Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 165

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 165
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 into various interest rate transactions and swap contracts (including, but not limited to,
credit default swaps) and may purchase and sell exchange-listed and OTC put and call options on securities and swap contracts, financial indices and futures contracts and use other derivative instruments or management techniques (collectively,
“Strategic Transactions”). These Strategic Transactions may be used for

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duration management and other risk management purposes, subject to MVT’s investment restrictions. While MVT’s use of Strategic Transactions is intended to reduce the volatility of the
NAV of MVT’s common shares, the NAV of MVT’s common shares will fluctuate. No assurance can be given that MVT’s Strategic Transactions will be effective.

There is no particular strategy that requires use of one technique rather than another as the decision to use any particular strategy or
instrument is a function of market conditions and the composition of the portfolio. The ability of MVT to use Strategic Transactions successfully will depend on the Investment Advisor’s ability to predict pertinent market movements as well as
sufficient correlation among the instruments, which cannot be assured. Strategic Transactions subject MVT to the risk that, if the Investment Advisor incorrectly forecasts market values, interest rates or other applicable factors, MVT’s
performance could suffer. Certain of these Strategic Transactions, such as investments in inverse floating rate securities and credit default swaps, may provide investment leverage to MVT’s portfolio. MVT is not required to use derivatives or
other portfolio strategies to seek to hedge its portfolio and may choose not to do so.

The use of Strategic Transactions may result in
losses greater than if they had not been used, may require MVT to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation MVT can realize on an investment or may
cause MVT to hold a security that it might otherwise sell. Furthermore, MVT may only engage in Strategic Transactions from time to time and may not necessarily be engaging in hedging activities when movements in interest rates occur.

For so long as the VMTP Shares are rated by a rating agency, MVT’s use of options and certain financial futures and options thereon will
be subject to such rating agency’s guidelines and limitations on such transactions. In order to maintain ratings on the VMTP Shares from one or more rating agencies, MVT may be required to limit its use of Strategic Transactions in accordance
with the specified guidelines of the applicable rating agencies.

Certain federal income tax requirements may restrict or affect the
ability