesa Airport Authority, RB,
Mesa Project, AMT, 5.00%, 7/01/38

 

 

3,600

 

 

3,639,816

 

Scottsdale Municipal Property Corp.
Arizona, RB, Water & Sewer
Development Project, Series A,
5.00%, 7/01/24

 

 

1,500

 

 

1,737,480

 

Vistancia Community Facilities District
Arizona, GO:

 

 

 

 

 

 

 

6.75%, 7/15/22

 

 

1,275

 

 

1,283,619

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 

Arizona (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded)

 

 

 

 

 

 

 

Vistancia Community Facilities District
Arizona, GO (concluded):

 

 

 

 

 

 

 

5.75%, 7/15/24

 

$

750

 

$

797,235

 

Yuma County Library District, GO
(Syncora), 5.00%, 7/01/26

 

 

1,000

 

 

1,083,850

 

 

 

 

 

 

 

29,946,977

 

Education — 11.7%

 

 

 

 

 

 

 

Arizona State University, RB, Series
2008-C:

 

 

 

 

 

 

 

6.00%, 7/01/25

 

 

970

 

 

1,150,148

 

6.00%, 7/01/26

 

 

745

 

 

879,413

 

6.00%, 7/01/27

 

 

425

 

 

499,966

 

6.00%, 7/01/28

 

 

400

 

 

468,584

 

Maricopa County IDA Arizona, RB,
Arizona Charter Schools Project,
Series A, 6.63%, 7/01/20

 

 

700

 

 

559,727

 

Phoenix IDA Arizona, Education
Revenue, RB, Great Hearts Academies
Project, 6.30%, 7/01/42

 

 

500

 

 

516,675

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project,
Series A, 6.75%, 7/01/21

 

 

400

 

 

400,472

 

Arizona Charter Schools Project,
Series C, 6.70%, 7/01/21

 

 

710

 

 

710,717

 

Arizona Charter Schools Project,
Series C, 6.75%, 7/01/31

 

 

985

 

 

985,197

 

Pima County IDA, Refunding RB:

 

 

 

 

 

 

 

Charter Schools II, Series A, 6.75%,
7/01/21 (a)

 

 

160

 

 

161,774

 

Arizona Charter Schools
Project, Series O, 5.00%,
7/01/26

 

 

995

 

 

873,152

 

University of Arizona, COP, University of
Arizona Projects, Series B (AMBAC),
5.00%, 6/01/28

 

 

650

 

 

669,520

 

 

 

 

 

 

 

7,875,345

 

Health — 20.2%

 

 

 

 

 

 

 

Arizona Health Facilities Authority, RB,
Catholic Healthcare West, Series B-2,
5.00%, 3/01/41

 

 

500

 

 

526,605

 

Arizona Health Facilities Authority,
Refunding RB, Banner Health,
Series D:

 

 

 

 

 

 

 

6.00%, 1/01/30

 

 

1,500

 

 

1,542,705

 

5.50%, 1/01/38

 

 

2,300

 

 

2,476,939

 

Maricopa County IDA, RB, Catholic
Healthcare West, Series A, 6.00%,
7/01/39

 

 

170

 

 

190,776

 

Maricopa County IDA Arizona, Refunding
RB:

 

 

 

 

 

 

 

Catholic Healthcare West,
Series A, 5.50%, 7/01/26

 

 

1,850

 

 

1,937,819

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD ARIZONA FUND, INC.

APRIL 30, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

Maricopa County IDA Arizona, Refunding
RB (concluded):

 

 

 

 

 

 

 

Samaritan Health Services, Series A
(NPFGC), 7.00%, 12/01/16 (b)

 

$

1,000

 

$

1,178,830

 

Scottsdale IDA, RB, Scottsdale
Healthcare, Series C (AGM), 5.00%,
9/01/35

 

 

500

 

 

538,060

 

Tempe IDA, Refunding RB, Friendship
Village of Tempe, Series A, 6.25%,
12/01/42

 

 

500

 

 

512,640

 

University Medical Center Corp. Arizona,
RB:

 

 

 

 

 

 

 

6.00%, 7/01/39

 

 

1,000

 

 

1,109,230

 

6.50%, 7/01/39

 

 

500

 

 

567,210

 

Yavapai County IDA Arizona, RB, Yavapai
Regional Medical Center, Series A,
6.00%, 8/01/33

 

 

1,800

 

 

1,826,244

 

Yavapai County IDA Arizona, Refunding
RB, Northern Arizona Healthcare
System, 5.25%, 10/01/26

 

 

1,000

 

 

1,154,550

 

 

 

 

 

 

 

13,561,608

 

Housing — 2.9%

 

 

 

 

 

 

 

Maricopa County & Phoenix Industrial
Development Authorities, Refunding
RB, AMT (Ginnie Mae), S/F:

 

 

 

 

 

 

 

Series A-1, 5.75%, 5/01/40

 

 

285

 

 

308,122

 

Series A-2, 5.80%, 7/01/40

 

