Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 187

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 187
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 Transactions may be used for duration management and other risk management purposes, subject to MIY’s investment restrictions. While MIY’s use of Strategic Transactions is intended to
reduce the volatility of the NAV of MIY’s common shares, the NAV of MIY’s common shares will fluctuate. No assurance can be given that MIY’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 MIY 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

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subject MIY to the risk that, if the Investment Advisor incorrectly forecasts market values, interest rates or other applicable factors, MIY’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 MIY’s portfolio. MIY 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 MIY to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation MIY can realize on an investment or may cause MIY to hold a security that it might
otherwise sell. Furthermore, MIY may only engage in Strategic Transactions from time to time and may not necessarily be engaging in hedging activities when movements in interest rates occur.

MIY’s investment objective and the requirements of Subchapter M of the Code for qualification as a regulated investment company may
restrict or affect the ability of MIY to engage in Strategic Transactions. In addition, the use of certain Strategic Transactions may give rise to taxable income and have certain other consequences, such as subjecting a portion of MIY’s
dividends to regular federal income tax. However, under normal circumstances, MIY does not intend to use Strategic Transactions that give rise to taxable income.

Put and Call Options on Securities and Indices. MIY may purchase and sell put and call options on securities and indices. A put option
gives the purchaser of the option the right to sell and the writer the obligation to buy the underlying security at the exercise price during the option period. MIY may also purchase and