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 811-06501

 

Name of Fund: BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Michigan Quality Fund II, 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: 07/31/2011

 

Date of reporting period: 04/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2011 (Unaudited)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 134.9%

 

 

 

 

 

 

 

Corporate — 12.2%

 

 

 

 

 

 

 

Delta County EDC, Refunding RB, Mead
Westvaco-Escanaba, Series A, 6.25%,
4/15/12 (a)

 

$

2,420

 

$

2,553,294

 

Dickinson County EDC Michigan,
Refunding RB, International Paper Co.
Project, Series A, 5.75%, 6/01/16

 

 

2,500

 

 

2,528,525

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, Series A,
AMT (NPFGC), 5.55%, 9/01/29

 

 

9,500

 

 

9,500,950

 

Monroe County EDC Michigan,
Refunding RB, Detroit Edison Co.
Project, Series AA (NPFGC), 6.95%,
9/01/22

 

 

3,805

 

 

4,597,239

 

 

 

 

 

 

 

 

 

 

 

 

19,180,008

 

County/City/Special District/
School District — 33.0%

 

 

 

 

 

 

 

Adrian City School District Michigan, GO
(AGM), 5.00%, 5/01/14 (a)

 

 

2,400

 

 

2,688,096

 

Allendale Public School District
Michigan, GO, School Building and
Site, Series A (AGM), 5.50%, 5/01/16

 

 

1,000

 

 

1,139,820

 

Bay City School District Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/36

 

 

1,490

 

 

1,464,938

 

Charter Township of Canton Michigan,
GO, Capital Improvement (AGM):

 

 

 

 

 

 

 

5.00%, 4/01/25

 

 

1,250

 

 

1,285,925

 

5.00%, 4/01/26

 

 

1,250

 

 

1,277,562

 

5.00%, 4/01/27

 

 

500

 

 

513,375

 

City of Oak Park Michigan, GO, Street
Improvement (NPFGC), 5.00%,
5/01/30

 

 

600

 

 

607,146

 

County of Genesee Michigan, GO,
Refunding, Series A (NPFGC), 5.00%,
5/01/19

 

 

400

 

 

420,760

 

County of Genesee Michigan, GO, Water
Supply System (NPFGC), 5.13%,
11/01/33

 

 

500

 

 

492,450

 

County of Wayne Michigan, GO, Airport
Hotel, Detroit Metropolitan Airport,
Series A (NPFGC), 5.00%, 12/01/30

 

 

1,180

 

 

1,051,274

 

Dearborn Brownfield Redevelopment
Authority, GO, Limited Tax,
Redevelopment, Series A (AGC),
5.50%, 5/01/39

 

 

2,000

 

 

2,020,620

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Detroit City School District Michigan,
GO, School Building & Site
Improvement (FGIC):

 

 

 

 

 

 

 

Series A, 5.38%, 5/01/13 (a)

 

$

1,480

 

$

1,617,152

 

Series B, 5.00%, 5/01/28

 

 

1,900

 

 

1,812,068

 

Eaton Rapids Public Schools Michigan,
GO, School Building & Site (AGM),
5.25%, 5/01/23

 

 

2,000

 

 

2,141,800

 

Gibraltar School District Michigan, GO,
School Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

3,065

 

 

3,432,923

 

(NPFGC), 5.00%, 5/01/28

 

 

585

 

 

589,703

 

Grand Blanc Community Schools
Michigan, GO (NPFGC):

 

 

 

 

 

 

 

5.63%, 5/01/17

 

 

1,000

 

 

1,020,700

 

5.63%, 5/01/18

 

 

1,000

 

 

1,020,180

 

5.63%, 5/01/19

 

 

1,100

 

 

1,121,813

 

Grand Rapids Building Authority
Michigan, RB, Series A (AMBAC),
5.50%, 10/01/12 (a)

 

 

665

 

 

712,455

 

Gull Lake Community School District,
GO, Refunding (AGM), 4.00%,
5/01/26

 

 

615

 

 

577,227

 

Harper Creek Community School District
Michigan, GO, Refunding (AGM),
5.00%, 5/01/22

 

 

1,000

 

 

1,055,470

 

Harper Woods School District Michigan,
GO, Refunding, School Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

215

 

 

240,469

 

(NPFGC), 5.00%, 5/01/34

 

 

10

 

 

9,932

 

Haslett Public School District Michigan,
GO, Building & Site (NPFGC), 5.63%,
11/01/11 (a)

 

 

1,275

 

 

1,309,157

 

Jonesville Community Schools Michigan,
GO, Refunding (NPFGC), 5.00%,
5/01/29

 

 

1,085

 

 

1,076,092

 

L’Anse Creuse Public Schools Michigan,
GO, School Building & Site (AGM):

 

 

 

 

 

 

 

5.00%, 5/01/12

 

 

400

 

 

417,400

 

5.00%, 5/01/25

 

 

1,000

 

 

1,030,530

 

5.00%, 5/01/26

 

 

1,050

 

 

1,056,426

 

5.00%, 5/01/35

 

 

2,000

 

 

1,975,220

 

 

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:

 

 

ACA

ACA Financial Guaranty Corp.

