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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000891092-02-000865.txt : 20020719
<SEC-HEADER>0000891092-02-000865.hdr.sgml : 20020719
<ACCEPTANCE-DATETIME>20020718144400
ACCESSION NUMBER:		0000891092-02-000865
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20020822
FILED AS OF DATE:		20020718

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORPORATE HIGH YIELD FUND III INC
		CENTRAL INDEX KEY:			0001049549
		IRS NUMBER:				223560585
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-08497
		FILM NUMBER:		02705625

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		STREET 2:		C/O MERRILL LYNCH ASSET MANAGEMENT
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536

	MAIL ADDRESS:	
		STREET 1:		MERRILL LYNCH MANAGEMENT
		STREET 2:		PO BOX 9011 INFO. SYSTEMS, SECT. 2-B
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIASSETS FUND INC
		CENTRAL INDEX KEY:			0000901243
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07642
		FILM NUMBER:		02705626

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822800

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MUNIINCOME FUND INC
		DATE OF NAME CHANGE:	19930517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORPORATE HIGH YIELD FUND INC
		CENTRAL INDEX KEY:			0000900724
		IRS NUMBER:				223238901
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07634
		FILM NUMBER:		02705624

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
		BUSINESS PHONE:		6092822800

	MAIL ADDRESS:	
		STREET 1:		800 SCUDDERS MILL ROAD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08536
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>e13622def_14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<html>
<head>
<title> DEF 14A </title>
</head>
<body>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->









<p><table width=600><tr><td  align=center><font size=2><B>As filed with the Securities
and Exchange Commission on July 18, 2002</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>SCHEDULE 14A <BR>RULE 14a-101</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>INFORMATION REQUIRED IN PROXY
STATEMENT <BR>SCHEDULE 14A INFORMATION <BR>PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE
SECURITIES <BR>EXCHANGE ACT OF 1934 (AMENDMENT NO. )</B></font></td></tr></table>

<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="left" valign="bottom"><font size="2">Filed by the Registrant [X]</font></td>
    <td>&nbsp;</td>
    <td align="right" valign="bottom"><font size="2">Filed by a party other than the Registrant [&nbsp;&nbsp;   ]
</font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2>Check the appropriate box:</font></td></tr></table>


<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp;   ]    Preliminary Proxy Statement</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[X]      Definitive Proxy Statement</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp;   ]    Definitive Additional Materials</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp;   ]    Soliciting Material Pursuant to Rule 14a-12

         </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2">[&nbsp;&nbsp;   ]    Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
</font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC.
<br>
      CORPORATE HIGH YIELD FUND III, INC. <br>
      MUNIASSETS FUND, INC. <br>
      </B></font><font size=2><b>P.O. Box 9011, Princeton, New
Jersey 08543-9011 <br>
      </b></font>
      <hr size="1" noshade>
      <font size=1><b>(Name of Registrant as Specified
in Its Charter)</b></font><font size=2><b>
      </b></font><font size=3><B>
      </B></font></td>
  </tr></table>

<p>
<p>
<p><table width=600><tr><td align=center>
      <hr size="1" noshade>
      <font size=1><B>(Name of Person(s) Filing Proxy
Statement if other than the Registrant)</B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>Payment of filing fee (Check the appropriate
box):</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> [X] </font></td>
    <td width=90% valign=top><font size="2">No fee required.</font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> [&nbsp; &nbsp;] </font></td>
    <td width=90% valign=top>
      <p><font size="2">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.</font>


</p>
</td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (1) </font></td>
    <td width=90% valign=top><font size=2>Title of each class of securities to
      which transaction applies: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (2) </font></td>
    <td width=90% valign=top><font size=2>Aggregate number of securities to which
      transaction applies: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (3) </font></td>
    <td width=90% valign=top><font size=2>Per unit price or other underlying value
      of transaction computed pursuant to Exchange Act Rule <br>
      0-11 (Set forth the amount on which the filing fee is calculated and state
      how it was determined): <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (4) </font></td>
    <td width=90% valign=top><font size=2>Proposed maximum aggregate value of
      transaction: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>&nbsp;
</p>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp;





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<!-- MARKER PAGE="sheet: 2; page: 2" -->





