Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 89

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 89
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 pertinent market factors at any given time. The Acquiring Fund may incur costs in seeking to adjust the portfolio’s average duration or maturity. There can be no assurances that the Investment Advisor’s assessment of current and projected market conditions will be correct or that any strategy to adjust the portfolio’s duration or maturity will be successful at any given time. Leverage Risk.The use of leverage creates an opportunity for increased common share net investment income dividends, but also creates risks for the holders of common shares. The Acquiring Fund cannot assure you that the use of leverage, if employed, will result in a higher yield on the common shares. Any leveraging strategy the Acquiring Fund employs may not be successful. Leverage involves risks and special considerations for common shareholders, including:

| (1) | the likelihood of greater volatility of NAV, market price and dividend rate of the common shares than a 
 comparable portfolio without leverage;                                                                  |

| (2) | the risk that fluctuations in interest rates or dividend rates on any leverage that the Acquiring Fund must 
 pay will reduce the return to the common shareholders;                                                      |

| (3) | the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the                                   
 common shares than if the Acquiring Fund were not leveraged, which may result in a greater decline in the market price of the common shares; |

| (4) | when the Acquiring Fund uses financial leverage, the management fee payable to the Investment Advisor will 
 be higher than if the Acquiring Fund did not use leverage; and                                             |

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| (5) | leverage may increase operating costs, which may reduce total return. |

Any decline in the NAV of the Acquiring Fund’s investments will be borne entirely by the holders of common shares. Therefore, if the market value of the Acquiring Fund’s portfolio declines, leverage will result in a greater decrease in NAV to the common shareholders than if the Acquiring Fund were not leveraged. This greater NAV decrease will also tend to cause a greater decline in the market price for the common shares. While the Acquiring Fund may from time to time consider reducing any outstanding leverage in response to actual or anticipated changes in interest rates in an effort to mitigate the increased volatility of current income and NAV associated with leverage, there can be no assurance that the Acquiring Fund will actually reduce any outstanding leverage in the future or that any reduction, if undertaken, will benefit the holders of common shares. Changes in the future direction of interest rates are very difficult to predict accurately