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

EDC

Economic Development Corp.

FGIC

Financial Guaranty Insurance Co.

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HDA

Housing Development Authority

NPFGC

National Public Finance Guarantee Corp.

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC.

APRIL 30, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

County/City/Special District/School

 

 

 

 

 

 

 

District (concluded)

 

 

 

 

 

 

 

Lincoln Consolidated School District
Michigan, GO, Refunding (NPFGC),
4.63%, 5/01/28

 

$

2,325

 

$

2,264,875

 

Livonia Public Schools School District
Michigan, GO, Refunding, Series A
(NPFGC), 5.00%, 5/01/24

 

 

500

 

 

504,435

 

Ludington Area School District Michigan,
GO (NPFGC), 5.25%, 5/01/23

 

 

1,440

 

 

1,524,240

 

Michigan State Building Authority, RB,
Facilities Program, Series H (AGM),
5.00%, 10/15/26

 

 

3,000

 

 

3,035,010

 

New Haven Community Schools
Michigan, GO, Refunding, School
Building & Site (AGM), 5.00%,
5/01/23

 

 

500

 

 

518,435

 

New Lothrop Area Public Schools
Michigan, GO, School Building & Site
(AGM), 5.00%, 5/01/35

 

 

1,200

 

 

1,185,132

 

Pontiac Tax Increment Finance Authority
Michigan, Tax Allocation Bonds,
Refunding, Tax Increment
Development (ACA), 5.38%,
6/01/12 (a)

 

 

640

 

 

679,155

 

Reed City Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/14 (a)

 

 

1,000

 

 

1,122,260

 

Rochester Community School District,
GO (NPFGC), 5.00%, 5/01/19

 

 

265

 

 

288,802

 

Southfield Public Schools Michigan, GO,
School Building & Site, Series B
(AGM), 5.00%, 5/01/14 (a)

 

 

1,000

 

 

1,120,990

 

Sparta Area Schools Michigan, GO,
School Building & Site (FGIC), 5.00%,
5/01/14 (a)

 

 

1,000

 

 

1,118,460

 

Thornapple Kellogg School District
Michigan, GO, School Building & Site
(NPFGC), 5.00%, 5/01/32

 

 

1,500

 

 

1,496,130

 

Van Dyke Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/28

 

 

750

 

 

762,848

 

Zeeland Public Schools Michigan, GO,
School Building & Site (NPFGC),
5.00%, 5/01/29

 

 

1,230

 

 

1,238,856

 

 

 

 

 

 

 

 

 

 

 

 

52,038,311

 

Education — 10.9%

 

 

 

 

 

 

 

Ferris State University, Refunding RB,
General (AGM):

 

 

 

 

 

 

 

4.50%, 10/01/23

 

 

1,360

 

 

1,363,359

 

4.50%, 10/01/24

 

 

1,595

 

 

1,580,214

 

4.50%, 10/01/25

 

 

1,405

 

 

1,370,437

 

Fraser Public School District, GO, School
Building & Site (AGM), 5.00%,
5/01/25

 

 

1,255

 

 

1,281,669

 

Goodrich Area School District, GO,
School Building & Site (Q-SBLF) (b):

 

 

 

 

 

 

 

5.50%, 5/01/32

 

 

400

 

 

408,956

 

5.50%, 5/01/36

 

 

800

 

 

801,216

 

5.50%, 5/01/41

 

 

1,000

 

 

1,004,580

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Education (concluded)

 

 

 

 

 

 

 

Michigan Higher Education Facilities
Authority, RB, Limited Obligation,
Hillsdale College Project, 5.00%,
3/01/35

 

$

1,125

 

$

1,001,475

 

Michigan Higher Education Facilities
Authority, Refunding RB, Limited
Obligation, Creative Studies (a):

 

 

 

 

 

 

 

5.85%, 6/01/12

 

 

550

 

 

581,449

 

5.90%, 6/01/12

 

 

1,000

 

 

1,057,720

 

Michigan Higher Education Student
Loan Authority, RB, Student Loan,
Series XVII-Q, AMT (AMBAC), 5.00%,
3/01/31

