UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-7080
Name of Fund: MuniYield Michigan Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield Michigan Insured Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011,
Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/04
Date of reporting period: 05/01/04 - 07/31/04
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of July 31, 2004 (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Michigan - 141.1%
Adrian, Michigan, City School District, GO(d):
AAA Aaa $ 2,000 5% due 5/01/2029 $ 2,004
AAA Aaa 1,600 5% due 5/01/2034 1,597
AAA Aaa 1,000 Allegan, Michigan, Public School District, GO, 5.75% due 5/01/2030(d) 1,073
Belding, Michigan, Area Schools, GO, Refunding(c):
AAA Aaa 785 6.05% due 5/01/2006(e) 848
AAA Aaa 215 6.05% due 5/01/2021 229
AAA Aaa 5,000 Birmingham, Michigan, City School District, School Building and Site, GO,
5% due 11/01/2033(d) 4,992
AAA Aaa 1,000 Central Montcalm, Michigan, Public Schools, GO, 5.90% due 5/01/2019(b) 1,107
AAA Aaa 1,000 Comstock Park, Michigan, Public Schools, GO, 5.75% due 5/01/2029(c) 1,073
Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba):
BBB Baa2 1,500 AMT, Series B, 6.45% due 4/15/2023 1,550
BBB Baa2 2,000 Series A, 6.25% due 4/15/2027 2,076
Detroit, Michigan, City School District, GO, Series A:
AAA Aaa 1,000 5.50% due 5/01/2018(d) 1,099
AAA Aaa 2,300 (School Building and Site Improvement), 5.375% due 5/01/2024(c) 2,424
Detroit, Michigan, GO(b):
AAA Aaa 1,400 5.50% due 4/01/2018 1,527
AAA Aaa 1,325 5.50% due 4/01/2020 1,435
AAA Aaa 2,705 Series B, 6% due 4/01/2015 3,057
AAA Aaa 1,545 Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, Senior Lien,
Series C, 5.25% due 7/01/2022(d) 1,678
Detroit, Michigan, Water Supply System Revenue Bonds:
AAA NR* 4,375 DRIVERS, Series 200, 10.14% due 7/01/2011(c)(e)(g) 5,670
AAA Aaa 1,250 Senior Lien, Series A, 5.875% due 1/01/2010(c)(e) 1,427
AAA Aaa 6,900 Senior Lien, Series A, 5% due 7/01/2034(b) 6,831
AAA Aaa 15,490 Series B, 5.25% due 7/01/2032(b) 15,832
AAA Aaa 3,500 Series B, 5% due 7/01/2034(b) 3,465
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of July 31, 2004 (concluded) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Michigan (concluded)
AAA Aaa $ 1,415 Detroit, Michigan, Water Supply System Revenue Refunding Bonds, 6.25% due
7/01/2012(c)(h) $ 1,422
BBB Baa2 3,900 Dickinson County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (International Paper Company Project),
Series A, 5.75% due 6/01/2016 4,055
BBB Baa2 2,500 Dickinson County, Michigan, Economic Development Corporation, PCR, Refunding
(Champion International Corporation Project), 5.85% due 10/01/2018 2,551
A NR* 3,100 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding
Bonds, 5.80% due 11/01/2024(i) 3,171
AAA Aaa 1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due
5/01/2009(d)(e) 1,807
Eastern Michigan University Revenue Bonds, Series B(c):
AAA Aaa 1,500 5.60% due 6/01/2025 1,601
AAA Aaa 1,310 5.625% due 6/01/2030 1,387
AAA Aaa 1,025 Eastern Michigan University Revenue Refunding Bonds, 6% due 6/01/2020(a) 1,158
Eaton Rapids, Michigan, Public Schools, School Building and Site, GO(d):
AAA Aaa 1,325 5.25% due 5/01/2020 1,420
AAA Aaa 1,675 5.25% due 5/01/2021 1,783
AAA Aaa 1,700 5% due 5/01/2026 1,713
AAA Aaa 3,600 5% due 5/01/2029 3,608
A NR* 615 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 5.375% due 7/01/2020(i) 618
AAA Aaa 1,800 Fowlerville, Michigan, Community Schools, School District GO, 5% due
5/01/2030(c) 1,803
AAA Aaa 1,000 Frankenmuth, Michigan, School District, GO, 5.75% due 5/01/2020(c) 1,102
AAA Aaa 3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due
