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 811-6501
Name of Fund: MuniYield Michigan Insured Fund II, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniYield Michigan Insured Fund II, 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: 10/31/2006
Date of reporting period: 11/01/05 - 01/31/06
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of January 31, 2006 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 146.1% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,485
2,000 Anchor Bay, Michigan, School District, School Building and Site, GO, Series I, 6%
due 5/01/2009 (c)(f) 2,156
3,165 Anchor Bay, Michigan, School District, School Building and Site, GO, Series II, 5.75%
due 5/01/2010 (c)(f) 3,443
50 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 54
2,100 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,264
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,070
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,077
2,420 Delta County, Michigan, Economic Development Corporation, Environmental Improvement
Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25% due 4/15/2012 (f) 2,766
2,000 Detroit, Michigan, City School District (School Building and Site Improvement), GO,
Series A, 5% due 5/01/2013 (c)(f) 2,156
1,480 Detroit, Michigan, City School District (School Building and Site Improvement), GO,
Series A, 5.375% due 5/01/2013 (c)(f) 1,631
1,000 Detroit, Michigan, Water Supply System Revenue Bonds, DRIVERS, Series 200, 8.149%
due 7/01/2011 (c)(f)(g) 1,227
4,600 Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A, 5%
due 7/01/2034 (e) 4,735
2,000 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5.25% due 7/01/2032 (e) 2,112
4,400 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5% due 7/01/2034 (e) 4,529
2,500 Dickinson County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (International Paper Company Project), Series A,
5.75% due 6/01/2016 2,625
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (h) 2,282
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured Fund II, 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
RIB Residual Interest Bonds
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of January 31, 2006 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan $ 1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due 5/01/2009 (d)(f) $ 1,723
(concluded)
6,300 East Grand Rapids, Michigan, Public School District, GO, 6% due 5/01/2009 (d)(f) 6,792
2,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25% due
5/01/2023 (d) 2,176
1,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,045
1,250 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 1,301
385 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 5.375% due 7/01/2020 (h) 395
775 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 6% due 7/01/2020 (h) 845
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,871
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due 5/01/2028 (c) 3,805
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2017 (c) 1,096
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2018 (c) 1,096
1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2019 (c) 1,206
535 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50%
due 10/01/2012 (a)(f) 593
130 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50%
due 10/01/2012 (a)(f) 144
805 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2018 (a) 883
190 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2019 (a) 208
1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and Improvement
Bonds, Series A, 5.50% due 1/01/2022 (c) 1,723
1,900 Grand Rapids, Michigan, Water Supply Revenue Bonds, 5% due 1/01/2035 (c) 1,978
225 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding,
5% due 5/01/2034 (c) 233
1,075 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 1,180
3,425 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 3,759
1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due
11/01/2011 (e)(f) 1,408
2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,148
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 2,769
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,266
7,550 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding
Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2008 (e)(f) 7,960
3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A,
5.50% due 7/15/2011 (e)(f) 3,295
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,554
1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Hillsdale College Project), 5% due 3/01/2035 1,143
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding
Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,052
550 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for
Creative Studies), 5.85% due 12/01/2022 565
1,000 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for
Creative Studies), 5.90% due 12/01/2027 1,026
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT,
Series XVII-B, 5.40% due 6/01/2018 (a) 3,088
1,185 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.67%** due 10/15/2009 (a)(b) 1,039
1,675 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.77%** due 10/15/2010 (a)(b) 1,409
2,675 Michigan State Building Authority Revenue Bonds, GO, RIB, Series 481, 7.72%
due 4/15/2009 (e)(g) 3,049
2,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2029 (e) 2,078
5,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2033 (a) 5,211
3,500 Michigan State Building Authority, Revenue Refunding Bonds, RIB, Series 517X, 7.72%
due 10/15/2010 (d)(g) 4,140
3,870 Michigan State COP, 5.50% due 6/01/2010 (a)(f) 4,167
5,380 Michigan State COP, RIB, Series 530, 8.22% due 9/01/2011 (e)(g) 6,417