<p>&nbsp;
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2> (5) </font></td>
    <td width=90% valign=top><font size=2>Total fee paid: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>[&nbsp; &nbsp;]</font></td>
    <td width=90% valign=top><font size=2>Fee paid previously with preliminary
      materials: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>[&nbsp; &nbsp;]</font></td>
    <td width=90% valign=top><font size=2>Check box if any part of the fee is
      offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing
      for which the offsetting fee was paid previously. Identify the previous
      filing by registration statement number, or the form or schedule and the
      date of its filing. <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>
(1) </font></td>
    <td width=90% valign=top><font size=2>Amount previously paid: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>
(2) </font></td>
    <td width=90% valign=top><font size=2>Form, Schedule or Registration Statement
      No.: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>
(3) </font></td>
    <td width=90% valign=top><font size=2>Filing Party: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td width=10% valign=top align="center"><font size=2>
(4) </font></td>
    <td width=90% valign=top><font size=2>Date Filed: <br>
      <br>
      ____________________________________________________________________________
      </font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






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<!-- MARKER PAGE="sheet: 1; page: 1" -->



<p><table width=600><tr><td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC.<BR>
CORPORATE HIGH YIELD FUND III, INC. <BR>MUNIASSETS FUND, INC. <BR>P.O. Box 9011 <BR>Princeton, New
Jersey 08543-9011</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=3><B>NOTICE OF 2002 ANNUAL MEETINGS
OF STOCKHOLDERS</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>


<table width=600><tr><td  align=center><font size=3><B>TO BE HELD ON AUGUST 22, 2002</B></font></td></tr></table>


<p><table width=600><tr><td><font size=2>T<font size=1>O THE</font>
S<font size=1>TOCKHOLDERS OF</font>
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C<font size=1>ORPORATE</font> H<font
size=1>IGH</font> Y<font size=1>IELD </font>
F<font size=1>UND</font>, I<font size=1>NC</font>.<BR>
      &nbsp;&nbsp;&nbsp;&nbsp; C<font size=1>ORPORATE</font> H<font size=1>IGH</font>
      Y<font size=1>IELD</font> F<font size=1>UND</font> III, I<font size=1>NC</font>.
      <BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M<font size=1>UNIASSETS</font> F<font size=1>UND</font>, I<font size=1>NC</font>.:</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY
GIVEN that the 2002 Annual Meeting of Stockholders (each, a &#147;Meeting&#148; and, collectively,
the &#147;Meetings&#148;) of each of Corporate High Yield Fund, Inc. (&#147;Corporate High Yield&#148;),
Corporate High Yield Fund III, Inc. (&#147;Corporate High Yield III&#148;) and MuniAssets Fund,
Inc. (&#147;MuniAssets&#148;) (each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;) will be held at the
offices of Fund Asset Management, L.P. (&#147;FAM&#148;), 800 Scudders Mill Road, Plainsboro, New
Jersey 08536, on Thursday, August 22, 2002 at 10:00 a.m. for the stockholders of
Corporate High Yield, 10:20 a.m. for the stockholders of Corporate High Yield III and
9:40 a.m. for the stockholders of MuniAssets, for the following purposes:</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(1)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>
To elect a Board of Directors of each Fund to serve for the ensuing year or for the
specified term, as applicable, and until their successors have been duly elected and
qualified or until their earlier resignation or removal; and</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(2)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>
To transact such other business as may properly come before the Meetings or any
adjournment thereof.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has fixed the close of business on June 27, 2002 as the record
date (the &#147;Record Date&#148;) for the determination of stockholders entitled to notice of and
to vote at the applicable Meeting or any adjournment thereof.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A complete list of
the stockholders of each Fund entitled to vote at its Meeting will be available and open
to the examination of any stockholder of that Fund for any purpose germane to the Meeting
during ordinary business hours from and after August 8, 2002, at the office of the Funds,
800 Scudders Mill Road, Plainsboro, New Jersey. You are cordially invited to attend the
Meeting of any Fund in which you owned shares on the Record Date. <B>Stockholders who do not
expect to attend a Meeting in person are requested to complete, date and sign the
enclosed form of proxy and return it promptly in the envelope provided for this </B></FONT></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