5/01/2028(c) 3,665
AAA Aaa 1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2020(c) 1,212
Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A(a):
AAA Aaa 1,100 5.50% due 10/01/2019 1,206
AAA Aaa 1,500 5.50% due 10/01/2020 1,635
AAA Aaa 2,070 Grand Valley, Michigan, State University Revenue Bonds, 5.50% due
2/01/2018(c) 2,316
AAA NR* 8,425 Greater Detroit, Michigan, Resource Recovery Authority Revenue Bonds,
DRIVERS, Series 167, 11.121% due 12/13/2008(a)(g) 10,603
AAA Aaa 9,325 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(e) 10,683
AA+ Aa1 1,475 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due
5/01/2020 1,622
AAA Aaa 3,990 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029(d) 3,999
AAA Aaa 1,575 Jenison, Michigan, Public Schools, Building and Site, GO, 5.50% due
5/01/2019(c) 1,724
AAA Aaa 3,305 Jonesville, Michigan, Community Schools, GO, 5.75% due 5/01/2029(c) 3,547
NR* Aaa 6,850 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028(b) 6,996
AAA Aaa 4,000 Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Butterworth Hospital), Series A, 7.25% due 1/15/2013(b) 4,780
Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A(b):
AA Aa3 1,000 5.50% due 1/15/2031 1,018
AAA Aaa 3,000 5.50% due 1/15/2031 3,103
AAA Aaa 1,510 Lansing, Michigan, Building Authority, GO, Series A, 5.375% due 6/01/2023(b) 1,603
AAA Aaa 5,235 Lincoln Park, Michigan, School District, GO, 7% due 5/01/2006(c)(e) 5,743
AAA Aaa 4,775 Livonia, Michigan, Public School District, GO (Building and Site), 5.75% due
5/01/2010(c)(e) 5,408
BBB NR* 2,250 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 2,293
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds
(College for Creative Studies):
NR* Baa2 1,235 5.85% due 12/01/2022 1,248
NR* Baa2 1,145 5.90% due 12/01/2027 1,147
AAA Aaa 2,500 Michigan Higher Education Student Loan Authority, Student Loan Revenue
Bonds, AMT, Series XVII-B, 5.40% due 6/01/2018(a) 2,581
AAA NR* 1,065 Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan
Program), Group A, 5.50% due 11/01/2020(a) 1,162
Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government
Loan Program), Series A:
AAA Aaa 150 6.50% due 11/01/2012(b) 152
AAA Aaa 1,000 6% due 12/01/2013(c) 1,035
AAA Aaa 7,000 6.125% due 12/01/2018(c) 7,237
AA+ Aaa 7,000 Michigan State Building Authority Revenue Bonds, GO, RIB, Series 481, 9.643%
due 4/15/2009(b)(g) 8,620
Michigan State Building Authority Revenue Refunding Bonds:
AAA Aaa 2,500 (Facilities Program), Series I, 5.50% due 10/15/2018(b) 2,746
AAA Aaa 3,000 (Facilities Program), Series II, 5% due 10/15/2029 3,006
NR* Aaa 11,140 RIB, Series 517X, 9.64% due 10/15/2010(d)(g) 13,837
Michigan State COP(a):
AAA Aaa 3,000 5.40% ** due 6/01/2022 1,199
AAA Aaa 3,000 5.50% due 6/01/2027 3,136
AAA Aaa 2,665 Michigan State HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037(b) 2,679
AA+ NR* 2,690 Michigan State HDA, Revenue Refunding Bonds, Series C, 5.90% due
12/01/2015(f) 2,806
AAA Aaa 2,530 Michigan State Hospital Finance Authority, Hospital Revenue Bonds
(Mid-Michigan Obligation Group), Series A, 5.50% due 4/15/2018(a) 2,708
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
A+ A2 2,200 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 2,240
A A1 2,000 (Sparrow Obligation Group), 5.625% due 11/15/2031 2,019
Michigan State Hospital Finance Authority Revenue Refunding Bonds:
AAA Aaa 2,715 (Ascension Health Credit), Series A, 5.75% due 11/15/2009(b)(e) 3,082
AAA Aaa 12,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009(b)(e) 13,838
AAA Aaa 2,500 (Ascension Health Credit), Series A, 6.25% due 11/15/2009(b)(e) 2,898
