BLACKROCK MUNIYIELD QUALITY FUND, INC.

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: 811-06660

Name of Fund:    BlackRock MuniYield Quality Fund, Inc. (MQY)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield

                Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 04/30/2017

Date of reporting period: 01/31/2017


Item 1 – Schedule of Investments

 


Schedule of Investments January 31, 2017 (Unaudited)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 0.6%

                

County of Jefferson Alabama, RB, Limited Obligation School, Series A, 4.75%, 1/01/25

   $ 3,000     $ 3,012,134  

Alaska — 1.4%

 

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

     1,400       1,550,654  

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC), 6.00%, 9/01/19 (a)

     4,425       4,952,371  
    

 

 

 
               6,503,025  

Arizona — 0.7%

 

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:

    

3.25%, 1/01/37

     975       886,509  

5.00%, 1/01/38

     525       591,428  

State of Arizona, COP, Department of Administration, Series A (AGM):

    

5.00%, 10/01/27

     1,525       1,651,682  

5.25%, 10/01/28

     250       272,455  
    

 

 

 
               3,402,074  

California — 20.0%

 

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC), 5.45%, 10/01/17 (a)

     4,150       4,277,280  

Cabrillo Community College District, GO, CAB, Election of 2004, Series B (NPFGC), 0.00%, 8/01/38 (b)

     7,405       2,672,020  

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     775       842,069  

Sutter Health, Series B, 5.88%, 8/15/31

     1,500       1,710,870  

California State University, Refunding RB (AGM):

    

5.00%, 11/01/32

     1,880       1,897,785  

Systemwide, Series A, 5.00%, 5/01/17 (a)

     2,660       2,688,435  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

     2,000       2,174,080  
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Carlsbad California Unified School District, GO, Election of 2006, Series B, 6.00%, 5/01/34 (c)

   $ 5,000     $ 5,270,150  

City of San Jose California, Refunding ARB, AMT:

    

Series A (AMBAC), 5.50%, 3/01/32

     5,100       5,117,799  

Series A-1, 5.75%, 3/01/34

     1,150       1,298,270  

Coast Community College District, GO, CAB, Election of 2002, Series C (AGM), 5.00%, 8/01/18 (a)

     2,800       2,968,280  

County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/18 (a)

     3,000       3,151,860  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36

     900       1,041,435  

El Monte Union High School District, GO, Series C (AGM), 5.25%, 6/01/18 (a)

     6,110       6,455,398  

Grossmont Union High School District, GO, CAB, Election of 2004, 0.00%, 8/01/31 (b)

     5,000       2,827,600  

Grossmont-Cuyamaca Community College District, GO, Refunding CAB, Election of 2002, Series C (AGC), 0.00%, 8/01/30 (b)

     10,030       5,913,889  

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.00%, 8/01/34 (c)

     4,125       3,997,868  

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a)

     6,890       7,036,619  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43 (c)

     1,945       1,374,006  

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 8/01/36 (b)

     5,000       2,185,250  

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 8/01/37 (b)

     4,005       1,728,959  
 

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    1


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

San Bernardino Community College
District, GO, CAB, Election of 2008,
Series B, 6.38%, 8/01/34 (c)

   $ 10,000     $ 10,590,300  

San Diego California Unified School District, GO, Election of 2008 (b):

    

CAB, Series C, 0.00%, 7/01/38

     2,200       877,140  

CAB, Series G, 0.00%, 7/01/34

     900       395,640  

CAB, Series G, 0.00%, 7/01/35

     950       392,502  

CAB, Series G, 0.00%, 7/01/36

     1,430       554,926  

CAB, Series G, 0.00%, 7/01/37

     950       347,092  

San Diego California Unified School District, GO, Refunding, CAB, Series R-1, 0.00%, 7/01/31 (b)

     1,725       978,713  

San Marcos Unified School District, GO, Election of 2010, Series A:

    

5.00%, 8/01/34

     900       1,001,997  

5.00%, 8/01/38

     760       845,097  

State of California, GO, 5.50%, 4/01/28

     5       5,017  

State of California, GO, Refunding, Various Purposes:

    

5.00%, 9/01/41

     2,300       2,566,501  

5.00%, 10/01/41

     1,300       1,456,273  

State of California, GO, Various Purposes, 5.00%, 4/01/42

     1,500       1,662,225  

Yosemite Community College District, GO, CAB, Election of 2004, Series D, 0.00%, 8/01/36 (b)

