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: 05/01/06 - 07/31/06
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2006 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 150.8% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,465
2,000 Anchor Bay, Michigan, School District, School Building and Site, GO,
Series I, 6% due 5/01/2009 (c)(f) 2,115
3,165 Anchor Bay, Michigan, School District, School Building and Site, GO,
Series II, 5.75% due 5/01/2010 (c)(f) 3,379
2,275 Bay City, Michigan, School District, School Building & Site, GO, 5% due
5/01/2031 (d) 2,353
50 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 53
2,100 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,224
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,051
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,009
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) 2,713
2,000 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Refunding, Series A, 5% due 5/01/2021 (d) 2,085
2,000 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series A, 5% due 5/01/2013 (c)(f) 2,129
1,480 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series A, 5.375% due 5/01/2013 (c)(f) 1,608
1,900 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series B, 5% due 5/01/2028 (c) 1,940
1,000 Detroit, Michigan, Water Supply System Revenue Bonds, DRIVERS, Series 200,
5.75% due 7/01/2011 (c)(f)(g) 1,189
4,600 Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A,
5% due 7/01/2034 (e) 4,691
2,000 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5.25% due
7/01/2032 (e) 2,162
4,400 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5% due
7/01/2034 (e) 4,487
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 2,652
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding
Bonds, 5.80% due 11/01/2024 (h) 2,261
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
M\F Multi-Family
RIB Residual Interest Bonds
MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2006 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan $ 1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due
(concluded) 5/01/2009 (d)(f) $ 1,692
6,300 East Grand Rapids, Michigan, Public School District, GO, 6% due 5/01/2009 (d)(f) 6,663
2,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25%
due 5/01/2023 (d) 2,133
1,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,034
1,250 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 1,287
385 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 5.375% due 7/01/2020 (h) 392
775 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 6% due 7/01/2020 (h) 831
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,852
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due
5/01/2028 (c) 3,763
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2017 (c) 1,076
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2018 (c) 1,076
1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2019 (c) 1,183
535 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2012 (a)(f) 583
130 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2012 (a)(f) 142
805 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2018 (a) 868
190 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2019 (a) 205
1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and Improvement
Bonds, Series A, 5.50% due 1/01/2022 (c) 1,687
225 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2034 (c) 231
1,075 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 1,157
3,425 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 3,686
1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due
11/01/2011 (e)(f) 1,383
2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,109
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 2,739
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,192
3,750 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2008 (e)(f) 3,898
3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A, 5.50% due 7/15/2011 (e)(f) 3,244
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,531
1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Bonds (Hillsdale College Project), 5% due 3/01/2035 1,138
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,042
550 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College
for Creative Studies), 5.85% due 12/01/2022 579
1,000 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College
for Creative Studies), 5.90% due 12/01/2027 1,047
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT,
Series XVII-B, 5.40% due 6/01/2018 (a) 3,069
1,185 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.67% due 10/15/2009 (a)(b)(l) 1,044
1,675 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.77% due 10/15/2010 (a)(b)(l) 1,416
2,675 Michigan State Building Authority Revenue Bonds, GO, RIB, Series 481, 7.09% due
4/15/2009 (e)(g) 2,950
2,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2029 (e) 2,056
4,600 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2033 (a) 4,754
3,500 Michigan State Building Authority, Revenue Refunding Bonds, RIB, Series 517X,
7.09% due 10/15/2010 (d)(g) 4,000
3,870 Michigan State COP, 5.50% due 6/01/2010 (a)(f) 4,094
5,380 Michigan State COP, RIB, Series 530, 7.59% due 9/01/2011 (e)(g) 6,228
1,000 Michigan State, Comprehensive Transportation Revenue Refunding Bonds, 5% due
5/15/2026 (d) 1,041
1,500 Michigan State, Comprehensive Transportation Revenue Refunding Bonds, Series A,
5.50% due 11/01/2018 (d) 1,605
285 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (e) 287
