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.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock 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: (800) 882-0052
Date of fiscal year end: 10/31/2007
Date of reporting period: 05/01/2007 - 07/31/2007
Item 1 - Schedule of Investments
BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
Arizona - 133.0% $ 1,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue
Refunding Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,004
1,435 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West),
Series A, 6.625% due 7/01/2010 (h) 1,555
3,285 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds,
AMT, Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,455
1,000 Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds,
AMT, Senior-Series A-1, 5.90% due 5/01/2024 1,049
1,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds (Baseball Training
Facilities Project), 5% due 7/01/2016 1,018
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A,
5% due 7/01/2036 (c) 1,549
1,500 Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Sub-Series B,
5% due 7/01/2036 (c) 1,549
1,000 Flagstaff, Arizona, Aspen Place at the Sawmill Improvement District, Special
Assessment Improvement Bonds, 5% due 1/01/2032 1,000
1,000 Gila County, Arizona, Unified School District Number 10 (Payson), GO (School
Improvement Project of 2006), Series A, 1% due 7/01/2027 (a)(n) 979
1,000 Gilbert, Arizona, Water Resource Municipal Property Corporation, Water System
Development Fee and Utility Revenue Bonds, Subordinated Lien, 5% due 10/01/2029 (g) 1,043
750 Gladden Farms Community Facilities District, Arizona, GO, 5.50% due 7/15/2031 761
2,500 Glendale, Arizona, IDA, Revenue Refunding Bonds (Midwestern University), 5%
due 5/15/2031 2,544
3,000 Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series B,
5% due 8/01/2030 (g) 3,112
900 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools
Project 1), Series A, 6.625% due 7/01/2020 892
Portfolio Abbreviations
To simplify the listings of BlackRock 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
GO General Obligation Bonds
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniYield Arizona Fund, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Arizona $ 2,000 Maricopa County, Arizona, IDA, Health Facilities Revenue Refunding Bonds
(concluded) (Catholic Healthcare West Project), Series A, 5.25% due 7/01/2032 $ 2,042
2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds
(Samaritan Health Services), Series A, 7% due 12/01/2016 (b)(g) 2,862
1,999 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 3-B,
5.25% due 8/01/2038 (d)(e) 2,050
1,000 Maricopa County, Arizona, Peoria Unified School District Number 11, GO, Second
Series, 5% due 7/01/2025 (c) 1,045
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 1,519
1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60%
due 7/01/2012 2,048
500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO,
Refunding, 7.50% due 7/01/2010 (c) 550
1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement,
GO (Saddle Mountain), Series A, 5% due 7/01/2014 1,024
1,000 Mesa, Arizona, IDA Revenue Bonds (Discovery Health Systems), Series A, 5.625%
due 1/01/2010 (g)(h) 1,052
1,000 Nogales, Arizona, Municipal Development Authority, Inc., Revenue Bonds, 5% due
6/01/2030 (a) 1,035
2,000 Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT,
Series 2007-1, 5.25% due 8/01/2038 (d)(e) 2,055
3,325 Phoenix, Arizona, Civic Improvement Corporation, Excise Tax Revenue Bonds (Civic
Plaza Expansion Project), Sub-Series A, 5% due 7/01/2035 (c) 3,437
600 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds,
AMT, Series B, 5.25% due 7/01/2032 (c) 617
2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding
Bonds, Junior Lien, 5.50% due 7/01/2020 (c) 2,656
2,000 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding
Bonds, Junior Lien, 5% due 7/01/2029 (g) 2,075
2,000 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 2007-2, 5.50% due
8/01/2038 (d)(e) 2,091
740 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C, 6.70% due 7/01/2021 780
990 Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C, 6.75% due 7/01/2031 1,040
1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter
Schools Project), Series O, 5% due 7/01/2026 963
390 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter
Schools Project II), Series A, 6.75% due 7/01/2011 (h) 429
585 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter
Schools Project II), Series A, 6.75% due 7/01/2021 618
1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A,
5.625% due 4/01/2014 (g) 1,021
3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding,
7.50% due 7/01/2009 (c) 3,257
1,250 Pinal County, Arizona, COP, 5% due 12/01/2026 1,265
