Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 212

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 212
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 to be consistent with the value of similar bonds. MVF Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued
because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of MVF Municipal Bonds of the market sector for reasons that do not apply to the particular MVF Municipal Bonds that are
considered undervalued. MVF’s investment in underrated or undervalued MVF 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 MVF will generally result in capital gain distributions subject to
federal capital gains taxation.

MVF ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to
time, MVF 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 MVF Municipal Bonds for investment by MVF.

Description of MVF Municipal Bonds

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

Temporary Investments

During temporary defensive
periods (e.g., times when, in Investment Advisor’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which

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long-term or intermediate-term MVF Municipal Bonds are available), and in order to keep cash
on hand fully invested, MVF may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of
other open- or closed-end investment companies that invest primarily in MVF Municipal Bonds of the type in which MVF may invest directly. MVF intends to invest in taxable short-term investments only in the
event that suitable tax-exempt temporary investments are not available at reasonable prices and yields. MVF’s stated expectation is that it will invest only in taxable temporary investments which are U.S.
government securities