     15,000       6,555,750  
    

 

 

 
               94,859,095  

Colorado — 0.6%

    

Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31

     1,885       2,072,086  

Regional Transportation District, COP, Series A, 5.00%, 6/01/39

     540       590,442  
    

 

 

 
               2,662,528  

Florida — 12.6%

    

City of Tallahassee Florida Energy System Revenue, RB, (NPFGC):

    

5.00%, 10/01/32

     2,700       2,763,720  

5.00%, 10/01/37

     6,000       6,138,900  
Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

                

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 4/01/39

   $ 2,175     $ 2,307,849  

County of Duval Florida School Board, COP, Master Lease Program (AGM), 5.00%, 7/01/17 (a)

     4,765       4,848,864  

County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37

     1,250       1,383,225  

County of Hillsborough Florida Aviation Authority, RB, Series A, AMT (AGC), 5.38%, 10/01/33

     2,700       2,843,883  

County of Lee Florida, Refunding ARB, Series A, AMT:

    

5.63%, 10/01/26

     1,280       1,438,515  

5.38%, 10/01/32

     1,700       1,881,832  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B, 6.38%, 7/01/18 (a)

     3,300       3,546,906  

County of Miami-Dade Florida, RB, Seaport:

    

Department, Series A, 6.00%, 10/01/38

     2,755       3,214,672  

Department, Series B, AMT, 6.25%, 10/01/38

     560       663,258  

Department, Series B, AMT, 6.00%, 10/01/42

     895       1,030,986  

Series B, AMT, 6.00%, 10/01/30

     870       1,020,145  

County of Miami-Dade Florida Aviation, Refunding ARB:

    

AMT, 5.00%, 10/01/34

     260       281,289  

Series A, 5.50%, 10/01/36

     6,490       7,109,665  

Series A, AMT, 5.00%, 10/01/32

     3,550       3,855,619  

County of Miami-Dade Florida Educational Facilities Authority, RB, University Miami, Series A, 5.00%, 4/01/40

     3,600       3,927,096  

County of Orange Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project, 5.00%, 8/01/47

     1,080       1,131,581  

County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:

    

5.00%, 10/01/21 (a)

     45       51,721  

5.00%, 10/01/31

     2,780       3,106,650  
 

 

                
2    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

                

County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39

   $ 375     $ 401,123  

Florida Ports Financing Commission,
Refunding RB, State Transportation
Trust Fund, Series B, AMT:

    

5.13%, 6/01/27

     1,395       1,566,529  

5.38%, 10/01/29

     1,900       2,146,734  

Florida State Department of Environmental
Protection, RB, Florida Forever Project,
Series B (NPFGC), 5.00%, 7/01/27

     1,350       1,386,693  

Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/33

     1,620       1,858,950  
    

 

 

 
               59,906,405  

Georgia — 1.1%

    

County of Burke Georgia Development Authority, Refunding RB, Oglethorpe Power-Vogtle Project, Series C, 5.70%, 1/01/43

     3,150       3,248,563  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

     680       780,688  

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

    

5.00%, 4/01/33

     190       201,970  

5.00%, 4/01/44

     855       896,365  
    

 

 

 
               5,127,586  

Illinois — 16.6%

    

City of Chicago Illinois, GO, Refunding, Series A, Project, 5.25%, 1/01/33

     1,615       1,549,318  

City of Chicago Illinois, GO, Series A, 5.25%, 1/01/35

     1,150       1,098,526  

City of Chicago Illinois, Refunding GARB, O’Hare International Airport, Passenger Facility Charge, Series B, AMT, 5.00%, 1/01/31

     2,500       2,704,350  

City of Chicago Illinois, Refunding RB, Series A:

    

Sales Tax Receipts, 5.00%, 1/01/41

     740       750,915  
Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

                

City of Chicago Illinois, Refunding RB, Series A (continued):

    

Waterworks, 2nd Lien (AMBAC), 5.00%, 11/01/36

   $ 1,500     $ 1,503,675  

City of Chicago Illinois Midway International Airport, Refunding RB, 2nd Lien, Series A, AMT, 5.00%, 1/01/34

     1,460       1,559,236  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A, 5.75%, 1/01/39