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,060
1,300 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,370
1,250 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Sparrow Obligation Group), 5.625% due 11/15/2031 1,305
2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,022
4,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, 5% due
11/15/2036 (e) 4,109
7,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 7,560
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 1,080
3,760 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,075
4,065 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford
Health System), Series A, 5% due 11/15/2038 4,104
3,215 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy
Health Services), Series X, 6% due 8/15/2009 (e)(f) 3,451
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 6% due 5/15/2014 (e) 1,060
2,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 5.75% due 5/15/2029 (e) 2,103
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit), Series C, 5.375% due 12/01/2023 1,042
3,450 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit), Series C, 5.375% due 12/01/2030 3,599
1,900 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit), Series D, 5% due 8/15/2034 1,938
5,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health), Series A, 6% due 12/01/2027 (a) 5,950
1,000 Michigan State Housing Development Authority, Limited Obligation M/F Housing
Revenue Bonds (Deaconess Towers Apartments), AMT, 5.25% due 2/20/2048 (k) 1,005
9,500 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.55% due 9/01/2029 (e) 9,942
2,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), Series AA, 6.95% due 5/01/2011 (c) 2,253
3,200 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), Series C, 5.45% due 9/01/2029 3,314
1,375 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Dow
Chemical Company Project), AMT, 5.50% due 12/01/2028 1,464
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) 8,319
1,200 New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5% due
5/01/2035 (d) 1,237
600 Oak Park, Michigan, Street Improvement, GO, 5% due 5/01/2030 (e) 621
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site,
GO, 5.50% due 11/01/2012 (d)(f) 1,089
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Development Area Number 3), 5.375% due 6/01/2017 (h) 1,040
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2014 (d)(f) 1,070
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
11/01/2011 (e)(f) 2,050
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,577
3,050 Roseville, Michigan, School District, School Building and Site, GO, Refunding, 5%
due 5/01/2031 (d) 3,154
1,450 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2024 (c) 1,504
1,000 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2034 (c) 1,028
6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 8.84% due 8/01/2024 (a)(g) 7,360
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,829
1,950 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A,
5.25% due 5/01/2027 (d) 2,058
1,000 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A,
5% due 5/01/2029 (d) 1,030
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,029
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan
Wayne County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,716
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (e) 1,210
4,090 Wayne County, Michigan, Airport Authority Revenue Bonds, DRIVERS, AMT, Series
1081-Z, 6.51% due 6/01/2013 (e)(g) 4,481
7,100 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan
Wayne County Airport), AMT, 5% due 12/01/2034 (e) 7,205
5,300 Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5% due 6/01/2030 (e) 5,472
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,370
Puerto Rico - 4.4% 1,100 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series K, 5% due 7/01/2040 1,102
11,700 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and
Capital Appreciation Revenue Bonds, Series A, 4.66% due 7/01/2036 (a)(l) 2,775
1,000 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax Revenue
Bonds, Series B, 5% due 7/01/2041 1,001
2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts,
Class R, Series 16 HH, 7.503% due 7/01/2013 (d)(g) 2,634
Total Municipal Bonds (Cost - $254,370) - 155.2% 267,320
Shares
Held Short-Term Securities
2,685 CMA Michigan Municipal Money Fund, 2.96% (i)(j) 2,685
Total Short-Term Securities (Cost - $2,685) - 1.5% 2,685
Total Investments (Cost - $257,055*) - 156.7% 270,005
Other Assets Less Liabilities - 0.8% 1,311
Preferred Stock, at Redemption Value - (57.5%) (99,057)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 172,259
===========
* The cost and unrealized appreciation (depreciation) of investments
as of July 31, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 257,056
===================
Gross unrealized appreciation $ 13,482
Gross unrealized depreciation (533)
-------------------
Net unrealized appreciation $ 12,949
===================
(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 3,928 $71
(j) Represents the current yield as of July 31, 2006.
(k) GNMA Collateralized.
(l) Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase.
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: September 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: September 20, 2006
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
MuniYield Michigan Insured Fund II, Inc.
Date: September 20, 2006