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 811-6718
Name of Fund: MuniYield Quality Fund II, 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 II, 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 II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
----------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.5% $ 1,400 Alaska State International Airports Revenue Bonds, Series B, 5.75% due 10/01/2019 (a) $ 1,553
----------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.0% 2,700 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (c) 2,943
----------------------------------------------------------------------------------------------------------------------------------
California - 26.1% 8,150 Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue
Refunding Bonds, Subordinate Lien, Series A, 5.319%** due 10/01/2025 (a) 6,211
3,800 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (f) 3,906
2,500 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente),
RIB, Series 26, 7.67% due 6/01/2022 (f)(l) 2,820
4,600 California State, GO, 5.125% due 2/01/2027 4,811
2,200 California State, GO, Refunding, 5.25% due 9/01/2010 (j) 2,361
165 California State, GO, Refunding, 5.25% due 9/01/2026 174
1,780 California State, GO, Refunding, 5.25% due 2/01/2030 (h) 1,891
2,800 California State, GO, Refunding, 5.25% due 2/01/2030 (i) 2,966
1,950 California State, GO, Refunding, ROLS, Series II-R-272, 7.346% due 2/01/2033 (k)(l) 2,159
2,750 California State, Various Purpose, GO, 5.25% due 11/01/2029 2,924
6,500 California State, Various Purpose, GO, 5.50% due 11/01/2033 7,088
15,000 East Side Union High School District, California, Santa Clara County, Capital
Appreciation, GO (Election of 2002), Series E, 5.15%** due 8/01/2029 (h) 4,617
2,770 Fairfield-Suisun, California, Unified School District, GO (Election of 2002),
5.50% due 8/01/2028 (i) 3,040
2,300 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (h)(j) 2,555
3,725 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.625% due 6/01/2013 (b)(j) 4,168
----------------------------------------------------------------------------------------------------------------------------------
Portfolio
Abbreviations
To simplify the listings of MuniYield Quality Fund II, 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)
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 II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
----------------------------------------------------------------------------------------------------------------------------------
$ 2,815 John Swett Unified School District, California, GO, Series A, 5.50% due 8/01/2026 (f) $ 3,042
7,050 Los Angeles, California, Unified School District, GO, Series A, 5% due 1/01/2028 (i) 7,357
2,900 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds
(Convention Center Project), Series A, 5.50% due 11/01/2029 (i) 3,202
1,250 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125% due 6/15/2033 (a) 1,293
6,000 Sacramento, California, Municipal Utility District, Electric Revenue Bonds, Series N,
5% due 8/15/2028 (i) 6,184
1,000 San Diego, California, Community College District, GO (Election of 2002), 5%
due 5/01/2030 (f) 1,045
950 Santa Monica, California, Community College District, GO (Election of 2002),
Refunding, Series C, 5% due 8/01/2029 (i) 993
1,325 Tamalpais, California, Union High School District, GO (Election of 2001), 5%
due 8/01/2028 (f) 1,378
1,000 University of California, Limited Project Revenue Bonds, Series B, 5% due
5/15/2033 (f) 1,037
1,350 University of California Revenue Bonds (Multiple Purpose Projects), Series Q, 5%
due 9/01/2034 (f) 1,394
----------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.0% 1,150 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (n) 1,248
1,200 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2027 (k) 1,271
675 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2033 (k) 709
1,475 Colorado Housing and Finance Authority, Revenue Refunding Bonds (S/F Program),
AMT, Series B-2, 6.80% due 2/01/2031 (i) 1,532
7,500 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue
Refunding Bonds, Series B, 5.607%** due 9/01/2032 (i) 1,873
10,975 Northwest Parkway, Colorado, Public Highway Authority, Capital Appreciation
Revenue Bonds, Senior Convertible, Series C, 5.327%** due 6/15/2025 (f) 9,424
1,735 Northwest Parkway, Colorado, Public Highway Authority Revenue Bonds, Series A,
5.50% due 6/15/2021 (a) 1,898
----------------------------------------------------------------------------------------------------------------------------------
Connecticut - 3.3% 9,325 Connecticut State Resource Recovery Authority, Revenue Refunding Bonds, DRIVERS,
Series 187, 7.669% due 11/15/2011 (i)(l) 10,005