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<p><table width=600><tr><td><FONT SIZE="2"><B>purpose. If you have been provided with the
opportunity on your proxy card or voting instruction form to provide voting instructions
via telephone or the Internet, please take advantage of these prompt and efficient voting
options.</B> The enclosed proxy is being solicited on behalf of the Board of Directors of
each Fund.</FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any
questions regarding the enclosed proxy material or need assistance in voting your shares,
please contact our proxy solicitor, Georgeson Shareholder at 1-800-645-4519.</font></td></tr></table>

<p><table width=600><tr>
    <td width=288>&nbsp;</td>
    <td width=300><font size=2>By Order of the Boards of Directors<br>
      <br>
      D<font size="1">AVID</font> W. C<font size="1">LAYTON</font> <br>
      <i>Secretary of Corporate High Yield Fund, Inc. and <br>
      Corporate High Yield Fund III, Inc.</i><br>
      <br>
      S<font size="1">TEPHEN</font> B<font size="1">ENHAM</font><br>
      <i>Secretary of MuniAssets Fund, Inc.</i></font></td>
  </tr></table>

<p>
<p><table width=300><tr><td><font size=2>Plainsboro, New Jersey <BR>Dated: July 18, 2002</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






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<!-- MARKER PAGE="sheet: 4; page: 4" -->

<p><table width=600><tr><td  align=center><font size=3><B>COMBINED PROXY STATEMENT</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>


<table width=600><tr><td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC.<BR>
CORPORATE HIGH YIELD FUND III, INC. <BR>MUNIASSETS FUND, INC. <BR>P.O. Box 9011 <BR>Princeton, New
Jersey 08543-9011</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=3><B>2002 ANNUAL MEETINGS OF
STOCKHOLDERS</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=3><B>August 22, 2002</B></font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>

<table width=600><tr><td  align=center><font size=3><B>INTRODUCTION</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Combined
Proxy Statement is furnished in connection with the solicitation of proxies on behalf of
the Boards of Directors of Corporate High Yield Fund, Inc. (&#147;Corporate High Yield&#148;),
Corporate High Yield Fund III, Inc. (&#147;Corporate High Yield III&#148;) and MuniAssets Fund,
Inc. (&#147;MuniAssets&#148;) (each a &#147;Fund&#148; and, collectively, the &#147;Funds&#148;), to be voted at the
2002 Annual Meeting of Stockholders of each Fund (each, a &#147;Meeting&#148; and, collectively,
the &#147;Meetings&#148;), to be held at the offices of Fund Asset Management, L.P. (&#147;FAM&#148;), 800
Scudders Mill Road, Plainsboro, New Jersey 08536, on Thursday, August 22, 2002, at 10:00
a.m. for the stockholders of Corporate High Yield, 10:20 a.m. for the stockholders of
Corporate High Yield III and 9:40 a.m. for the stockholders of MuniAssets. The
approximate mailing date of this Combined Proxy Statement is July 22, 2002.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies received prior to the Meetings will be voted at the applicable Meeting
in accordance with the instructions marked thereon or otherwise as provided therein.
Unless instructions to the contrary are marked, proxies will be voted for the election of
the Director nominees of each Fund. Any proxy may be revoked at any time prior to the
exercise thereof by giving written notice to the Secretary of the applicable Fund at that
Fund&#146;s address indicated above or by voting in person at the Meeting.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has fixed the close of business on June 27, 2002 as the record
date (the &#147;Record Date&#148;) for the determination of stockholders entitled to notice of and
to vote at the applicable Meeting and at any adjournment thereof. Stockholders on the
Record Date will be entitled to one vote for each share held, with no shares having
cumulative voting rights. As of the Record Date, Corporate High Yield had outstanding
24,901,992 shares of common stock, Corporate High Yield III had outstanding 36,396,961
shares of common stock and MuniAssets had outstanding 20,333,910 shares of common stock
(collectively, &#147;Common Stock&#148;). To the knowledge of each Fund, as of the Record Date, no
person is the beneficial owner of five percent or more of the outstanding shares of that
Fund&#146;s common stock.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund knows of no business other than the election of Directors that
will be presented for consideration at its Meeting. If any other matter is properly
presented, it is the intention of the persons named in the enclosed proxy to vote in
accordance with their best judgment.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 5; page: 5" -->

