Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 158

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 158
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 as for cash management purposes) are not subject to these limitations if (i) repaid within 60
days, (ii) not extended or renewed and (iii) not in excess of 5% of the total assets of the Acquiring Fund.

89

Effects of Leverage Assuming that leverage will represent approximately 35.7% of the Combined Fund’s total managed assets and that the Combined Fund will bear expenses relating to that leverage at an average annual rate of 3.27%, the income generated by the Combined Fund’s portfolio (net of estimated expenses) must exceed 1.17% in order to cover the expenses specifically related to the Combined Fund’s estimated use of leverage. Of course, these numbers are merely estimates used for illustration. Actual leverage expenses will vary frequently and may be significantly higher or lower than the rate estimated above. The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share total return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Combined Fund’s portfolio) of -10%, -5%,0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Combined Fund. The table further reflects the use of leverage representing 35.7% of the Combined Fund’s total managed assets and the Combined Fund’s currently projected annual leverage expenses of 3.27%.

| Assumed Portfolio Total Return (net of expenses) |     | -10%    |     | -5%    |     | 0%     |     | 5%   |     | 10%   |
| Common Share Total Return                        |     | (17.4)% |     | (9.6)% |     | (1.8)% |     | 6.0% |     | 13.7% |

Common Share total return is composed of two elements: the Common Share dividends paid by the Combined Fund (the amount of which is largely determined by the net investment income of the Combined Fund) and gains or losses on the value of the securities the Combined Fund owns. As required by SEC rules, the table assumes that the Combined Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, a total return of 0% assumes that the tax-exemptinterest the Combined Fund receives on its municipal bonds investments is entirely offset by losses in