Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 167

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 167
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, currently there are financial futures contracts based on long-term U.S. Treasury bonds, U.S. Treasury notes, Government National Mortgage Association
(“”) Certificates and three-month U.S. Treasury bills. MVT may purchase and write call and put options on futures contracts on U.S. Government securities and purchase and sell municipal security index futures contracts in
connection with its hedging strategies.

MVT also may engage in other futures contracts transactions such as futures
contracts on other municipal bond indices that may become available if the Investment Advisor should determine that there is normally a sufficient correlation between the prices of such futures contracts and MVT Municipal Bonds in which MVT invests
to make such hedging appropriate.

Futures Strategies. MVT may sell a financial futures contract (i.e.,
assume a short position) in anticipation of a decline in the value of its investments resulting from an increase in interest rates or otherwise. The risk of decline could be reduced without employing futures as a hedge by selling investments and
either reinvesting the

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proceeds in securities with shorter maturities or by holding assets in cash. This strategy, however, entails increased transaction costs in the form of dealer spreads and typically would reduce
the average yield of MVT’s portfolio securities as a result of the shortening of maturities. The sale of futures contracts provides an alternative means of hedging against declines in the value of its investments. As such values decline, the
value of MVT’s positions in the futures contracts will tend to increase, thus offsetting all or a portion of the depreciation in the market value of MVT’s investments that are being hedged. While MVT will incur commission expenses in
selling and closing out futures positions, commissions on futures transactions are typically lower than transaction costs incurred in the purchase and sale of MVT’s investments being hedged. In addition, the ability of MVT to trade in the
standardized contracts available in the futures markets may offer a more effective defensive position than a program to reduce the average maturity of the portfolio securities due to the unique and varied credit and technical characteristics of the
instruments available to MVT. Employing futures as a hedge also may permit MVT to assume a defensive posture without reducing the yield on its investments beyond any amounts required to engage in futures trading.

When MVT intends to purchase a security, MVT may purchase futures contracts as a hedge against any increase in the cost of
such security resulting from a decrease in interest rates or otherwise, that may occur before