<p><table width=600><tr><td  align=center><font size=3><B>ITEM 1. ELECTION OF DIRECTORS</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meetings of
Corporate High Yield and Corporate High Yield III, the Directors will be elected to serve
until the next annual election of Directors for such Fund and until their successors are
elected and qualified. The Director nominees are James H. Bodurtha, Terry K. Glenn, Joe
Grills, Herbert I. London, Andr&eacute; F. Perold, Roberta Cooper Ramo, Robert S. Salomon, Jr.,
Melvin R. Seiden and Stephen B. Swensrud.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of MuniAssets, pursuant to the Fund&#146;s By-Laws, is divided into three classes,
designated Class I, Class II and Class III, with each class having a term of three years.
The Director nominees for MuniAssets are as follows: James H. Bodurtha for Class I; Terry
K. Glenn, Herbert I. London and Andr&eacute; F. Perold for Class II; and Roberta Cooper Ramo for
Class III. The Director nominees will be elected to serve until the expiration of the
term of each nominee&#146;s designated class and until their successors are elected and
qualified.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is intended
that all properly executed proxies will be voted (unless such authority has been withheld
in the proxy or revoked as described herein) as set forth below:</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>For Corporate High Yield and Corporate High
Yield III:</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies will be voted &#147;FOR&#148; the nine (9) Director nominees listed above.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>For MuniAssets:</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly
executed proxies will be voted</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(1)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>
&#147;FOR&#148; the one (1) Class I Director nominee, James H. Bodurtha, to serve with Joe Grills
and Robert S. Salomon, Jr. who were previously elected Class I Directors, until the 2004
Annual Meeting of Stockholders;</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(2)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>
&#147;FOR&#148; the three (3) Class II Director nominees, Terry K. Glenn, Herbert I. London and
Andre F. Perold, to serve until the 2005 Annual Meeting of Stockholders; and</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(3)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>
&#147;FOR&#148; the one (1) Class III Director nominee, Roberta Cooper Ramo, to serve with Melvin
R. Seiden and Stephen B. Swensrud who were previously elected Class III Directors, until
the 2003 Annual Meeting of Stockholders.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund knows of no reason why the nominees will be unable to serve, but
in the event of any such unavailability, the proxies received will be voted for such
substitute nominee or nominees as that Fund&#146;s Board of Directors may recommend.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
2</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 6; page: 6" -->

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the nominee who is an &#147;interested person,&#148;
as defined in the Investment Company Act of 1940, as amended (the &#147;Investment Company
Act&#148;), of the Funds is set forth below:</font></td></tr></table>


<br>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="108"> <b><font size="1"> Name, Address and Age<br>
      of Nominee </font></b>
      <hr noshade size="1">
    </td>
    <td width="13" align="center">&nbsp;</td>
    <td width="96" align="center"> <b><font size="1"> Position(s)<br>
      Held with Each<br>
      Fund and Length<br>
      of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td width="11" align="center">&nbsp;</td>
    <td width="206" align="center"> <b><font size="1"> Principal Occupation(s)
      <br>
      During Past Five Years </font></b>
      <hr noshade size="1" width="50%">
    </td>
    <td width="10" align="center">&nbsp;</td>
    <td width="78" align="center"> <b><font size="1"> Number of FAM/MLIM- Advised
      Funds<sup>(3)</sup> and Portfolios Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td width="10" align="center">&nbsp;</td>
    <td width="66" align="center"> <b><font size="1"> Public Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width="108"> <font size="1"> Terry K. Glenn (61)* P.O. Box 9011 Princeton,
      New Jersey 08543-9011 </font></td>
    <td width="13"><font size="1"></font></td>
    <td width="96"> <font size="1"> President<sup>(1)</sup> and Director<sup>(2)</sup> of each Fund
      since 1999 </font></td>
    <td width="11"><font size="1"></font></td>
    <td width="206"> <font size="1"> Chairman (Americas Region) since 2000 and
      Executive Vice President since 1983 of FAM and Merrill Lynch Investment
      Managers, L.P. (&#147;MLIM&#148;) (the terms &#147;FAM&#148; and &#147;MLIM&#148;
      include their corporate predecessors); President of Merrill Lynch Mutual
      Funds since 1999; President of FAM Distributors, Inc. (&#147;FAMD&#148;)
      since 1986 and Director thereof since 1991; Executive Vice President and
      Director of Princeton Services, Inc. (&#147;Princeton Services&#148;) since
      1993; President of Princeton Administrators, L.P. (&#147;Princeton Administrators&#148;)
      since 1988; Director of Financial Data Services, Inc. (&#147;FDS&#148;)
      since 1985. </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="78"> <font size="1"> 116 registered investment companies consisting
      of <BR>184 portfolios </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="66"> <font size="1"> None </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>

