Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 207

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 207
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 such factors as the Investment Advisor’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the
security by other rating agencies. In the event that MVF disposes of a portfolio security subsequent to its being downgraded, MVF may experience a greater risk of loss than if such security had been sold prior to such downgrade.

MVF may also purchase MVF Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow
accounts. The credit quality of companies which provide these credit enhancements will affect 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 MVF’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common stock. MVF may purchase insured bonds and may purchase insurance for
bonds in its portfolio.

MVF may invest in certain tax exempt securities classified as PABs (in general, bonds that
benefit non-governmental entities) that may subject certain investors in MVF to an alternative minimum tax. The percentage of MVF’s total assets invested in PABs will vary from time to time. MVF has not
established any limit on the percentage of its portfolio that may be invested in MVF Municipal Bonds subject to the federal alternative minimum tax provisions of federal tax law, and MVF expects that a portion of the income it produces will be
includable in alternative minimum taxable income.

MVF also may not invest more than 25% of its total assets (taken at
market value at the time of each investment) in MVF Municipal Bonds whose issuers are located in the same state.

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

MVF’s stated expectation is that it will invest in MVF Municipal Bonds that, in the Investment Advisor’s opinion,
are underrated or undervalued. Underrated MVF Municipal Bonds are those whose ratings do not, in the opinion of the Investment Advisor, reflect their true higher creditworthiness. Undervalued MVF Municipal Bonds are bonds that, in the opinion of the
Investment Advisor, are worth more than the value assigned to them in the