AAA Aaa 4,805 (Mercy Health Services), Series T, 6.50% due 8/15/2013(b) 5,359
AAA Aaa 2,000 (Mercy Health Services), Series X, 6% due 8/15/2014(b) 2,249
AAA Aaa 2,200 (Mercy Health Services), Series X, 5.75% due 8/15/2019(b) 2,401
AAA Aaa 4,930 (Mercy Mount Clemens), Series A, 6% due 5/15/2014(b) 5,526
AAA Aaa 3,000 (Saint John Hospital), Series A, 6% due 5/15/2013(a)(h) 3,151
AAA Aaa 6,400 (Trinity Health), Series A, 6% due 12/01/2027(a) 6,959
AA- Aa3 1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,029
AA- Aa3 5,255 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 5,306
BBB- Baa1 5,000 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Ford Motor
Company Project), AMT, Series A, 6.55% due 10/01/2022 5,014
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
AAA Aaa 7,250 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029(b) 7,444
AAA Aaa 6,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2001(c) 7,175
A- A3 3,300 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,331
A- A3 2,175 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 2,260
NR* Aaa 5,750 RIB, Series 382, 11.39% due 9/01/2025(b)(g) 6,485
BBB Baa1 2,500 Michigan State Strategic Fund, PCR, Refunding (General Motors Corp.), 6.20%
due 9/01/2020 2,654
AAA Aaa 1,000 Michigan State Trunk Line Revenue Refunding Bonds, 5.25% due 10/01/2021(d) 1,056
AAA Aaa 15,000 Monroe County, Michigan, Economic Development Corp., Limited Obligation
Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due
9/01/2022(c) 19,304
AAA Aaa 1,000 Montrose Township, Michigan, School District, GO, 6.20% due 5/01/2017(b) 1,184
NR* Aaa 1,830 Muskegon Heights, Michigan, Water System Revenue Bonds, Series A, 5.625%
due 11/01/2025(b) 1,959
AAA Aaa 235 Northview, Michigan, Public School District, GO, Refunding, 5.80% due
5/01/2021(b) 249
AAA Aaa 1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90% due 5/01/2025(c) 1,206
AA+ Aaa 2,425 Oxford, Michigan, Area Community School District, GO, 5.50% due 5/01/2018(d) 2,666
AAA Aaa 1,370 Pennfield, Michigan, School District, School Building and Site, GO, 5% due
5/01/2029(c) 1,373
AAA Aaa 1,000 Plainwell, Michigan, Community Schools, School District, School Building and
Site, GO, 5.50% due 5/01/2020(d) 1,088
A NR* 700 Pontiac, Michigan, Tax Increment Finance Authority, Tax Increment Revenue
Refunding Bonds (Development Area 2), 5.625% due 6/01/2022(i) 714
AAA Aaa 1,425 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2026(d) 1,436
AA+ Aa1 1,800 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
5/01/2015(c) 1,984
AAA Aaa 2,500 Saginaw, Michigan, Hospital Finance Authority Revenue Refunding Bonds
(Covenant Medical Center), Series E, 5.625% due 7/01/2013(b) 2,759
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds(c):
NR* Aaa 2,100 5% due 7/01/2024 2,138
NR* Aaa 1,445 5% due 7/01/2034 1,442
NR* Aaa 8,900 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit
Edison Company), RIB, Series 282, 11.42% due 8/01/2024(a)(g) 11,309
AAA Aaa 1,300 Southfield, Michigan, Library Building Authority, GO, 5.50% due 5/01/2018(b) 1,423
Southfield, Michigan, Public Schools, School Building and Site, GO,
Series B(d):
AAA Aaa 2,900 5.25% due 5/01/2027 3,002
AAA Aaa 3,500 5% due 5/01/2029 3,508
AAA Aaa 1,325 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due
5/01/2030(c) 1,325
Sturgis, Michigan, Public School District, School Building and Site, GO:
AA+ Aa1 1,900 5.50% due 5/01/2021 2,061
AA+ Aa1 2,545 5.625% due 5/01/2030 2,694
AAA Aaa 1,000 Three Rivers, Michigan, Community Schools, GO, 6% due 5/01/2006(b)(e) 1,080
AAA Aaa 1,100 Waverly, Michigan, Community School, GO, 5.50% due 5/01/2021(c) 1,193