<table width=600><tr><td width=3% valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Mr.
Glenn is an &#147;interested person,&#148; as defined in the Investment Company Act, of each Fund
based on his positions with FAM, MLIM, FAMD, Princeton Services and Princeton
Administrators. </font></td></tr></table>

<table width=600><tr>
    <td width=3% valign=top><font size="1">(1)</font></td>
    <td width=2%><font size="1"></font></td>
    <td width=95%><font size="1">Mr. Glenn was elected President of each Fund
      in 1999 and serves at the pleasure of the Board
      of Directors. He served as Executive Vice President of Corporate High Yield from 1993 to 1999,
of Corporate High Yield III from 1998 to 1999, and of MuniAssets from 1997 to 1999. Mr. Glenn is also a Director of each Fund.</font></td>
  </tr></table>

<table width=600><tr>
    <td width=3% valign=top><font size="1">(2) </font></td>
    <td width=2%><font size="1"></font></td>
    <td width=95%><font size="1">Serves as Director of Corporate High Yield and
      as Director of Corporate High Yield III until the applicable Fund&#146;s next
      annual election of Directors and until his successor is elected and qualified,
      or until his death or resignation, or removal as provided in the Fund&#146;s
      by-laws or charter or by statute, or until December 31 of the year in which
      he turns 72. Serves as Director of MuniAssets until the expiration of the
      term of his designated class and until his successor is elected and qualified,
      or until his death or resignation, or removal as provided in the Fund&#146;s
      by-laws or charter or by statute, or until December 31 of the year in which
      he turns 72.</font></td>
  </tr></table>

<table width=600><tr>
    <td width=3% valign=top><font size="1">(3) </font></td>
    <td width=2%><font size="1"></font></td>
    <td width=95%><font size="1">The complex of funds advised by FAM and its affiliate,
      MLIM (&#147;FAM/MLIM Advised Funds&#148;).</font></td>
  </tr></table>



<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
biographical and other information relating to the nominees who are not &#147;interested
persons,&#148; as defined in the Investment Company Act, of the Funds is set forth below:</font></td></tr></table>


<br>
<table   cellspacing=0 cellpadding=00 width=600>
  <tr valign="bottom">
    <td rowspan="2" width="108">&nbsp;</td>
    <td rowspan=2 align="center" colspan="6"> <b><font size="1">Position(s) Held
      with Each Fund <br>
      and Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="142">&nbsp;</td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="65"><b></b></td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="58">&nbsp;</td>
  </tr>
  <tr><td></td> </tr>
  <tr valign="bottom">
    <td width="108"> <b><font size="1">Name, Address* and Age of Nominee** </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td align="center" width="8">&nbsp;</td>
    <td align="center" width="53"> <b><font size="1">Corporate <br>
      High Yield&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="7">&nbsp;</td>
    <td align="center" width="59"> <b><font size="1">Corporate <br>
      High<br>
      Yield III&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="7">&nbsp;</td>
    <td align="center" width="61"> <b><font size="1">MuniAssets&#134;&#134;</font></b>
      <hr noshade size="1">
      <b><font size="1"> </font></b></td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="142"> <b><font size="1">Principal Occupation(s)
      During Past Five Years </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="65"> <b><font size="1">Number of FAM/MLIM- <br>
      Advised Funds<br>
      and Portfolios<br>
      Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="58"> <b><font size="1">Public <br>
      Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width="108"> <font size="1">James H. Bodurtha (56) </font></td>
    <td width="8"><font size="1"></font></td>
    <td width="53"> <font size="1">Nominee </font></td>
    <td width="7"><font size="1"></font></td>
    <td width="59"> <font size="1">Nominee </font></td>
    <td width="7"><font size="1"></font></td>
    <td width="61"> <font size="1">Nominee </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="142"> <font size="1">Director and Executive Vice President, The
      China Business Group, Inc. since 1996; Chairman and Chief Executive Officer,
      China Enterprise Management Corporation from 1993 to 1996; Director and
      Chairman, Berkshire Holding Corporation since 1980; Partner, Squire, Sanders
      &amp; Dempsey from 1980 to 1993. </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="65"> <font size="1">39 registered investment companies <br>
      consisting of 68&nbsp;portfolios </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="58"> <font size="1">None </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="right">
    <td><font size="1"><i>(footnotes on page 6)</i></font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 3</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->

