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: BlackRock 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, BlackRock 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: 10/31/2007
Date of reporting period: 11/01/06 - 01/31/07
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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Alabama - 0.7% $ 2,000 Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 4.75%
due 1/01/2025 $ 2,028
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Arizona - 1.0% 2,700 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2014 (c)(g) 2,984
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California - 24.6% 7,150 Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue
Refunding Bonds, Subordinate Lien, Series A, 5.33% due 10/01/2012 (a)(n) 5,808
3,800 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (f) 3,961
2,200 California State, GO, Refunding, 5.25% due 9/01/2010 (g) 2,318
1,500 California State, GO, Refunding, 5.125% due 6/01/2027 1,553
1,600 California State Public Works Board, Lease Revenue Bonds (Department of Corrections),
Series C, 5% due 6/01/2025 1,664
2,200 California State University, Systemwide Revenue Bonds, Series A, 5% due 11/01/2035 (c) 2,296
2,750 California State, Various Purpose, GO, 5.25% due 11/01/2029 2,921
6,500 California State, Various Purpose, GO, 5.50% due 11/01/2033 7,059
2,500 Chabot-Las Positas, California, Community College District, GO (Election of 2004),
Series B, 4.812% due 8/01/2025 (a)(n) 1,041
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)(n) 4,964
1,370 East Side Union High School District, California, Santa Clara County, GO (Election of
2002), Series D, 5% due 8/01/2026 (h) 1,444
2,770 Fairfield-Suisun, California, Unified School District, GO (Election of 2002), 5.50%
due 8/01/2028 (i) 3,035
2,300 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50% due 6/01/2013 (g)(h) 2,523
3,725 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.625% due 6/01/2013 (b)(g) 4,101
2,815 John Swett Unified School District, California, GO, Series A, 5.50% due 8/01/2026 (f) 3,012
4,900 Los Angeles, California, Unified School District, GO, Series A, 5%
due 7/01/2013 (g)(i) 5,252
2,600 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2029 (c) 2,723
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Portfolio Abbreviations
To simplify the listings of BlackRock 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)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 1,475 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2036 (c) $ 1,543
2,300 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (c) 2,394
2,900 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds
(Convention Center Project), Series A, 5.50% due 11/01/2029 (i) 3,209
1,250 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125% due 6/15/2033 (a) 1,307
5,000 Sacramento, California, Municipal Utility District, Electric Revenue Bonds, Series N,
5% due 8/15/2028 (i) 5,176
1,350 Sacramento, California, Unified School District, GO (Election of 2002), 5%
due 7/01/2030 (i) 1,426
1,325 Tamalpais, California, Union High School District, GO (Election of 2001), 5%
due 8/01/2028 (f) 1,385
2,025 Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5% due 8/01/2030 (i) 2,138
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Colorado - 6.0% 1,150 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (d) 1,231
1,200 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2027 (k) 1,277
675 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities
Inc.), Series A, 5.50% due 12/01/2033 (k) 716
1,150 Colorado Housing and Finance Authority, Revenue Refunding Bonds (S/F Program), AMT,
Series B-2, 6.80% due 2/01/2031 (i) 1,190
7,500 E-470 Public Highway Authority, Colorado, Capital Appreciation Revenue Refunding
Bonds, Series B, 5.607% due 9/01/2032 (i)(n) 2,025
10,975 Northwest Parkway, Colorado, Public Highway Authority, Capital Appreciation Revenue
Bonds, Senior Convertible, Series C, 5.327% due 6/15/2011 (f)(n) 9,907
1,735 Northwest Parkway, Colorado, Public Highway Authority Revenue Bonds, Series A, 5.50%
due 6/15/2021 (a) 1,868
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District of 4,710 District of Columbia, COP, 5% due 1/01/2025 (c) 4,955
Columbia - 1.6%
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Florida - 2.3% 1,250 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25% due 11/15/2036 1,320
1,700 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds (Adventist Health System), Series G, 5.125% due 11/15/2032 1,770
3,575 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125%
due 1/01/2032 (c) 3,748
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Georgia - 6.8% 5,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B, 5.25%
due 1/01/2033 (f) 5,335
5,000 Atlanta, Georgia, Airport Revenue Refunding Bonds, Series A, 5.875% due 1/01/2017 (c) 5,316
2,850 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2034 (f) 2,984
800 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2033 (i) 829