     5,500       6,171,605  

City of Chicago Illinois O’Hare International Airport, RB, Senior Lien, Series D, 5.25%, 1/01/42

     3,985       4,504,325  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series C, AMT, 5.38%, 1/01/39

     4,090       4,475,933  

City of Chicago Illinois O’Hare International Airport, Refunding RB, Senior Lien, Series B, 5.00%, 1/01/41

     3,800       4,133,032  

City of Chicago Illinois Transit Authority, RB:

    

5.25%, 12/01/49

     710       777,152  

Sales Tax Receipts, 5.25%, 12/01/36

     840       897,481  

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

     380       403,283  

Illinois Finance Authority, RB, Carle Foundation, Series A, 5.75%, 8/15/34

     850       954,244  

Illinois Finance Authority, Refunding RB:

    

Silver Cross Hospital and Medical Centers, 4.13%, 8/15/37

     1,690       1,651,029  

Silver Cross Hospital and Medical Centers, 5.00%, 8/15/44

     470       492,612  

University of Chicago Medical Center, Series B, 4.00%, 8/15/41

     1,100       1,104,510  

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 6/15/30

     18,800       19,264,548  

Illinois State Toll Highway Authority, RB, Series C, 5.00%, 1/01/38

     3,245       3,553,080  
 

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    3


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

                

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A:

    

CAB (NPFGC), 0.00%, 6/15/30 (b)

   $ 15,000     $ 8,070,750  

5.00%, 6/15/42

     235       238,746  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (b)

     4,625       1,119,620  

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

     900       1,023,219  

Regional Transportation Authority, RB, Series B (NPFGC), 5.75%, 6/01/33

     3,200       3,986,880  

State of Illinois, GO:

    

5.25%, 2/01/33

     1,140       1,161,375  

5.50%, 7/01/33

     1,100       1,146,354  

5.25%, 2/01/34

     1,140       1,158,673  

5.50%, 7/01/38

     1,840       1,902,118  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/39

     1,245       1,341,948  
    

 

 

 
               78,698,537  

Indiana — 1.6%

    

Indiana Finance Authority, RB, Series A:

    

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

     1,400       1,573,964  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

     690       714,074  

Private Activity Bond, Ohio River Bridges, AMT, 5.00%, 7/01/40

     1,190       1,207,422  

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:

    

5.75%, 1/01/19 (a)

     255       277,119  

5.75%, 1/01/38

     1,045       1,131,275  

(AGC), 5.25%, 1/01/19 (a)

     460       495,553  

(AGC), 5.25%, 1/01/29

     1,890       2,029,350  
    

 

 

 
               7,428,757  

Iowa — 2.9%

    

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 8/15/19 (a)

     7,700       8,535,681  
Municipal Bonds   

Par  

(000)

    Value  

Iowa (continued)

                

Iowa Student Loan Liquidity Corp., RB,
Senior Series A-2, AMT:

    

5.60%, 12/01/26

   $ 1,345     $ 1,443,145  

5.70%, 12/01/27

     1,340       1,429,968  

5.80%, 12/01/29

     910       968,768  

5.85%, 12/01/30

     1,225       1,305,090  
    

 

 

 
               13,682,652  

Louisiana — 1.1%

    

City of New Orleans Louisiana Aviation Board, RB, Series B, AMT, 5.00%, 1/01/40

     2,260       2,410,403  

Louisiana Public Facilities Authority, RB, Provident Group-Flagship Properties LLC, Series A, 5.00%, 7/01/56

     855       903,547  

Louisiana Public Facilities Authority, Refunding RB, Christus Health, Series B (AGC), 6.50%, 7/01/30

     1,800       1,943,028  
    

 

 

 
               5,256,978  

Massachusetts — 2.3%

    

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 1/01/47

     2,855       3,033,837  

Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue, Series A, 5.00%, 10/01/43

     505       533,098  

Massachusetts HFA, Refunding RB, Series C, AMT:

    

5.00%, 12/01/30

     2,315       2,389,497  

5.35%, 12/01/42

     1,180       1,251,036  

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

     1,720       1,927,260  

Massachusetts Water Resources Authority, Refunding RB, General, Series A (NPFGC), 5.00%, 8/01/34

     1,685       1,715,701  
    

 

 