<P>
<table   cellspacing=0 cellpadding=00 width=600>
  <tr valign="bottom">
    <td rowspan="2" width="93"><font size="1"></font></td>
    <td rowspan=2 align="center" colspan="6"> <font size="1"><b>Position(s) Held
      with Each Fund <br>
      and Length of Time Served </b> </font>
      <hr noshade size="1">
    </td>
    <td rowspan="2" width="10"><font size="1"></font></td>
    <td rowspan="2" align="center" width="167"><font size="1"></font></td>
    <td rowspan="2" width="11"><font size="1"></font></td>
    <td rowspan="2" align="center" width="67">&nbsp;</td>
    <td rowspan="2" width="10"><font size="1"></font></td>
    <td rowspan="2" align="center" width="59"><font size="1"></font></td>
  </tr>
  <tr><td></td> </tr>
  <tr valign="bottom">
    <td width="93"> <font size="1"><b>Name, Address* and Age of Nominee** </b> </font>
      <hr noshade size="1" align="left" width="90%">
    </td>
    <td align="center" width="8"><font size="1"></font></td>
    <td align="center" width="48"> <font size="1"><b>Corporate High <br>
      Yield&#134; </b> </font>
      <hr noshade size="1">
    </td>
    <td align="center" width="7"><font size="1"></font></td>
    <td align="center" width="50"> <font size="1"><b>Corporate <br>
      High<br>
      Yield III&#134; </b> </font>
      <hr noshade size="1">
    </td>
    <td align="center" width="6"><font size="1"></font></td>
    <td align="center" width="62"> <font size="1"><b>MuniAssets&#134;&#134; </b>
      </font>
      <hr noshade size="1">
    </td>
    <td align="center" width="10"><font size="1"></font></td>
    <td align="center" width="167"> <font size="1"><b>Principal Occupation(s)
      <br>
      During Past Five Years </b> </font>
      <hr noshade size="1" width="60%">
    </td>
    <td align="center" width="11"><font size="1"></font></td>
    <td align="center" width="67"> <font size="1"><b>Number of FAM/MLIM-<br>
      Advised Funds<br>
      and Portfolios<br>
      Overseen </b> </font>
      <hr noshade size="1">
    </td>
    <td align="center" width="10"><font size="1"></font></td>
    <td align="center" width="59"> <font size="1"><b>Public <br>
      Directorships </b> </font>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width="93"> <font size="1">Joe Grills (67) </font></td>
    <td width="8"><font size="1"></font></td>
    <td width="48"> <font size="1">Director since 1994 </font></td>
    <td width="7"><font size="1"></font></td>
    <td width="50"> <font size="1">Director since 1998 </font></td>
    <td width="6"><font size="1"></font></td>
    <td width="62"> <font size="1">Director since 1994 </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="167"> <font size="1">Member of the Committee of Investment of Employee
      Benefit Assets of the Association of Financial Professionals (&#147;CIEBA&#148;)
      since 1986; Member of CIEBA&#146; s Executive Committee since 1988 and its
      Chairman from 1991 to 1992; Assistant Treasurer of International Business
      Machines Corporation (&#147;IBM&#148;) and Chief Investment Officer of IBM
      Retirement Funds from 1986 to 1993; Member of the Investment Advisory Committee
      of the State of New York Common Retirement Fund since 1989; Member of the
      Investment Advisory Committee of the Howard Hughes Medical Institute from
      1997 to 2000; Director, Duke Management Company since 1992 and Vice Chairman
      thereof since 1998; Director, LaSalle Street Fund from 1995 to 2001; Director,
      Kimco Realty Corporation since 1997; Member of the Investment Advisory Committee
      of&nbsp;the Virginia Retirement System since 1998; Director, Montpelier
      Foundation since 1998 and its Vice Chairman since 2000; Member of the Investment
      Committee of the Woodberry Forest School since 2000; Member of the Investment
      Committee of the National Trust for Historic Preservation since&nbsp;2000.
      </font></td>
    <td width="11"><font size="1"></font></td>
    <td width="67"> <font size="1">42 registered investment companies consisting
      of 71&nbsp;portfolios </font></td>
    <td width="10"><font size="1"></font></td>
    <td width="59"> <font size="1">Kimco <br>
      Realty Corporation </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="right">
    <td><font size="1"><i>(footnotes on page 6)</i></font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 4</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->