4,075 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2039 (i) 4,225
1,880 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (f) 2,014
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Illinois - 15.7% 5,200 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 5.75% due 1/01/2023 (f) 5,679
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 2,200 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 6% due 1/01/2029 (h) $ 2,451
2,460 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(g) 2,677
10,000 Illinois Regional Transportation Authority Revenue Bonds, 6.50% due 7/01/2026 (i) 12,938
21,675 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5.264%
due 6/15/2010 (a)(n) 19,995
3,500 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Bonds (McCormick Place Expansion), Series A, 5% due 12/15/2028 (i) 3,645
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Indiana - 4.2% 3,350 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5%
due 6/01/2028 (f) 3,498
3,750 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2028 (c) 4,013
5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25%
due 6/01/2029 (c) 5,351
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Louisiana - 7.6% 1,850 Jefferson Parish, Louisiana, Home Mortgage Authority, S/F Mortgage Revenue Bonds, AMT,
Series B-1, 6.65% due 12/01/2033 (e)(i) 1,924
5,500 Lafayette, Louisiana, Utilities Revenue Bonds, 5% due 11/01/2028 (i) 5,770
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) 4,632
1,800 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue Bonds,
Series B, 5% due 6/01/2023 (a) 1,904
3,185 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31% due 12/01/2027 (a)(n) 1,094
4,200 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax,
Sub-Series A, 5.25% due 7/15/2028 (a) 4,457
1,750 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project), AMT,
4.70% due 11/01/2036 (a) 1,745
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) 1,400
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Massachusetts - 3.0% 5,800 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (f) 6,117
1,800 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25%
due 1/01/2014 (c)(g) 1,952
840 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (i) 880
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Michigan - 2.6% 1,500 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B, 5%
due 7/01/2036 (c) 1,577
1,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 1,043
1,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.50% due 6/01/2030 (h) 1,072
3,900 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series C, 5.45% due 12/15/2032 (h) 4,131
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Minnesota - 0.5% 1,350 Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), Series B, 5.15% due 12/01/2038 (e)(o) 1,403
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BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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Missouri - 1.9% $ 4,000 Saint Louis County, Missouri, Pattonville R-3 School District, GO (Missouri Direct
Deposit Program), 5.75% due 3/01/2010 (c)(g) $ 4,264
1,500 Saint Louis County, Missouri, Pattonville R-3 School District, GO (Missouri Direct
Deposit Program), 6% due 3/01/2010 (c)(g) 1,610
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Nebraska - 0.4% 1,300 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series A, 5%
due 4/01/2033 (f) 1,356
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Nevada - 3.2% 2,800 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project), Series
A, 5.50% due 9/01/2033 (k) 2,991
1,500 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2030 (c) 1,563
2,700 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2036 (c) 2,807
2,200 Clark County, Nevada, IDR (Southwest Gas Corp. Project), AMT, Series A, 4.75%
due 9/01/2036 (c) 2,196
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New Jersey - 6.0% 1,070 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 1,150
500 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 526
2,400 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5% due 7/01/2029 (i) 2,515
4,800 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%
due 7/01/2033 (i) 5,128
4,250 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2028 4,493
4,000 New Jersey EDA, School Facilities Construction Revenue Bonds, Series P, 5.125%
due 9/01/2028 4,241
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New Mexico - 2.2% 6,295 New Mexico State Highway Commission, Tax Revenue Bonds, Senior Sub-Lien, Series A, 6%
due 6/15/2010 (f)(g) 6,725
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New York - 10.4% 1,800 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2032 (c) 1,890
7,500 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2035 7,879
9,280 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%
due 8/01/2009 (f)(g) 9,911
5,000 New York State Dormitory Authority, Revenue Refunding Bonds (State University
