Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 162

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 162
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 Municipal Bonds that are considered undervalued. MVT’s investment in underrated or undervalued MVT Municipal Bonds will be based on the Investment Advisor’s belief that their yield is higher than that available on bonds
bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by MVT will generally result in
capital gain distributions subject to federal capital gains taxation.

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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 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