 

255

 

 

262,943

 

Maricopa County IDA Arizona, RB, Series
3-B, AMT (Ginnie Mae), 5.25%,
8/01/38

 

 

427

 

 

454,768

 

Phoenix & Pima County IDA, RB, Series
1A, AMT (Ginnie Mae), 5.65%,
7/01/39

 

 

156

 

 

165,266

 

Phoenix & Pima County IDA, Refunding
RB, Series 2007-1, AMT (Ginnie Mae),
5.25%, 8/01/38

 

 

325

 

 

342,305

 

Phoenix IDA Arizona, Refunding RB,
Series 2007-2, AMT (Ginnie Mae),
5.50%, 12/01/38

 

 

397

 

 

420,021

 

 

 

 

 

 

 

1,953,425

 

State — 19.1%

 

 

 

 

 

 

 

Arizona School Facilities Board, COP:

 

 

 

 

 

 

 

5.13%, 9/01/21

 

 

1,000

 

 

1,135,960

 

5.75%, 9/01/22

 

 

2,000

 

 

2,331,440

 

Arizona State Transportation Board, RB,
Series B, 5.00%, 7/01/30

 

 

4,000

 

 

4,471,240

 

Greater Arizona Development Authority,
RB, Series B (NPFGC):

 

 

 

 

 

 

 

5.00%, 8/01/30

 

 

1,600

 

 

1,721,584

 

5.00%, 8/01/35

 

 

1,000

 

 

1,058,160

 

State of Arizona, RB, Series A (AGM),
5.00%, 7/01/29

 

 

1,930

 

 

2,138,228

 

 

 

 

 

 

 

12,856,612

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona (concluded)

 

 

 

 

 

 

 

Transportation — 6.5%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB:

 

 

 

 

 

 

 

Junior Lien, Series A, 5.00%,
7/01/40

 

$

1,000

 

$

1,069,050

 

Senior Lien, Series A, 5.00%,
7/01/33

 

 

1,000

 

 

1,076,210

 

Senior Lien, Series B, AMT (NPFGC),
5.25%, 7/01/27

 

 

450

 

 

451,008

 

Senior Lien, Series B, AMT (NPFGC),
5.75%, 7/01/17

 

 

1,000

 

 

1,006,480

 

Senior Lien, Series B, AMT (NPFGC),
5.25%, 7/01/32

 

 

755

 

 

756,321

 

 

 

 

 

 

 

4,359,069

 

Utilities — 17.9%

 

 

 

 

 

 

 

Gilbert Water Resource Municipal
Property Corp., RB, Subordinate Lien
(NPFGC), 5.00%, 10/01/29

 

 

900

 

 

961,965

 

Phoenix Civic Improvement Corp., RB,
Junior Lien (NPFGC), 5.50%,
7/01/20 (a)

 

 

1,500

 

 

1,513,350

 

Phoenix Civic Improvement Corp.,
Refunding RB, Senior Lien, 5.50%,
7/01/22

 

 

2,000

 

 

2,436,740

 

Pima County Arizona, RB, Series B,
5.00%, 7/01/26

 

 

1,000

 

 

1,143,300

 

Pinal County Electric District No 3, RB,
Refunding, 5.25%, 7/01/36

 

 

2,500

 

 

2,697,925

 

Pinal County IDA Arizona, RB, San
Manuel Facility Project, AMT, 6.25%,
6/01/26

 

 

500

 

 

479,260

 

Salt River Project Agricultural
Improvement & Power District, RB,
Series A, 5.00%, 1/01/24

 

 

1,000

 

 

1,166,670

 

Salt River Project Agricultural
Improvement & Power District,
Refunding RB, Salt River Project,
Series A, 5.00%, 1/01/35

 

 

1,500

 

 

1,623,675

 

 

 

 

 

 

 

12,022,885

 

Total Municipal Bonds in Arizona

 

 

 

 

 

87,239,785

 

 

 

 

 

 

 

 

 

Guam — 1.3%

 

 

 

 

 

 

 

State — 1.3%

 

 

 

 

 

 

 

Government of Guam Business
Privilege, RB, Series A, 5.13%,
1/01/42

 

 

800

 

 

868,200

 

Total Municipal Bonds in Guam

 

 

 

 

 

868,200

 

 

 

 

 

 

 

 

 

Puerto Rico — 12.6%

 

 

 

 

 

 

 

State — 8.8%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO,
Series A, 6.00%, 7/01/38

 

 

800

 

 

856,848

 

Puerto Rico Public Buildings Authority,
Refunding RB, Government Facilities,
Series M-3 (NPFGC), 6.00%, 7/01/28

 

 

700

 

 

775,425

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD ARIZONA FUND, INC.