Educational Facilities), 5.75% due 5/15/2010 (c)(g) 5,357
6,115 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25%
due 6/01/2022 (a) 6,514
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Ohio - 4.6% 7,100 Ohio State Air Quality, Development Authority Revenue Bonds (Dayton Power and Light
Company Project), 4.80% due 9/01/2036 (c) 7,156
5,120 Plain, Ohio, Local School District, GO, Refunding, 6% due 6/01/2011 (c)(g) 5,576
1,170 Plain, Ohio, Local School District, GO, Refunding, 6% due 12/01/2020 (c) 1,267
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Pennsylvania - 3.1% 5,500 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds (The
School District of Philadelphia Project), 5% due 6/01/2013 (f)(g) 5,874
3,230 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue Bonds,
Series B, 5.50% due 10/01/2020 (f) 3,471
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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 (g)(i) 4,242
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South 2,450 Berkeley County, South Carolina, School District, Installment Lease Revenue Bonds
Carolina - 4.7% (Securing Assets for Education Project), 5.125% due 12/01/2030 2,582
2,075 Kershaw County, South Carolina, Public Schools Foundation, Installment Power Revenue
Refunding Bonds, 5% due 12/01/2029 (b) 2,177
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Value
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$ 3,000 Scago Educational Facilities Corporation for Pickens County School District, South
Carolina, Revenue Bonds, 5% due 12/01/2031 (f) $ 3,142
6,100 South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A, 5%
due 10/01/2033 (a) 6,340
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Tennessee - 0.7% 2,150 Chattanooga, Tennessee, IDB, Lease Rent Revenue Bonds (Southside Redevelopment
Corporation), 5.875% due 10/01/2024 (a) 2,290
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Texas - 10.7% 2,000 Corpus Christi, Texas, Utility System Revenue Refunding Bonds, Series A, 6%
due 7/15/2010 (f)(g) 2,143
4,000 Gregg County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds
(Good Shepherd Medical Center Project), 6.875% due 10/01/2010 (g)(k) 4,445
9,345 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.51% due 8/15/2030 (c)(n) 2,772
8,800 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.58% due 8/15/2035 (n) 1,942
3,915 Lewisville, Texas, Independent School District, Capital Appreciation and School
Building, GO, Refunding, 4.67% due 8/15/2024 (c)(n) 1,714
3,500 Lower Colorado River Authority, Texas, PCR (Samsung Austin Semiconductor), AMT, 6.375%
due 4/01/2027 3,583
4,925 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (i) 5,168
1,300 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional
Educators Program), AMT, Series A-1, 5.50% due 12/01/2039 (e)(o) 1,383
4,800 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First
Tier, Series A, 5.75% due 8/15/2038 (a) 5,199
3,600 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First
Tier, Series A, 5.50% due 8/15/2039 (a) 3,851
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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) 2,286
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Washington - 5.4% 7,470 Port of Seattle, Washington, Revenue Bonds, AMT, Series B, 6% due 2/01/2016 (i) 7,949
1,600 Port of Tacoma, Washington, Revenue Refunding Bonds, Series A, 5.25%
due 12/01/2014 (a)(g) 1,750
6,150 Seattle, Washington, Municipal Light and Power Revenue Bonds, 6% due 10/01/2009 (g)(i) 6,557
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Puerto Rico - 1.2% 3,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%
due 7/01/2029 3,524
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Total Municipal Bonds (Cost - $383,329) - 133.3% 402,822
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Total Municipal Bonds Held in Trust (j)
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California - 3.1% 5,000 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente),
Series A, 5.50% due 6/01/2022 (d)(f) 5,208
3,900 California State, GO, Refunding, 5.25% due 2/01/2033 (k) 4,160
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Georgia - 5.8% 17,000 Atlanta, Georgia, Airport Passenger Facility Charge, Subordinate Lien Revenue
Refunding Bonds, Series C, 5% due 1/01/2033 (f) 17,693
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Illinois - 5.9% 9,500 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.50% due 1/01/2022 (i) 10,013
7,250 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75% due 6/15/2023 (i) 7,905
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BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
Face
State Amount Municipal Bonds Held in Trust (j) Value
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 8.8% $20,000 Massachusetts State HFA, Housing Revenue Bonds (Rental Mortgage), AMT, Series F, 5.25%
due 1/01/2046 (f) $ 20,636
2,900 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines
Inc. Project), AMT, 3,059
Series A, 5.50% due 1/01/2016 (a)
2,670 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines
Inc. Project), AMT, Series A, 5.50% due 1/01/2019 (a) 2,816
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New Jersey - 3.1% 4,600 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 (l) 4,938
4,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 (l) 4,327
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Pennsylvania - 2.3% 6,670 Delaware River Port Authority of Pennsylvania and New Jersey Revenue Bonds, 6%
due 1/01/2017 (f) 7,057
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South 2,725 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds
Carolina - 5.6% (Charleston County School District), 5.25% due 12/01/2028 (l) 2,930
2,425 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds
(Charleston County School District), 5.25% due 12/01/2029 (l) 2,607
880 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds
(Charleston County School District), 5.25% due 12/01/2030 (l) 946
10,000 South Carolina Transportation Infrastructure Bank Revenue Bonds, Series A, 5%
due 10/01/2033 (a) 10,394
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Texas - 2.3% 6,500 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A, 6%
due 11/01/2028 (c) 6,821
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Municipal Bonds Held in Trust (Cost - $109,429) - 36.9% 111,510
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Shares
Held Short-Term Securities
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8,300 Merrill Lynch Institutional Tax-Exempt Fund 3.46% (m)(p) 8,300
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Total Short-Term Securities (Cost - $8,300) - 2.7% 8,300
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Total Investments (Cost - $501,058*) - 172.9% 522,632
Liabilities in Excess of Other Assets - (2.3%) (7,094)
Liability for Trust Certificates, Including Interest Expense Payable - (17.6%) (53,266)
Preferred Stock, at Redemption Value - (53.0%) (160,080)
----------
Net Assets Applicable to Common Stock - 100.0% $ 302,192
==========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 448,285
=========
Gross unrealized appreciation $ 21,627
Gross unrealized depreciation (290)
---------
Net unrealized appreciation $ 21,337
=========
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) Escrowed to maturity.
(e) FNMA/GNMA Collateralized.
(f) FSA Insured.
BlackRock MuniYield Quality Fund II, Inc.
Schedule of Investments as of January 31, 2007 (in Thousands)
(g) Prerefunded.
(h) XL Capital Insured.
(i) MBIA 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) Radian Insured.
(l) Assured Guaranty Insured.
(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
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund 2,385 $ 36
--------------------------------------------------------------------------
(n) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(o) FHLMC Collateralized.
(p) Represents the current yield as of January 31, 2007.
o Forward interest rate swaps outstanding as of January 31, 2007 were as
follows:
------------------------------------------------------------------------------------------------
Notional Unrealized
Amount Appreciation
------------------------------------------------------------------------------------------------
Pay a fixed rate of 3.728% and receive a floating rate
based on 1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires February 2017 $ 20,000 $ 82
Pay a fixed rate of 3.777% and receive a floating rate
based on 1-week Bond Market Association rate
Broker, Citibank N.A.
Expires April 2017 $ 5,000 6
Pay a fixed rate of 3.872% and receive a floating rate
based on 1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires February 2022 $ 8,000 26
Pay a fixed rate of 3.676% and receive a floating rate
based on 1-week Bond Market Association rate
Broker, JPMorgan Chase
Expires March 2022 $ 17,000 403
------------------------------------------------------------------------------------------------
Total $ 517
=====
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) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the registrant
was migrated to BlackRock's trading and compliance monitoring systems,
and various personnel changes occurred. In conjunction with these
business improvements, there were no changes in the registrants internal
control over financial reporting (as defined in Rule 30a-3(d) under Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year of
the period covered by this report that has materially affected, or is
reasonably likely to 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 II, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniYield Quality Fund II, Inc.
Date: March 26, 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
BlackRock MuniYield Quality Fund II, Inc.
Date: March 26, 2007
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
BlackRock MuniYield Quality Fund II, Inc.
Date: March 26, 2007