Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 172

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 172
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the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce
MVT’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of MVT’s common shares. MVT may purchase insured bonds and may purchase insurance for bonds in its portfolio.

MVT may invest in certain tax exempt securities classified as PABs (in general, bonds that benefit
non-governmental entities) that may subject certain investors in MVT to an alternative minimum tax. The percentage of MVT’s total assets invested in PABs will vary from time to time. MVT expects that a
portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal alternative minimum tax or who would become
subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from MVT with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may apply to corporate
investors.

The average maturity of MVT’s portfolio securities varies from time to time based upon an assessment of economic and
market conditions by the Investment Advisor. MVT’s portfolio at any given time may include long- term and intermediate-term MVT Municipal Bonds.

MVT’s stated expectation is that it will invest in MVT Municipal Bonds that, in the Investment Advisor’s opinion, are underrated or
undervalued. Underrated MVT Municipal Bonds are those whose ratings do not, in the opinion of the Investment Advisor, reflect their true higher creditworthiness. Undervalued MVT Municipal Bonds are bonds that, in the opinion of the Investment
Advisor, are worth more than the value assigned to them in the marketplace. The Investment Advisor may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued
by a particular municipal issuer, are undervalued. The Investment Advisor may purchase those bonds for MVT’s portfolio because they represent a market sector or issuer that the Investment Advisor considers undervalued, even if the value of
those particular bonds appears to be consistent with the value of similar bonds. MVT Municipal Bonds of particular types (for example