 

 

500

 

 

495,620

 

Michigan State University, Refunding
RB, General, Series C:

 

 

 

 

 

 

 

5.00%, 2/15/40

 

 

3,770

 

 

3,769,736

 

5.00%, 2/15/44

 

 

1,000

 

 

995,130

 

Saginaw Valley State University
Michigan, Refunding RB, General
(NPFGC), 5.00%, 7/01/24

 

 

1,450

 

 

1,456,438

 

 

 

 

 

 

 

 

 

 

 

 

17,167,999

 

Health — 22.2%

 

 

 

 

 

 

 

Dickinson County Healthcare System,
Refunding RB, Series A (ACA), 5.80%,
11/01/24

 

 

2,170

 

 

2,183,888

 

Flint Hospital Building Authority
Michigan, Refunding RB, Hurley
Medical Center (ACA):

 

 

 

 

 

 

 

6.00%, 7/01/20

 

 

695

 

 

655,628

 

Series A, 5.38%, 7/01/20

 

 

385

 

 

347,459

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

2,750

 

 

2,561,707

 

Kent Hospital Finance Authority
Michigan, RB, Spectrum Health,
Series A (NPFGC), 5.50%, 7/15/11 (a)

 

 

3,000

 

 

3,062,340

 

Michigan State Hospital Finance
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit
Group, 5.00%, 11/15/25

 

 

2,300

 

 

2,333,488

 

Hospital, MidMichigan Obligation
Group, Series A (AMBAC), 5.50%,
4/15/18

 

 

1,000

 

 

1,013,520

 

McLaren Health Care, Series C,
5.00%, 8/01/35

 

 

1,585

 

 

1,445,821

 

Mercy Health Services, Series R
(AMBAC), 5.38%, 8/15/26 (c)

 

 

2,000

 

 

2,007,100

 

Trinity Health Credit Group,
Series A, 5.00%, 12/01/26

 

 

1,000

 

 

981,910

 

Michigan State Hospital Finance
Authority, Refunding RB:

 

 

 

 

 

 

 

Hospital, Crittenton, Series A,
5.63%, 3/01/27

 

 

1,300

 

 

1,259,518

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%, 7/15/21

 

 

400

 

 

401,220

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%, 7/15/25

 

 

2,470

 

 

2,337,213

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%, 7/15/37

 

 

3,340

 

 

2,846,649

 

Hospital, Sparrow Obligated, 5.00%,
11/15/31

 

 

1,595

 

 

1,406,312

 

 

 

 

2

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC.

APRIL 30, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

Michigan State Hospital Finance

 

 

 

 

 

 

 

Authority, Refunding RB (concluded):

 

 

 

 

 

 

 

McLaren Health Care, 5.75%,
5/15/38

 

$

1,500

 

$

1,503,390

 

Trinity Health Credit, Series A,
6.13%, 12/01/23

 

 

940

 

 

1,027,758

 

Trinity Health Credit, Series A,
6.25%, 12/01/28

 

 

570

 

 

604,172

 

Trinity Health Credit, Series A,
6.50%, 12/01/33

 

 

1,400

 

 

1,478,708

 

Trinity Health Credit, Series C,
5.38%, 12/01/23

 

 

1,000

 

 

1,010,170

 

Trinity Health Credit, Series C,
5.38%, 12/01/30

 

 

1,950

 

 

1,895,848

 

Trinity Health Credit, Series D,
5.00%, 8/15/34

 

 

1,650

 

 

1,503,925

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

1,000

 

 

1,133,770

 

 

 

 

 

 

 

 

 

 

 

 

35,001,514

 

Housing — 6.2%

 

 

 

 

 

 

 

Michigan State HDA, RB:

 

 

 

 

 

 

 

Deaconess Tower, AMT (Ginnie
Mae), 5.25%, 2/20/48

 

 

1,000

 

 

945,010

 

Series A, 4.75%, 12/01/25

 

 

2,675

 

 

2,521,508

 

Series A, 6.00%, 10/01/45

 

 

4,280

 

 

4,316,680

 

Series A, AMT (NPFGC), 5.30%,
10/01/37

 

 

20

 

 

19,445

 

Michigan State HDA, Refunding RB,
Series A, 6.05%, 10/01/41

 

 

2,000

 

 

2,014,440

 

 

 

 

 

 

 

 

 

 

 

 

9,817,083

 

State — 13.0%

 

 

 

 

 

 

 

Michigan Municipal Bond Authority,
Refunding RB, Local Government,
Charter County Wayne,

 