 
               10,850,429  

Michigan — 7.0%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/18 (a)

     8,300       8,836,097  
 

 

                
4    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

Michigan (continued)

                

City of Detroit Michigan Water Supply System Revenue, RB, Senior Lien, Series A, 5.25%, 7/01/41

   $ 3,000     $ 3,195,330  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     2,500       2,827,950  

Michigan Finance Authority, Refunding RB:

    

Henry Ford Health System, 3.25%, 11/15/42

     1,200       980,364  

Trinity Health Credit Group, 5.00%, 12/01/21 (a)

     25       28,879  

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series D, 5.00%, 9/01/39

     1,470       1,571,063  

Royal Oak Michigan Hospital Finance Authority, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

     3,510       3,900,417  

State of Michigan, RB, GAB (AGM), 5.25%, 9/15/17 (a)

     3,350       3,441,790  

State of Michigan Building Authority, Refunding RB, Facilities Program:

    

Series I-A, 5.38%, 10/15/36

     1,200       1,334,676  

Series I-A, 5.38%, 10/15/41

     1,000       1,110,830  

Series II-A (AGM), 5.25%, 10/15/36

     4,270       4,731,800  

State of Michigan HDA, RB, S/F Housing, Series C, AMT, 5.50%, 12/01/28

     765       797,643  

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

     520       570,367  
    

 

 

 
               33,327,206  

Minnesota — 0.6%

    

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18

     415       454,346  

6.50%, 11/15/38

     2,285       2,467,617  
    

 

 

 
               2,921,963  

Nebraska — 0.2%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

     1,000       1,083,810  
Municipal Bonds   

Par  

(000)

    Value  

Nevada — 0.6%

                

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19 (a)

   $ 1,150     $ 1,267,829  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A, 5.25%, 7/01/42

     1,500       1,622,340  
    

 

 

 
               2,890,169  

New Jersey — 8.9%

    

New Jersey EDA, RB:

    

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 1/01/43

     1,220       1,289,479  

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/31

     12,375       12,696,131  

Private Activity Bond, Goethals Bridge Replacement Project, AMT, 5.13%, 1/01/34

     935       984,864  

Series WW, 5.25%, 6/15/33

     215       219,364  

Series WW, 5.00%, 6/15/34

     280       279,661  

Series WW, 5.00%, 6/15/36

     1,280       1,278,349  

Series WW, 5.25%, 6/15/40

     490       496,262  

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

    

5.50%, 12/01/25

     575       625,922  

5.75%, 12/01/27

     270       295,099  

5.75%, 12/01/28

     290       315,627  

5.88%, 12/01/33

     1,980       2,153,349  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

     1,225       1,246,768  

New Jersey Transportation Trust Fund Authority, RB:

    

Transportation Program, Series AA, 5.25%, 6/15/33

     2,000       2,040,000  

Transportation Program, Series AA, 5.00%, 6/15/38

     2,405       2,392,350  

Transportation System, CAB, Series A, 0.00%, 12/15/29 (b)

     7,500       3,918,375  

Transportation System, Series A, 5.50%, 6/15/41

     1,605       1,639,219  

Transportation System, Series A (NPFGC), 5.75%, 6/15/25

     2,000       2,313,780  

Transportation System, Series AA, 5.50%, 6/15/39

     3,565       3,704,356  

Transportation System, Series B, 5.50%, 6/15/31

     2,750       2,877,985  

Transportation System, Series B, 5.00%, 6/15/42

     725       719,802  
 

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    5


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

                

New Jersey Transportation Trust Fund Authority, RB (continued):

    

Transportation System, Series D, 5.00%, 6/15/32

   $ 825     $ 834,050  
    

 

 

 
               42,320,792  

New Mexico — 0.1%

    

New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 8/01/44

     500       552,025  

New York — 4.1%

    

City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

     5,520       6,321,449  

County of Erie New York Industrial Development Agency, RB, City School District of Buffalo, Series A (AGM), 5.75%, 5/01/17 (a)

     2,000       2,024,860  

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

     1,000       1,131,870  

New York Transportation Development Corp., RB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

     4,005       4,225,035  

State of New York Dormitory Authority,
RB, Series B,
5.75%, 3/15/36

     2,000       2,179,220  

State of New York HFA, RB, Affordable Housing, M/F Housing, Series B, AMT, 5.30%, 11/01/37