----------------------------------------------------------------------------------------------------------------------------------
Florida - 1.9% 4,575 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds,
Series A, 5.21%** due 10/01/2034 (i) 1,057
4,495 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds,
Series A, 5.22%** due 10/01/2035 (i) 985
3,575 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125%
due 1/01/2032 (c) 3,741
----------------------------------------------------------------------------------------------------------------------------------
Georgia - 5.2% 5,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B, 5.25%
due 1/01/2033 (f) 5,300
5,000 Atlanta, Georgia, Airport Revenue Refunding Bonds, Series A, 5.875% due
1/01/2017 (c) 5,436
2,585 Atlanta, Georgia, Development Authority, Student Housing Revenue Bonds (Georgia
State University), 5% due 9/01/2035 (h) 2,670
2,170 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (f) 2,311
----------------------------------------------------------------------------------------------------------------------------------
Illinois - 20.3% 2,300 Chicago, Illinois, O'Hare International Airport, General Revenue Bonds, Third Lien,
Series A, 5.25% due 1/01/2026 (i) 2,471
2,900 Chicago, Illinois, O'Hare International Airport, General Revenue Bonds, Third Lien,
Series A, 5% due 1/01/2033 (c) 2,996
5,200 Chicago, Illinois, O'Hare International Airport, Revenue Bonds, 3rd Lien, AMT,
Series B-2, 5.75% due 1/01/2023 (f) 5,708
2,200 Chicago, Illinois, O'Hare International Airport, Revenue Bonds, 3rd Lien, AMT,
Series B-2, 6% due 1/01/2029 (h) 2,442
4,750 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, DRIVERS,
AMT, Series 844Z, 7.624% due 7/01/2010 (i)(l) 5,310
2,830 Chicago, Illinois, Park District, GO, Refunding, Series C, 5.50% due 1/01/2021 (c) 3,089
MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
----------------------------------------------------------------------------------------------------------------------------------
$ 3,000 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(j) $ 3,253
10,000 Illinois Regional Transportation Authority Revenue Bonds, 6.50% due 7/01/2026 (i) 12,857
21,675 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5.264%** due 6/15/2030 (a) 18,649
3,625 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax, Revenue
Refunding Bonds, DRIVERS, Series 269, 8.149% due 6/15/2023 (i)(l) 4,436
----------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.1% 3,750 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2028 (c) 4,005
5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (c) 5,329
----------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.6% 1,680 Sedgwick and Shawnee Counties, Kansas, S/F Mortgage-Backed Revenue Refunding Bonds,
AMT, Series A-2, 6.45% due 12/01/2033 (e)(i) 1,747
----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.6% 2,330 Jefferson Parish, Louisiana, Home Mortgage Authority, S/F Mortgage Revenue Bonds,
AMT, Series B-1, 6.65% due 12/01/2033 (e)(i) 2,399
3,900 Louisiana Local Government, Environmental Facilities, Community Development
Authority Revenue Bonds (Capital Projects and Equipment Acquisition), Series A, 6.30%
due 7/01/2030 (a) 4,295
3,185 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31%** due 12/01/2027 (a) 1,026
4,650 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5.25% due 7/15/2028 (a) 4,875
1,300 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital Revenue
Bonds (Terrebonne General Medical Center Project), 5.50% due 4/01/2033 (a) 1,402
----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 13.9% 1,535 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2032 1,581
1,375 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2035 1,420
8,600 Massachusetts Bay Transportation Authority, Special Assessment Revenue Refunding
Bonds, Series A, 5% due 7/01/2031 8,981
2,100 Massachusetts State, Consolidated Loan, GO, Series C, 5% due 9/01/2025 2,213
10,000 Massachusetts State, HFA, Housing Revenue Bonds, DRIVERS, AMT, Series 982, 7.145%
due 1/01/2011 (f)(l) 10,458
2,785 Massachusetts State Port Authority, Special Facilities Revenue Bonds, DRIVERS, AMT,
Series 501, 7.624% due 7/01/2009 (a)(l) 3,047
8,100 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (f) 8,475
1,800 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25%
due 1/01/2014 (c)(j) 1,972
840 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
` Series B, 5.125% due 8/01/2027 (i) 879
2,700 University of Massachusetts Building Authority, Facilities Revenue Bonds, Senior
Series 4-A, 5.125% due 11/01/2034 (i) 2,832
----------------------------------------------------------------------------------------------------------------------------------