 

 

 

 

 

 

Series B (AGC):

 

 

 

 

 

 

 

5.00%, 11/01/14

 

 

1,500

 

 

1,638,465

 

5.00%, 11/01/15

 

 

1,000

 

 

1,094,780

 

5.00%, 11/01/16

 

 

500

 

 

554,980

 

5.38%, 11/01/24

 

 

125

 

 

133,588

 

Michigan State Building Authority,
Refunding RB, Facilities Program:

 

 

 

 

 

 

 

Series I, 6.25%, 10/15/38

 

 

2,350

 

 

2,481,600

 

Series I (AGC), 5.25%, 10/15/24

 

 

2,000

 

 

2,091,080

 

Series I (AGC), 5.25%, 10/15/25

 

 

1,500

 

 

1,547,715

 

Series I (AGC), 5.25%, 10/15/26

 

 

400

 

 

409,872

 

Series II (NPFGC), 5.00%,
10/15/29

 

 

2,000

 

 

2,000,420

 

State of Michigan, COP, Refunding, New
Center Development Inc. (NPFGC),
5.75%, 9/01/11 (c)

 

 

5,045

 

 

5,137,878

 

State of Michigan, RB, GAN (AGM),
5.25%, 9/15/27

 

 

3,250

 

 

3,378,180

 

 

 

 

 

 

 

 

 

 

 

 

20,468,558

 

Transportation — 15.0%

 

 

 

 

 

 

 

State of Michigan, Refunding RB (AGM),
5.25%, 5/15/19

 

 

1,000

 

 

1,121,760

 

Sturgis Building Authority, RB, Sturgis
Hospital Project (NPFGC), 4.75%,
10/01/34

 

 

3,525

 

 

3,248,746

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Transportation (concluded)

 

 

 

 

 

 

 

Wayne County Airport Authority, RB,
Detroit Metropolitan Wayne County
Airport, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

$

4,475

 

$

4,324,372

 

5.25%, 12/01/26

 

 

3,700

 

 

3,529,319

 

5.00%, 12/01/34

 

 

5,200

 

 

4,380,688

 

Wayne County Airport Authority,
Refunding RB, AMT (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/26

 

 

3,060

 

 

3,069,149

 

5.38%, 12/01/32

 

 

4,300

 

 

3,958,322

 

 

 

 

 

 

 

 

 

 

 

 

23,632,356

 

Utilities — 22.4%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (AGM),
7.00%, 7/01/36

 

 

2,000

 

 

2,241,260

 

Second Lien, Series B (NPFGC),
5.00%, 7/01/13 (a)

 

 

1,780

 

 

1,941,054

 

Second Lien, Series B (NPFGC),
5.00%, 7/01/34

 

 

2,620

 

 

2,250,240

 

Senior Lien, Series A (AGM), 5.00%,
7/01/25

 

 

3,460

 

 

3,330,527

 

Senior Lien, Series A (FGIC), 5.75%,
7/01/11 (a)

 

 

1,000

 

 

1,018,710

 

Senior Lien, Series A (NPFGC),
5.00%, 7/01/34

 

 

4,600

 

 

3,950,802

 

City of Detroit Michigan, Refunding RB,
Second Lien, Series C (AGM), 5.00%,
7/01/29

 

 

6,475

 

 

5,924,560

 

City of Grand Rapids Michigan, RB
(NPFGC), 5.00%, 1/01/34

 

 

6,900

 

 

6,913,524

 

City of Grand Rapids Michigan,
Refunding RB, Series A (NPFGC),
5.50%, 1/01/22

 

 

1,500

 

 

1,731,900

 

City of Wyoming Michigan, RB (NPFGC),
5.00%, 6/01/30

 

 

5,300

 

 

5,309,487

 

Michigan Municipal Bond Authority, RB,
Clean Water Revolving-Pooled, 5.00%,
10/01/27

 

 

760

 

 

811,156

 

 

 

 

 

 

 

 

 

 

 

 

35,423,220

 

Total Municipal Bonds in Michigan

 

 

 

 

 

212,729,049

 

Guam — 1.1%

 

 

 

 

 

 

 

County/City/Special District/
School District — 0.5%

 

 

 

 

 

 

 

Territory of Guam, RB, Section 30,
Series A, 5.63%, 12/01/29

 

 

850

 

 

825,639

 

Utilities — 0.6%

 

 

 

 

 

 

 

Guam Power Authority, Refunding RB,
Series A (AGM), 5.00%, 10/01/37

 

 

955

 

 

860,637

 

Total Municipal Bonds in Guam

 

 

 

 

 

1,686,276

 

Puerto Rico — 8.2%

 

 

 

 

 

 

 

County/City/Special District/
School District — 1.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, First Sub-Series C
(AGM), 5.13%, 8/01/42

 

 

3,200

 

 

3,030,688

 

State — 5.1%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority,
Refunding RB, Government Facilities,
Series M-3 (NPFGC), 6.00%, 7/01/27

 

 

3,700

 

 

3,779,513

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC.