     3,350       3,376,699  
    

 

 

 
               19,259,133  

North Carolina — 0.2%

    

North Carolina Housing Finance Agency, RB, Series 31-A, AMT, 5.25%, 7/01/38

     1,035       1,041,303  

Ohio — 0.7%

    

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37

     725       855,087  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:

    

5.25%, 2/15/32

     950       1,080,179  
Municipal Bonds   

Par  

(000)

    Value  

Ohio (continued)

                

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1 (continued):

    

5.25%, 2/15/33

   $ 1,325     $ 1,501,834  
    

 

 

 
               3,437,100  

Pennsylvania — 7.5%

    

Pennsylvania Economic Development Financing Authority, RB, AMT:

    

Pennsylvania Bridge Finco LP, 5.00%, 6/30/42

     1,420       1,498,512  

Pennsylvania Rapid Bridge Finco LP, 5.00%, 12/31/34

     3,420       3,650,063  

Pennsylvania Rapid Bridge Finco LP, 5.00%, 12/31/38

     11,890       12,537,886  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 9/01/50

     4,575       5,032,820  

Pennsylvania Turnpike Commission, RB:

    

Series A, 5.00%, 12/01/38

     860       944,581  

Series A-1, 5.00%, 12/01/41

     1,125       1,240,414  

Series B, 5.00%, 12/01/40

     440       483,789  

Series C, 5.50%, 12/01/33

     760       880,642  

Subordinate, Special Motor License Fund, 6.00%, 12/01/20 (a)

     775       905,417  

Subordinate, Special Motor License Fund, 5.50%, 12/01/41

     6,700       7,406,649  

Pennsylvania Turnpike Commission, Refunding RB, Series A-1, 5.00%, 12/01/40

     1,040       1,137,708  
    

 

 

 
               35,718,481  

Rhode Island — 1.5%

    

Rhode Island Commerce Corp., RB, Airport Corporation, 5.00%, 7/01/46

     300       327,519  

Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 6/01/45

     7,180       6,784,167  
    

 

 

 
               7,111,686  

South Carolina — 5.9%

    

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

    

5.50%, 7/01/38

     1,500       1,657,425  

5.50%, 7/01/41

     2,725       3,014,259  
 

 

                
6    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds   

Par  

(000)

    Value  

South Carolina (continued)

                

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM),
6.50%, 8/01/39

   $ 320     $ 372,973  

South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

     3,160       3,421,048  

South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/40

     2,500       2,719,775  

State of South Carolina Public Service Authority, RB, Santee Cooper:

    

Series A, 5.50%, 12/01/54

     9,985       11,245,606  

Series E, 5.50%, 12/01/53

     985       1,107,672  

State of South Carolina Public Service Authority, Refunding RB:

    

Santee Cooper, Series B, 5.00%, 12/01/38

     2,850       3,158,826  

Series E, 5.25%, 12/01/55

     1,440       1,577,246  
    

 

 

 
        28,274,830  

Texas — 12.2%

    

Bell County Health Facility Development Corp., RB, Lutheran General Health Care System, 6.50%, 7/01/19 (d)

     770       825,140  

Central Texas Turnpike System, Refunding RB, CAB, Series B, 0.00%, 8/15/37 (b)

     1,215       517,383  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

    

6.00%, 5/15/19 (a)

     2,700       2,991,249  

6.00%, 11/15/35

     150       165,714  

City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38

     760       849,976  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36 (b)

     2,870       1,261,049  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

     1,100       1,227,369  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT:

    

5.00%, 11/01/38

     8,550       9,191,592  

5.00%, 11/01/42

     1,500       1,610,505  
Municipal Bonds   Par  
(000)
    Value  

Texas (continued)

               

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

  $ 1,325     $ 1,518,079  

Leander ISD, GO, Refunding, CAB, Series D, 0.00%, 8/15/38 (b)

    4,665       1,889,232  

Lone Star College System, GO, 5.00%, 8/15/18 (a)

    4,800       5,090,400  

North Texas Tollway Authority, Refunding RB:

   

1st Tier System (NPFGC), 5.75%, 1/01/18

    4,615       4,815,337  

1st Tier System (NPFGC), 5.75%, 1/01/40

    1,485       1,538,059  

1st Tier System, Series A, 6.00%, 1/01/19 (a)