1,500 Michigan State Comprehensive Transportation Revenue Refunding Bonds, Series A, 5.50%
due 11/01/2018 (d) 1,635
635 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (e) 641
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,071
1,300 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Crittenton
Hospital), Series A, 5.625% due 3/01/2027 1,377
1,250 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Sparrow
Obligation Group), 5.625% due 11/15/2031 1,308
2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,039
7,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 7,699
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 1,100
3,760 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension Health
Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,151
3,215 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Health
Services), Series X, 6% due 8/15/2009 (e)(f) 3,518
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 6% due 5/15/2014 (e) 1,079
2,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 5.75% due 5/15/2029 (e) 2,129
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health
Credit), Series C, 5.375% due 12/01/2023 1,054
3,450 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health
Credit), Series C, 5.375% due 12/01/2030 3,617
1,900 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health
Credit), Series D, 5% due 8/15/2034 1,946
5,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health),
Series A, 6% due 12/01/2027 (a) 6,065
7,090 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, 5% due
11/15/2036 (e) 7,302
8,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 8,390
2,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,302
3,200 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,295
1,375 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Dow
Chemical Company Project), AMT, 5.50% due 12/01/2028 1,461
6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue
Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 8,511
1,200 New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5% due
5/01/2035 (d) 1,249
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site,
GO, 5.50% due 11/01/2012 (d)(f) 1,105
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Development Area Number 3), 5.375% due 6/01/2017 (h) 1,049
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2014 (d)(f) 1,085
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
11/01/2011 (e)(f) 2,085
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,606
1,450 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2024 (c) 1,522
1,000 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2034 (c) 1,036
6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 9.47% due 8/01/2024 (a)(g) 7,617
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,883
1,950 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5.25%
due 5/01/2027 (d) 2,087
1,000 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5%
due 5/01/2029 (d) 1,041
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,040
2,015 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,103
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne
County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,798
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (e) 1,221
4,090 Wayne County, Michigan, Airport Authority Revenue Bonds, DRIVERS, AMT, Series 1081-Z,
7.135% due 6/01/2013 (e)(g) 4,524
7,100 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne
County Airport), AMT, 5% due 12/01/2034 (e) 7,238
5,300 Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5% due 6/01/2030 (e) 5,533
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,385
Puerto Rico - 7.3% 3,000 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue
Refunding Bonds, Series K, 5% due 7/01/2040 3,031
11,700 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital
Appreciation Revenue Bonds, Series A, 4.66%** due 7/01/2036 (a) 2,788
4,075 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due
7/01/2035 (c) 4,255
2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R,
Series 16 HH, 8.183% due 7/01/2013 (d)(g) 2,727
Total Municipal Bonds (Cost - $253,423) - 153.4% 270,146
Shares
Held Short-Term Securities
2,732 CMA Michigan Municipal Money Fund (i) 2,732
Total Short-Term Securities (Cost - $2,732) - 1.6% 2,732
Total Investments (Cost - $256,155*) - 155.0% 272,878
Other Assets Less Liabilities - 1.3% 2,238
Preferred Stock, at Redemption Value - (56.3%) (99,057)
----------
Net Assets Applicable to Common Stock - 100.0% $ 176,059
==========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2006, as computed for federal income tax purposes, were
as follows:
Aggregate cost $ 256,156
==============
Gross unrealized appreciation $ 17,215
Gross unrealized depreciation (493)
--------------
Net unrealized appreciation $ 16,722
==============
** Represents a zero coupon bond; the interest rate shown reflects the effective
yield at the time of purchase.
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The rate disclosed is that currently in effect. This rate changes periodically
and inversely based upon prevailing market rates.
(h) ACA Insured.
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (3,881) $ 18
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 II, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Michigan Insured Fund II, Inc.
Date: March 20, 2006
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniYield Michigan Insured Fund II, Inc.
Date: March 20, 2006
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
MuniYield Michigan Insured Fund II, Inc.
Date: March 20, 2006