APRIL 30, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico (concluded)

 

 

 

 

 

 

 

State (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A
(NPFGC) (d):

 

 

 

 

 

 

 

5.18%, 8/01/43

 

$

12,500

 

$

1,451,875

 

4.99%, 8/01/46

 

 

30,000

 

 

2,778,300

 

 

 

 

 

 

 

 

 

 

 

 

8,009,688

 

Transportation — 1.2%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation
Authority, Refunding RB, Series CC
(AGC), 5.50%, 7/01/31

 

 

2,000

 

 

1,987,780

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

13,028,156

 

Total Municipal Bonds – 144.2%

 

 

 

 

 

227,443,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

 

 

 

 

 

 

Michigan — 10.9%

 

 

 

 

 

 

 

Corporate — 4.9%

 

 

 

 

 

 

 

Wayne State University, Refunding RB,
General (AGM), 5.00%, 11/15/35

 

 

7,790

 

 

7,724,486

 

County/City/Special District/
School District — 2.6%

 

 

 

 

 

 

 

Lakewood Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/37

 

 

3,970

 

 

4,094,936

 

Education — 3.4%

 

 

 

 

 

 

 

Portage Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/31

 

 

2,850

 

 

2,858,350

 

Saginaw Valley State University,
Refunding RB, General (AGM), 5.00%,
7/01/31

 

 

2,500

 

 

2,514,800

 

 

 

 

 

 

 

 

 

 

 

 

5,373,150

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 10.9%

 

 

 

 

 

17,192,572

 

Total Long-Term Investments
(Cost – $249,883,737) – 155.1%

 

 

 

 

 

244,636,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

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

 

 

8,050,080

 

 

8,050,080

 

Total Short-Term Securities
(Cost – $8,050,080) – 5.1%

 

 

 

 

 

8,050,080

 

Total Investments (Cost – $257,933,817*) – 160.2%

 

 

 

 

 

252,686,133

 

Other Assets Less Liabilities – 0.9%

 

 

 

 

 

1,450,375

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (5.7)%

 

 

 

 

 

(9,042,052

)

Preferred Shares, at Redemption Value – (55.4)%

 

 

 

 

 

(87,356,212

)

 

 

 

 

 

Net Assets – 100.0%

 

 

 

 

$

157,738,244

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

248,946,311

 

 

 

Gross unrealized appreciation

 

$

5,324,845

 

Gross unrealized depreciation

 

 

(10,615,023

)

 

 

Net unrealized depreciation

 

$

(5,290,178

)

 

 

 

 

(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)

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

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Stifel Financial Corp.

 

$

2,214,752

 

$

27,174

 

 

 

(c)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(d)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(e)

Securities represent bonds transferred to a tender option bond trust 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,
2010

 

Net
Activity

 

Shares Held
at April 30,
2011

 

Income

 

BIF Michigan
Municipal
Money Fund

 

 

605,019

 

 

7,445,061

 

 

8,050,080

 

$

1,268

 

 

 

(g)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of April 30, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

58

 

 

10-Year U.S. Treasury Bond

 

 

Chicago Board of Trade

 

 

June 2011

 

$

6,873,796

 

$

(152,360

)

 

 

 

4

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC.

APRIL 30, 2011


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)

 

 

 

•

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

 

 

 

 

•

Level 1 — 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)

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk 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, 2011 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

 

 

—

 

$

244,636,053

 

 

—

 

$

244,636,053

 

Short-Term
Securities

 

$

8,050,080

 

 

—

 

 

—

 

 

8,050,080

 

Total

 

$

8,050,080

 

$

244,636,053

 

 

—

 

$

252,686,133

 

 

 

 

 

1

See above Schedule of Investments for values in each sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(152,360

)

 

—

 

 

—

 

$

(152,360

)

 

 

2

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

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC.

APRIL 30, 2011

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 Michigan Quality Fund II, Inc.

 

 
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer of
    BlackRock MuniYield Michigan Quality Fund II, Inc.
   
  Date: June 24, 2011
   
  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 Michigan Quality Fund II, Inc.
   
  Date: June 24, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Michigan Quality Fund II, Inc.
     
  Date: June 24, 2011