    2,745       2,994,987  

1st Tier System, Series A (NPFGC), 6.00%, 1/01/28

    635       688,905  

1st Tier System, Series S, 5.75%, 1/01/18

    6,200       6,469,142  

Series B, 5.00%, 1/01/40

    1,375       1,519,114  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, CAB (b):

   

0.00%, 9/15/35

    3,180       1,367,146  

0.00%, 9/15/36

    6,015       2,438,842  

0.00%, 9/15/37

    4,305       1,642,185  

Texas Municipal Gas Acquisition & Supply Corp. III, RB:

   

5.00%, 12/15/32

    1,060       1,126,335  

Natural Gas Utility Improvements, 5.00%, 12/15/31

    1,600       1,705,344  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45

    1,745       1,830,784  

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

    2,330       2,538,838  
   

 

 

 
        57,812,706  

Washington — 2.2%

   

Central Puget Sound Regional Transit Authority, RB,
Series A, 5.00%, 11/01/17 (a)

    2,000       2,061,940  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    1,380       1,508,368  
 

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    7


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds    Par  
(000)
    Value  

Washington (continued)

                

Washington Health Care Facilities Authority, RB:

    

MultiCare Health System, Remarketing, Series B, 5.00%, 8/15/44

   $ 4,000     $ 4,320,560  

Providence Health & Services, Series A, 5.00%, 10/01/39

     1,525       1,624,033  

Providence Health & Services, Series A, 5.25%, 10/01/39

     850       913,988  
    

 

 

 
               10,428,889  

Wisconsin — 0.6%

    

Public Finance Authority, RB, KU Campus Development Corp., Central District Development Project, 5.00%, 3/01/46

     900       984,447  

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33

     1,850       2,005,603  
    

 

 

 
               2,990,050  
Total Municipal Bonds 113.8%              540,560,343  
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

              

California — 1.9%

    

County of San Diego California Water Authority Financing Corp., COP, Refunding, Series A (AGM) (a):

    

5.00%, 5/01/18

     858       901,120  

5.00%, 5/01/18

     4,312       4,530,585  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

     2,639       2,950,810  

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19 (a)

     509       559,131  
    

 

 

 
               8,941,646  

Colorado — 0.3%

    

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (f)

     1,220       1,266,757  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   Par  
(000)
    Value  

Connecticut — 0.4%

                

Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

   $ 1,891     $ 2,067,576  

District of Columbia — 1.1%

    

District of Columbia, RB, Series A, 5.50%, 12/01/30 (f)

     1,319       1,464,011  

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

     3,400       3,775,190  
    

 

 

 
               5,239,201  

Florida — 9.9%

    

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

     2,390       2,627,423  

County of Miami-Dade Florida Water & Sewer System, (AGC), 5.00%, 10/01/39

     12,729       13,971,210  

County of Miami-Dade School Board, COP, Refunding, 5.25%, 5/01/18 (a)

     11,350       11,947,123  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/19 (a)

     3,544       3,914,958  

County of Seminole Florida, Refunding RB, Series B (NPFGC), 5.25%, 10/01/31

     6,300       7,760,403  

Jacksonville Electric Authority Florida, RB, Sub-Series A, 5.63%, 10/01/32

     4,315       4,528,883  

State of Florida Board of Education, GO, Refunding, Series C, 5.00%, 6/01/18

     2,399       2,456,616  
    

 

 

 
               47,206,616  

Illinois — 6.9%

    

City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien (AGM), 5.25%, 11/01/33

     14,427       14,975,621  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/19 (a)(f)

     6,198       6,772,378  

State of Illinois Toll Highway Authority, RB:

    

Senior Priority, Series A, 5.00%, 1/01/40

     3,721       4,090,164  

Senior Priority, Series B, 5.50%, 1/01/18 (a)

     2,000       2,082,470  

Senior, Series B, 5.00%, 1/01/40

     1,409       1,553,165  
 

 

                
8    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   Par  
(000)
    Value  

Illinois (continued)

                

State of Illinois Toll Highway Authority, RB (continued):

    

Series A, 5.00%, 1/01/38

   $ 2,878     $ 3,163,164  
    

 

 

 
               32,636,962  

Kansas — 1.6%

    

