Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 166

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 166
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 true value. Any capital appreciation realized by MVT will generally result in capital gain distributions
subject to federal capital gains taxation.

MVT ordinarily does not intend to realize significant investment income not exempt from
federal income tax. From time to time, MVT may realize taxable capital gains.

Federal tax legislation has limited the types and volume of
bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of MVT Municipal Bonds for investment by MVT.

Description of MVT Municipal Bonds

See
“The Acquiring Fund’s Investments – Description of MYI Municipal Bonds” for additional information regarding the types of municipal bonds in which MVT invests.

Strategic Transactions and Other Management Techniques

MVT may purchase and sell futures contracts, enter 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