APRIL 30, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico (concluded)

 

 

 

 

 

 

 

State (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

$

1,500

 

$

1,744,800

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.81%,
8/01/41 (c)

 

 

9,530

 

 

1,830,618

 

First Sub, Series C, 6.00%,
8/01/39

 

 

600

 

 

685,866

 

 

 

 

 

 

 

5,893,557

 

Transportation — 0.1%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation
Authority, Refunding RB, Series AA
(NPFGC), 5.50%, 7/01/18

 

 

50

 

 

57,021

 

Utilities — 3.7%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, RB,
Series WW:

 

 

 

 

 

 

 

5.38%, 7/01/24

 

 

1,000

 

 

1,105,520

 

5.50%, 7/01/38

 

 

1,000

 

 

1,028,320

 

Puerto Rico Electric Power Authority,
Refunding RB, Series A, 5.00%,
7/01/42 (d)

 

 

380

 

 

379,384

 

 

 

 

 

 

 

2,513,224

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

8,463,802

 

 

 

 

 

 

 

 

 

Total Municipal Bonds – 143.7%

 

 

 

 

 

96,571,787

 

 

 

 

 

 

 

 

 


Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (e)

 

 

 

 

 

 

 

Arizona — 11.2%

 

 

 

 

 

 

 

Utilities — 11.2%

 

 

 

 

 

 

 

City of Mesa Arizona, RB, 5.00%,
7/01/35

 

 

3,000

 

 

3,340,260

 

Phoenix Arizona Civic Improvement
Corp., RB, 5.00%, 7/01/34

 

 

3,000

 

 

3,433,320

 

Salt River Project Agricultural
Improvement & Power District, RB,
5.00%, 1/01/38

 

 

660

 

 

715,777

 

Total Municipal Bonds in Arizona

 

 

 

 

 

7,489,357

 

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 11.2%

 

 

 

 

 

7,489,357

 

Total Long-Term Investments
(Cost – $97,091,017) – 154.9%

 

 

 

 

 

104,061,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

BIF Arizona Municipal Money Fund,
0.00% (f)(g)

 

 

2,725,036

 

$

2,725,036

 

Total Short-Term Securities
(Cost – $2,725,036) – 4.1%

 

 

 

 

 

2,725,036

 

Total Investments (Cost - $99,816,053*) – 159.0%

 

 

 

 

 

106,786,180

 

Other Assets Less Liabilities – 1.5%

 

 

 

 

 

1,030,065

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (5.0)%

 

 

 

 

 

(3,331,617

)

VRDP Shares, at Redemption Value – (55.5)%

 

 

 

 

 

(37,300,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

67,184,628

 

 

 

*

As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax cost

 

$

96,500,740

 

Gross unrealized appreciation

 

$

7,293,160

 

Gross unrealized depreciation

 

 

(337,720

)

Net unrealized appreciation

 

$

6,955,440

 

 

 

(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)

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


 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Morgan Stanley

 

$

379,384

 

$

4,081

 

 

 

(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.

 

 

(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:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31, 2011

 

Net
Activity

 

Shares
Held at
April 30, 2012

 

Income

 

 

BIF Arizona
Municipal
Money Fund

 

 

2,960,530

 

 

(235,494

)

 

2,725,036

 

$

—

 

 

 

(g)

Represents the current yield as of report date.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD ARIZONA FUND, INC.

APRIL 30, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

 

•

Financial futures contracts sold as of April 30, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

35

 

 

10-Year US
Treasury
Note

 

 

Chicago
Board
of Trade

 

 

June
2012

 

$

4,629,844

 

$

(55,067

)

 

 

•

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. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.


 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

IDA

Industrial Development Authority

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

Syncora

Syncora Guarantee

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

•

Level 1 — unadjusted 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 and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

104,061,144

 

 

—

 

$

104,061,144

 

Short-Term
Securities

 

$

2,725,036

 

 

—

 

 

—

 

 

2,725,036

 

Total

 

$

2,725,036

 

$

104,061,144

 

 

—

 

$

106,786,180

 

 

 

1

See above Schedule of Investments for values in each sector or political subdivision.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(55,067

)

 

—

 

 

—

 

$

(55,067

)

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD ARIZONA FUND, INC.

APRIL 30, 2012

4


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

Certain of the Fund’s assets and liabilities are held at carrying amount which approximates fair value. Such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash pledged
as collateral
for financial
futures
contracts

 

$

40,000

 

 

—

 

 

—

 

$

40,000

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

TOB trust
certificates

 

$

—

 

 

(3,330,000

)

 

—

 

 

(3,330,000

)

VRDP shares

 

 

—

 

 

(37,300,000

)

 

—

 

 

(37,300,000

)

Total

 

$

40,000

 

$

(40,630,000

)

 

—

 

$

(40,590,000

)

There were no transfers between levels during the period ended April 30, 2012.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD ARIZONA FUND, INC.

APRIL 30, 2012

5

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 Arizona Fund, Inc.

 

 
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Arizona Fund, Inc.
   
  Date: June 22, 2012
   
  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 MuniYield Arizona Fund, Inc.
   
  Date: June 22, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Arizona Fund, Inc.
     
  Date: June 22, 2012