County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 9/01/47

     6,444       7,593,357  

Maryland — 0.9%

    

City of Baltimore Maryland Water Utility Fund, RB,
Sub-Water Projects, Series A, 5.00%, 7/01/41

     3,845       4,347,393  

Massachusetts — 0.5%

    

Commonwealth of Massachusetts, GO, Series A, 5.00%, 3/01/46

     2,022       2,254,754  

Michigan — 3.0%

    

Michigan Finance Authority, RB, Beaumont Health Credit Group, 5.00%, 11/01/44

     2,701       2,918,838  

Michigan Finance Authority, Refunding RB, Hospital, Trinity Health Credit Group, 5.00%, 12/01/39

     9,055       10,140,604  

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

     1,180       1,297,835  
    

 

 

 
               14,357,277  

Nevada — 2.8%

    

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19 (a)(f)

     5,007       5,519,931  

County of Clark Nevada Water Reclamation District, GO, Limited Tax, Series B, 5.75%, 7/01/19 (a)

     2,429       2,691,611  

Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 6/01/46

     4,720       5,327,464  
    

 

 

 
               13,539,006  

New Jersey — 0.8%

    

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 5/01/51

     1,120       1,273,675  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   Par  
(000)
    Value  

New Jersey (continued)

                

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (f)

   $ 2,581     $ 2,621,676  
    

 

 

 
               3,895,351  

New York — 8.6%

    

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A:

    

5.75%, 6/15/18 (a)

     808       854,836  

5.75%, 6/15/40

     2,701       2,858,950  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     7,641       8,478,530  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2014, Series DD, 5.00%, 6/15/35

     2,280       2,585,953  

Metropolitan Transportation Authority, RB,
Sub-Series D-1, 5.25%, 11/15/44

     4,750       5,419,893  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

     2,060       2,332,353  

Port Authority of New York & New Jersey, RB, 169th Series, AMT, 5.00%, 10/15/34

     10,830       11,660,120  

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 198th Series, 5.25%, 11/15/56

     3,081       3,524,005  

State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36

     1,534       1,671,389  

Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34 (f)

     1,500       1,602,165  
    

 

 

 
               40,988,194  

Ohio — 0.2%

    

State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34

     780       832,900  
 

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    9


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   Par  
(000)
    Value  

Pennsylvania — 0.3%

                

County of Westmoreland Pennsylvania Municipal Authority, RB, Westmoreland County, Pennsyllvania (BAM), 5.00%, 8/15/42

   $ 1,220     $ 1,342,695  

South Carolina — 1.1%

    

South Carolina Public Service Authority, Refunding RB, Series A (a):

    

5.50%, 1/01/19

     374       405,032  

5.50%, 1/01/19

     4,327       4,683,309  
    

 

 

 
               5,088,341  

Texas — 4.6%

    

Clear Creek Independent School District, GO, Refunding, Schoolbuilding (PSF-GTD):

    

5.00%, 2/15/17 (a)

     4,859       4,866,715  

5.00%, 2/15/33

     1,041       1,043,079  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38

     879       961,928  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System, Series A, 5.00%, 2/15/41

     4,720       5,245,430  

Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse (PSF-GTD):

    

5.00%, 2/15/17 (a)

     4,584       4,591,359  

5.00%, 2/15/32

     166       166,526  

Dallas Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/37

     4,501       4,841,274  
    

 

 

 
               21,716,311  

Virginia — 0.1%

    

County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System:

    

5.50%, 5/15/19 (a)

     157       170,866  

5.50%, 5/15/35

     292       317,447  
    

 

 

 
               488,313  

Washington — 1.5%

    

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (a)

     2,504       2,582,059  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

   Par  
(000)
    Value  

Washington (continued)

                

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38

   $ 3,930     $ 4,542,962  
    

 

 

 
               7,125,021  

Wisconsin — 0.6%

    

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group:

    

Series A, 5.00%, 4/01/42

     640       686,886  

Series C, 5.25%, 4/01/39

     2,000       2,103,540  
    

 

 

 
               2,790,426  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts 47.1%

             223,718,097  
Total Long-Term Investments
(Cost — $719,758,469) — 160.9%
             764,278,440  
    
   
Short-Term Securities   
Shares
        

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.50% (g)(h)

     8,382,648       8,383,486  
    

 

 

 