Michigan - 8.3% 8,900 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5.25%
due 7/01/2032 (i) 9,397
3,250 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5% due 7/01/2034 (i) 3,345
1,300 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 1,354
2,685 Michigan State, HDA, Revenue Refunding Bonds, Series C, 5.90% due 12/01/2015 (d)(f) 2,759
1,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Project), AMT, Series A, 5.50% due 6/01/2030 (h) 1,059
3,900 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Project), AMT, Series C, 5.45% due 12/15/2032 (h) 4,084
2,625 Wayne County, Michigan, Airport Authority Revenue Bonds, DRIVERS, AMT, Series 986,
7.126% due 6/01/2013 (i)(l) 2,892
----------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.1% 250 Minnesota State Municipal Power Agency, Electric Revenue Bonds, 5% due 10/01/2035 255
----------------------------------------------------------------------------------------------------------------------------------
MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
----------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.0% $ 4,000 Saint Louis County, Missouri, Pattonville R-3 School District, GO (Missouri Direct
Deposit Program), 5.75% due 3/01/2010 (c)(j) $ 4,380
1,500 Saint Louis County, Missouri, Pattonville R-3 School District, GO (Missouri Direct
Deposit Program), 6% due 3/01/2010 (c)(j) 1,657
----------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.4% 2,800 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50% due 9/01/2033 (k) 2,940
1,500 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2,
5% due 7/01/2030 (c) 1,548
2,700 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2,
5% due 7/01/2036 (c) 2,775
----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 7.0% 1,070 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 1,129
500 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 517
2,400 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5% due
7/01/2029 (i) 2,499
4,800 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (i) 5,119
2,300 New Jersey EDA, Revenue Bonds, ROLS, Series II-R-309-1, 7.843% due 6/15/2024
(g)(l)(m) 2,639
2,000 New Jersey EDA, Revenue Bonds, ROLS, Series II-R-309-2, 7.843% due 6/15/2031
(g)(l)(m) 2,302
2,600 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2028 2,716
4,000 New Jersey EDA, School Facilities Construction Revenue Bonds, Series P, 5.125%
due 9/01/2028 4,183
----------------------------------------------------------------------------------------------------------------------------------
New Mexico - 2.3% 6,295 New Mexico State Highway Commission, Tax Revenue Bonds, Senior Sub-Lien, Series A, 6%
due 6/15/2010 (f)(j) 6,934
----------------------------------------------------------------------------------------------------------------------------------
New York - 9.1% 1,800 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2032 (c) 1,863
9,280 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%
due 8/01/2009 (f)(j) 10,162
2,025 New York City, New York, City Municipal Water Finance Authority, Water and Sewer
System, Revenue Refunding Bonds, Series A, 5% due 6/15/2035 (i) 2,092
5,000 New York State Dormitory Authority, Revenue Refunding Bonds (State University
Educational Facilities), 5.75% due 5/15/2010 (c)(j) 5,506
7,115 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1,
5.25% due 6/01/2022 (a) 7,624
----------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.3% 5,120 Plain, Ohio, Local School District, GO, Refunding, 6% due 6/01/2011 (c)(j) 5,725
1,170 Plain, Ohio, Local School District, GO, Refunding, 6% due 12/01/2020 (c) 1,300
----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 6.3% 3,335 Delaware River Port Authority of Pennsylvania and New Jersey Revenue Bonds, RIB,
Series 396, 8.683% due 1/01/2019 (f)(l) 3,918
6,175 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds
(The School District of Philadelphia Project), 5% due 6/01/2033 (f) 6,366
3,230 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue
Bonds, Series B, 5.50% due 10/01/2020 (f) 3,535
4,500 Philadelphia, Pennsylvania, School District, GO, Series B, 5.625% due 8/01/2012
(c)(j) 5,031
----------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 1.4% 4,010 Rhode Island State Health and Educational Building Corporation, Higher Education
Facilities Revenue Bonds (University of Rhode Island), Series A, 5.70%
due 9/15/2009 (i)(j) 4,360
----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.1% 1,363 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue
Bonds, ROLS, Series II-R-481X-1, 7.366% due 12/01/2028 (l)(m) 1,548
1,212 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue
Bonds, ROLS, Series II-R-481X-2, 7.366% due 12/01/2029 (l)(m) 1,371
440 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue
Bonds, ROLS, Series II-R-481X-3, 7.366% due 12/01/2030 (l)(m) 497
----------------------------------------------------------------------------------------------------------------------------------
MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
State Amount Municipal Bonds Value
----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.4% $ 6,500 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment
Corporation), 5.875% due 10/01/2024 (a) $ 7,091
----------------------------------------------------------------------------------------------------------------------------------
Texas - 11.2% 2,730 Corpus Christi, Texas, Utility System Revenue Refunding Bonds, Series A, 6%
due 7/15/2010 (f)(j) 3,011
3,250 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT,
Series 202, 8.629% due 11/01/2028 (c)(l) 3,707
4,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Good Shepherd Medical Center Project), 6.875% due 10/01/2020 (k) 4,493
1,900 Houston, Texas, Airport System Revenue Refunding Bonds, Sub-Lien, Series B, 5.50%
due 7/01/2030 (f) 2,018
9,345 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.51%** due 8/15/2030 (c) 2,582
3,500 Lower Colorado River Authority, Texas, PCR (Samsung Austin Semiconductor),
AMT, 6.375% due 4/01/2027 3,671
4,925 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (i) 5,128
4,800 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.75% due 8/15/2038 (a) 5,285
3,600 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.50% due 8/15/2039 (a) 3,897
----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.8% 2,100 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion
Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 2,275
----------------------------------------------------------------------------------------------------------------------------------
Washington - 7.3% 2,150 King County, Washington, Sewer Revenue Refunding Bonds, Series B, 5.50%
due 1/01/2027 (f) 2,307
7,470 Port of Seattle, Washington, Revenue Bonds, AMT, Series B, 6% due 2/01/2016 (i) 8,076
1,600 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%
due 12/01/2034 (a) 1,697
6,150 Seattle, Washington, Municipal Light and Power Revenue Bonds, 6% due 10/01/2009
(i)(j) 6,744
3,100 Seattle, Washington, Municipal Light and Power Revenue Refunding Bonds, 5%
due 11/01/2028 (f) 3,208
----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.9% 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%
due 7/01/2024 2,624
----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Cost - $435,941) - 151.4% 455,914
----------------------------------------------------------------------------------------------------------------------------------
Shares
Held Short-Term Securities
----------------------------------------------------------------------------------------------------------------------------------
1,100 Merrill Lynch Institutional Tax-Exempt Fund (o) 1,100
----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost - $1,100) - 0.4% 1,100
----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $437,041*) - 151.8% 457,014
Other Assets Less Liabilities - 1.4% 4,090
Preferred Stock, at Redemption Value - (53.2%) (160,006)
---------
Net Assets Applicable to Common Stock - 100.0% $ 301,098
=========
* 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 $ 437,041
=========
Gross unrealized appreciation $ 20,897
Gross unrealized depreciation (924)
---------
Net unrealized appreciation $ 19,973
=========
MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
** Represents a zero coupon or a step bond; the interest rate shown is the
effective yield at the time of purchase.
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) FHA Insured.
(e) FNMA/GNMA Collateralized.
(f) FSA Insured.
(g) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(h) XL Capital Insured.
(i) MBIA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(m) Assured Guaranty Insured.
(n) Escrowed to maturity.
(o) 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 (300) $ 27
--------------------------------------------------------------------------
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 $ 30,000 $ (396)
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 $ (365)
============
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 II, Inc.
By: /s/ Robert C. Doll, Jr.
--------------------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Quality Fund II, 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 II, Inc.
Date: March 20, 2006
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Financial Officer
MuniYield Quality Fund II, Inc.
Date: March 20, 2006