AAA Aaa 10,660 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan
Wayne County), AMT, Series A, 5.375% due 12/01/2015(b) 11,344
AAA Aaa 1,750 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport
Hotel, Series A, 5% due 12/01/2030(b) 1,752
West Bloomfield, Michigan, School District, GO Refunding(c):
AAA Aaa 1,710 5.50% due 5/01/2017 1,888
AAA Aaa 1,225 5.50% due 5/01/2018 1,347
AAA Aaa 2,405 West Branch-Rose City, Michigan, Area School District, GO, 5.50% due
5/01/2024(c) 2,558
AAA Aaa 1,600 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029(b) 1,604
Puerto Rico - 4.6%
AAA Aaa 1,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts,
Class R, Series 16 HH, 10.07% due 7/01/2013(d)(g) 1,632
AAA Aaa 3,790 Puerto Rico Municipal Finance Agency Revenue Bonds, Series A, 5% due
8/01/2027(d) 3,837
Puerto Rico Public Finance Corporation, Commonwealth Appropriation
Revenue Bonds(e):
AAA Aaa 1,000 Series A, 5.375% due 8/01/2011(b) 1,122
BBB+ Baa2 2,900 Series E, 5.75% due 2/01/2007 3,146
BBB+ Baa2 1,000 Series E, 5.70% due 2/01/2010 1,129
AAA Aaa 2,150 University of Puerto Rico, University Revenue Refunding Bonds, Series O,
5.375% due 6/01/2030(b) 2,212
Total Municipal Bonds (Cost - $382,996) - 145.8% 410,792
Shares
Held Short-Term Securities
11,077 CMA Michigan Municipal Money Fund(j) 11,077
Total Short-Term Securities (Cost - $11,077) - 3.9% 11,077
Total Investments (Cost - $394,073***) - 149.7% 421,869
Other Assets Less Liabilities- 0.0% 22
Preferred Stock, at Redemption Value - (49.7%) (140,009)
----------
Net Assets Applicable to Common Stock - 100.0% $ 281,882
==========
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) Prerefunded.
(f) FHA Insured.
(g) The interest rate is subject to change periodically and
inversely based upon prevailing market rates. The interest rate
shown is the rate in effect at July 31, 2004.
(h) Escrowed to maturity.
(i) ACA Insured.
(j) Investments in companies considered to be an affiliate of the
Fund (such companies are defined as "Affiliated Companies" in
Section 2(a)(3) of the Investment Company Act of 1940) were as
follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund 241 $ 41
* Not Rated.
** Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase by the Fund.
***The cost and unrealized appreciation/depreciation of investments
as of July 31, 2004, as computed for federal income tax purposes
were as follows:
(in Thousands)
Aggregate cost $ 394,073
==============
Gross unrealized appreciation $ 27,895
Gross unrealized depreciation (99)
--------------
Net unrealized appreciation $ 27,796
==============
Forward interest rate swaps outstanding as of July 31, 2004 were as
follows:
(in Thousands)
Notional Unrealized
Amount Depreciation
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate equal
to 4.229%
Broker, J.P. Morgan Chase Bank
Expires August 2014 $ 10,000 $ (402)
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate equal
to 4.081%
Broker, J.P. Morgan Chase Bank
Expires August 2014 $ 10,100 (276)
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate equal
to 3.885%
Broker, J.P. Morgan Chase Bank
Expires October 2014 $ 21,500 (138)
--------
Total $ (816)
========
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed
such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MuniYield Michigan Insured Fund, Inc.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
MuniYield Michigan Insured Fund, Inc.
Date: September 17, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
MuniYield Michigan Insured Fund, Inc.
Date: September 17, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Michigan Insured Fund, Inc.
Date: September 17, 2004