1,250 Pinal County, Arizona, COP, 5% due 12/01/2029 1,261
500 Pinal County, Arizona, IDA, Wastewater Revenue Bonds (San Manuel Facilities
Project), AMT, 6.25% due 6/01/2026 541
2,000 Queen Creek Improvement District Number 001, Arizona, Special Assessment Bonds,
5% due 1/01/2032 1,994
1,500 Salt River Project, Arizona, Agriculture Improvement and Power District, Electric
System Revenue Refunding Bonds, Series A, 5% due 1/01/2035 1,557
2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80%
due 12/01/2011 (h) 2,437
1,195 Show Low, Arizona, IDA, Hospital Revenue Bonds (Navapache Regional Medical Center),
5% due 12/01/2035 (i) 1,193
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 (g) 1,614
1,500 Surprise Municipal Property Corporation, Arizona, Wastewater Development Impact
Fee Revenue Bonds, 4.90% due 4/01/2032 1,436
1,000 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT,
Series B, 5.35% due 6/01/2047 (d)(e) 1,041
1,000 Tucson, Arizona, IDA, Joint S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1,
5.10% due 7/01/2038 (d)(e) 1,020
1,000 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson
Inc. Project), Series A, 6.125% due 7/01/2010 (h)(i) 1,072
1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,148
2,000 University of Arizona, COP, Series B, 5% due 6/01/2028 (a) 2,055
1,275 Vistancia Community Facilities District, Arizona, GO, 6.75% due 7/15/2022 1,395
750 Vistancia Community Facilities District, Arizona, GO, 5.75% due 7/15/2024 801
2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional
Medical Center), Series A, 6% due 8/01/2033 2,116
1,000 Yavapai County, Arizona, IDA, Solid Waste Disposal Revenue Bonds (Waste Management
Inc. Project), AMT, Series A-1, 4.90% due 3/01/2028 951
1,775 Yuma County, Arizona, Library District, GO, 5% due 7/01/2026 (m) 1,863
Guam - 1.7% 1,000 Guam Government Waterworks Authority, Water and Wastewater System, Revenue
Refunding Bonds, 5.875% due 7/01/2035 1,057
Puerto Rico - 1 8.7% 1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
Refunding Bonds, Series CC, 5.50% due 7/01/2031 1,113
1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
Refunding Bonds, Series CC, 5.25% due 7/01/2032 (l) 1,117
1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
Refunding Bonds, Series CC, 5.25% due 7/01/2036 (l) 1,115
560 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Bonds, Series G, 5% due 7/01/2033 570
2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,037
1,165 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%
due 7/01/2013 (h) 1,245
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT, 5% due
7/01/2037 1,026
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 1,604
2,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding
Bonds, Series I, 5.25% due 7/01/2033 2,086
Total Municipal Bonds (Cost - $95,442) - 153.4% 97,506
Municipal Bonds Held in Trust (j)
Arizona - 14.6% 8,670 Arizona State University Revenue Bonds, 5.50% due 7/01/2012 (c)(h) 9,309
Puerto Rico - 1.7% 1,000 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2016 (g) 1,053
Total Municipal Bonds Held in Trust (Cost - $10,099) - 16.3% 10,362
Shares
Held Short-Term Securities
245 CMA Arizona Municipal Money Fund, 2.99% (f)(k) 245
Total Short-Term Securities (Cost - $245) - 0.4% 245
Total Investments (Cost - $105,786*) - 170.1% 108,113
Other Assets Less Liabilities - 1.0% 631
Liability for Trust Certificates, Including Interest Expense Payable - (7.6%) (4,850)
Preferred Stock, at Redemption Value - (63.5%) (40,320)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 63,574
===========
* The cost and unrealized appreciation (depreciation) of investments
as of July 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 101,080
==============
Gross unrealized appreciation $ 2,811
Gross unrealized depreciation (613)
--------------
Net unrealized appreciation $ 2,198
==============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHLMC Collateralized.
(e) FNMA/GNMA Collateralized.
(f) 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 (1,173) $ 29
(g) MBIA Insured.
(h) Prerefunded.
(i) Radian Insured.
(j) 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.
(k) Represents the current yield as of July 31, 2007.
(l) FSA Insured.
(m) XL Capital Insured.
(n) Represents a step bond.
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 and 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
(17 CFR 270.30a-3(d)) 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/ Robert C. Doll, Jr.
------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: September 20, 2007
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 (principal executive officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: September 20, 2007
By: /s/ Donald C. Burke
--------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: September 20, 2007