Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 155

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 155
---
 use of leverage representing 35.7% of the Combined Fund’s total managed assets and the Combined Fund’s currently projected annual leverage expenses of 3.27%.

| Assumed Portfolio Total Return (net of expenses) |     |  -10 | % |     |  -5 | % |     |   0 | % |     |   5 | % |     |   10 | % |
| Common Share Total Return                        |     | 17.4 | % |     | 9.6 | % |     | 1.8 | % |     | 6.0 | % |     | 13.7 | % |

Common Share total return is composed of two elements: the Common Share dividends paid by the Combined Fund (the amount of which is largely determined by the net investment income of the Combined Fund) and gains or losses on the value of the securities the Combined Fund owns. As required by SEC rules, the table assumes that the Combined Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, a total return of 0% assumes that the tax-exemptinterest the Combined Fund receives on its municipal bonds investments is entirely offset by losses in the value of those securities. Preferred Shares The Acquiring Fund has leveraged its portfolio by issuing preferred shares. Under the 1940 Act, the Acquiring Fund is not permitted to issue preferred shares if, immediately after such issuance, the liquidation value of the Acquiring Fund’s outstanding preferred shares exceeds 50% of its assets (including the proceeds from the issuance) less liabilities other than borrowings ( i.e., the value of the Acquiring Fund’s assets must be at least 200% of the liquidation value of its outstanding preferred shares). In addition, the Acquiring Fund would not be permitted to declare any cash dividend or other distribution on its common shares unless, at the time of such declaration, the value of the Acquiring Fund’s assets less liabilities other than borrowings is at least 200% of such liquidation value. For tax purposes, the Acquiring Fund is currently required to allocate tax-exemptinterest income, net capital gain and other taxable income, if any, between its common shares and preferred shares outstanding in proportion to total dividends paid to each class for the year in which or with respect to which tax-exemptincome, the net capital gain or other taxable income is paid. If net capital gain or other taxable income is allocated to preferred shares, instead of solely tax-exemptincome