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 811-7083
Name of Fund: MuniYield Arizona 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 Arizona 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 Arizona Fund, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
Amount Municipal Bonds Value
Arizona - 138.9% $ 1,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding
Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,026
1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West),
Series A, 6.625% due 7/01/2020 1,986
4,335 Arizona State University Revenue Bonds, DRIVERS, Series 270, 7.659% due
7/01/2021 (e)(k) 5,266
3,285 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds,
AMT, Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,505
1,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds,
AMT, Senior-Series A-1, 5.90% due 5/01/2024 1,061
1,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, (Baseball Training
Facilities Project), 5% due 7/01/2016 1,029
2,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, (Multi-Purpose Stadium
Facility), Series A, 5.375% due 7/01/2023 (b) 2,166
100 Coconino County, Arizona, Pollution Control Corporation Revenue Bonds (Arizona
Public Service Co.-Navajo Project), VRDN, AMT, Series A, 3.16% due 10/01/2029 (l) 100
1,000 Cottonwood, Arizona, Senior Lien Water System Revenue Bonds, 5% due 7/01/2035 (h) 1,035
1,250 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A, 5.25%
due 7/01/2025 (e) 1,347
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A, 5%
due 7/01/2036 (e) 1,551
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Sub-Series B, 5% due
7/01/2036 (e) 1,551
500 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding
Bonds (American Graduate School International), 5.875% due 7/01/2006 (c)(i) 510
1,000 Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B, 5%
due 8/01/2030 (b) 1,044
1,670 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation),
6.125% due 4/01/2007 (i) 1,754
735 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation),
6.125% due 4/01/2018 763
1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools
Project 1), Series A, 6.625% due 7/01/2020 1,003
2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan
Health Services), Series A, 7% due 12/01/2016 (b)(d) 2,957
Portfolio Abbreviations
To simplify the listings of MuniYield Arizona 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
GO General Obligation Bonds
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
MuniYield Arizona Fund, Inc.
Schedule of Investments as of January 31, 2006 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Arizona $ 2,395 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Place Five and Greenery
(concluded) Apartments), Series A, 6.625% due 1/01/2027 (d) $ 2,566
1,000 Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second
Series, 5% due 7/01/2025 (e) 1,051
1,485 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Public
Service Company of New Mexico Project), Series A, 6.30% due 12/01/2026 1,553
2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB,
Series 511X, 7.72% due 7/01/2014 (a)(k) 2,643
1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60%
due 7/01/2012 2,129
500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO,
Refunding, 7.50% due 7/01/2010 (e) 580
1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement,
GO (Saddle Mountain), Series A, 5% due 7/01/2014 1,035
1,000 Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A, 5.625% due
1/01/2010 (b)(i) 1,084
1,000 Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A, 5.875% due
1/01/2010 (b)(i) 1,093
1,000 Nogales Arizona Municipal Development Authority, Inc., Revenue Bonds, 5% due
6/01/2030 (a) 1,037
4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (e) 4,904
2,500 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic
Plaza Expansion Project), Sub-Series A, 5% due 7/01/2030 (e) 2,616
2,000 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic
Plaza Expansion Project), Sub-Series A, 5% due 7/01/2035 (e) 2,078
2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding
Bonds, Junior Lien, 5.50% due 7/01/2020 (e) 2,728
2,000 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding
Bonds, Junior Lien, 5% due 7/01/2029 (b) 2,095
750 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C, 6.70% due 7/01/2021 793
1,000 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C, 6.75% due 7/01/2031 1,047
1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter
Schools Project II), Series A, 6.75% due 7/01/2021 1,059
1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A,
5.625% due 4/01/2014 (b) 1,043
370 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1,
6.20% due 11/01/2030 (f)(g) 387
3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50%
due 7/01/2009 (e) 3,441
1,250 Pinal County, Arizona, COP, 5% due 12/01/2026 1,286
1,250 Pinal County, Arizona, COP, 5% due 12/01/2029 1,272
1,500 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric
System Revenue Refunding Bonds, Series A, 5% due 1/01/2035 1,567
2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due
12/01/2031 2,402
1,000 Scottsdale, Arizona, Municipal Property Corporation, Excise Tax Revenue Bonds, 5%
due 7/01/2029 1,052
1,500 Scottsdale, Arizona, Municipal Property Corporation, Excise Tax Revenue Bonds, 5%
due 7/01/2030 1,576
1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center),
5% due 12/01/2035 (j) 1,220
1,500 South Campus Group LLC, Arizona Student Housing Revenue Bonds (Arizona State
University South Campus Project), Series 2003, 5.625% due 9/01/2035 (b) 1,642
2,000 Tempe, Arizona, GO, 3.50% due 7/01/2024 1,758
1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson
Inc. Project), Series A, 6.125% due 7/01/2024 (j) 1,089
425 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds (Mortgage-
Backed Securities Program), AMT, Series A-1, 6% due 7/01/2021 (f)(g) 431
1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,157
2,000 University of Arizona, COP, Series B, 5% due 6/01/2028 (a) 2,068
1,275 Vistancia Community Facilities District, Arizona, GO, 6.75% due 7/15/2022 1,365
750 Vistancia Community Facilities District, Arizona, GO, 5.75% due 7/15/2024 759
500 Watson Road Community Facilities District, Arizona, Special Assessment Revenue Bonds,
6% due 7/01/2030 500
2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical
Center), Series A, 6% due 8/01/2033 2,132
Guam - 1.6% 1,000 Guam Government Waterworks Authority, Water and Wastewater System, Revenue Refunding
Bonds, 5.875% due 7/01/2035 1,051
Puerto Rico - 19.2% 500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 8.193% due
7/01/2016 (b)(k) 591
1,700 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue
Bonds, Series G, 5% due 7/01/2033 1,721
2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,033
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II, 5.25% due
7/01/2031 1,037
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due
7/01/2029 1,547
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Revenue Bonds (Cogeneration Facility-AES Puerto Rico Project), AMT,
6.625% due 6/01/2026 1,631
2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding
Bonds, Series I, 5.25% due 7/01/2033 2,081
1,700 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 1,790
Total Municipal Bonds (Cost - $99,230) - 159.7% 103,374
Shares
Held Short-Term Securities
615 CMA Arizona Municipal Money Fund (m) 615
Total Short-Term Securities (Cost - $615) - 1.0% 615
Total Investments (Cost - $99,845*) - 160.7% 103,989
Other Assets Less Liabilities - 1.6% 1,033
Preferred Stock, at Redemption Value - (62.3%) (40,316)
----------
Net Assets Applicable to Common Stock - 100.0% $ 64,706
==========
* 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 $ 99,853
==============
Gross unrealized appreciation $ 4,284
Gross unrealized depreciation (148)
--------------
Net unrealized appreciation $ 4,136
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) Connie Lee Insured.
(d) Escrowed to maturity.
(e) FGIC Insured.
(f) FHLMC Collateralized.
(g) FNMA/GNMA Collateralized.
(h) XL Capital Insured.
(i) Prerefunded.
(j) Radian Insured.
(k) The rate disclosed is that currently in effect. This rate changes periodically
and inversely based upon prevailing market rates.
(l) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate changes
periodically based upon prevailing market rates.
(m) 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
CMA Arizona Municipal Money Fund (992) $ 8
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 Arizona Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Arizona 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 Arizona Fund, Inc.
Date: March 20, 2006
By: /s/ Donald C. Burke
--------------------
Donald C. Burke
Chief Financial Officer
MuniYield Arizona Fund, Inc.
Date: March 20, 2006