Total Short-Term Securities (Cost — $8,383,339) — 1.8%

 

    8,383,486  
Total Investments (Cost — $728,141,808*) — 162.7%       772,661,926  
Other Assets Less Liabilities 0.0%       72,908  

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable
(25.6)%

 

    (121,480,332

VRDP Shares at Liquidation Value,
Net of Deferred Offering Costs
(37.1)%

 

    (176,351,827
    

 

 

 

Net Assets Applicable to Common Shares 100.0%

 

  $ 474,902,675  
    

 

 

 

*  As of January 31, 2017, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

   

Tax cost

     $ 607,712,335  
    

 

 

 

Gross unrealized appreciation

     $ 47,024,686  

Gross unrealized depreciation

       (3,350,758
    

 

 

 

Net unrealized appreciation

     $ 43,673,928  
    

 

 

 
 

 

                
10    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

Notes to Schedule of Investments

 

(a)   U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(b)   Zero-coupon bond.

 

(c)   Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

 

(d)   Security is collateralized by municipal bonds or U.S. Treasury obligations.

 

(e)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

 

(f)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between April 1, 2017 to December 1, 2029 is $18,678,624.

 

(g)   During the period ended January 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate   Shares
Held at
April
30, 2016
    Net
Activity
    Shares
Held at
January
31, 2017
    Value at
January
31, 2017
    Income     Net
Realized
Gain1
    Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

    2,644,850       5,737,798       8,382,648     $ 8,383,486     $ 10,415     $ 1,325     $ 147  

 

1   

Includes net capital gain distributions.

(h)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

Contracts
Short
    Issue   Expiration   Notional
Value
    Unrealized
Appreciation
(Depreciation)
 
  (51   5-Year U.S. Treasury Note   March 2017   $ 6,011,227     $ (4,730
  (211   10-Year U.S. Treasury Note   March 2017   $ 26,262,906       (32,323
  (172   Long U.S. Treasury Bond   March 2017   $ 25,945,125       61,247  
  (22   Ultra U.S. Treasury Bond   March 2017   $ 3,535,125       (3,908
 

Total

    $ 20,286  

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
BHAC    Berkshire Hathaway Assurance Corp.
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
ERB    Education Revenue Bonds
GAB    Grant Anticipation Bonds

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    11


Schedule of Investments (continued)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
GTD    Guaranteed
HDA    Housing Development Authority
HFA    Housing Finance Agency
IDA    Industrial Development Authority
ISD    Independent School District
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
PSF-GTD    Permanent School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

   

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 Investments include equity or debt issued by privately-held companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

                
12    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (concluded)

  

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

           $ 764,278,440                 $ 764,278,440  

Short-Term Securities

  $ 8,383,486                            8,383,486  
 

 

 

 

Total

  $ 8,383,486        $ 764,278,440                 $ 772,661,926  
 

 

 

 

Derivative Financial Instruments 2

                

Assets:

                

Interest rate contracts

  $ 61,247                          $ 61,247  

Liabilities:

                

Interest rate contracts

    (40,961                          (40,961
 

 

 

 

Total

  $ 20,286                          $ 20,286  
 

 

 

 

 

  1   

See above Schedule of Investments for values in each state or political subdivision.

 

  2   

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3        Total  

Liabilities:

                

TOB Trust Certificates

           $ (121,275,663               $ (121,275,663

VRDP Shares at Liquidation Value

             (176,600,000                 (176,600,000
 

 

 

 

Total

           $ (297,875,663               $ (297,875,663
 

 

 

 

During the period ended January 31, 2017, there were no transfers between levels.

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JANUARY 31, 2017    13


Item 2 – Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are 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.

BlackRock MuniYield Quality Fund, Inc.

By:    /s/ John M. Perlowski                

         John M. Perlowski

         Chief Executive Officer (principal executive officer) of

         BlackRock MuniYield Quality Fund, Inc.

Date: March 23, 2017

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/ John M. Perlowski                

         John M. Perlowski

         Chief Executive Officer (principal executive officer) of

         BlackRock MuniYield Quality Fund, Inc.

Date: March 23, 2017

By:    /s/ Neal J. Andrews                    

         Neal J. Andrews

         Chief Financial Officer (principal financial officer) of

         BlackRock MuniYield Quality Fund, Inc.

Date: March 23, 2017