<P><table   cellspacing=0 cellpadding=00 width=600>
  <tr valign="bottom">
    <td rowspan="2" width="90">&nbsp;</td>
    <td rowspan=2 align="center" colspan="6"> <b><font size="1">Position(s) Held
      with Each Fund <br>
      and Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="153">&nbsp;</td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="68"><b></b></td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="59">&nbsp;</td>
  </tr>
  <tr><td></td> </tr>
  <tr valign="bottom">
    <td width="90"> <b><font size="1">Name, Address* and Age of Nominee** </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td align="center" width="8">&nbsp;</td>
    <td align="center" width="54"> <b><font size="1">Corporate High <br>
      Yield&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="6">&nbsp;</td>
    <td align="center" width="56"> <b><font size="1">Corporate <br>
      High<br>
      Yield III&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="7">&nbsp;</td>
    <td align="center" width="67"> <b><font size="1">MuniAssets&#134;&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="153"> <b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font></b>
      <hr noshade size="1" width="70%">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="68"> <b><font size="1">Number of FAM/MLIM- <br>
      Advised Funds<br>
      and Portfolios<br>
      Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="59"> <b><font size="1">Public <br>
      Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width="90"> <font size="1">Herbert I. London (63) </font></td>
    <td width="8">&nbsp;</td>
    <td width="54"> <font size="1">Nominee </font></td>
    <td width="6">&nbsp;</td>
    <td width="56"> <font size="1">Nominee </font></td>
    <td width="7">&nbsp;</td>
    <td width="67"> <font size="1">Nominee </font></td>
    <td width="10">&nbsp;</td>
    <td width="153"> <font size="1">John M. Olin Professor of Humanities, New
      York University since 1993 and Professor thereof since 1980; President,
      Hudson Institute since 1997 and Trustee thereof since 1980; Dean, Gallatin
      Division of New York University from 1976 to 1993; Distinguished Fellow,
      Herman Kahn Chair, Hudson Institute from 1984 to 1985; Director, Damon Corp.
      from 1991 to 1995; Overseer, Center for Naval Analyses from 1983 to 1993;
      Limited Partner, Hypertech LP since&nbsp;1996. </font></td>
    <td width="10">&nbsp;</td>
    <td width="68"> <font size="1">39 registered investment companies consisting
      of 68&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="59"> <font size="1">None </font></td>
  </tr>
  <tr valign="top">
    <td width="90">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="54">&nbsp;</td>
    <td width="6">&nbsp;</td>
    <td width="56">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="67">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="153">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="68">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="59">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="90"> <font size="1">Andr&eacute; F. Perold (50) </font></td>
    <td width="8">&nbsp;</td>
    <td width="54"> <font size="1">Nominee </font></td>
    <td width="6">&nbsp;</td>
    <td width="56"> <font size="1">Nominee </font></td>
    <td width="7">&nbsp;</td>
    <td width="67"> <font size="1">Nominee </font></td>
    <td width="10">&nbsp;</td>
    <td width="153"> <font size="1">Harvard Business School: George Gund Professor
      of Finance and Banking since 2000; Senior Associate Dean, Director of Faculty
      Recruiting since 2001; Finance Area Chair from 1996 to 2001; Sylvan C. Coleman
      Professor of Financial Management from 1993 to 2000; Director, Genbel Securities
      Limited and Gensec Bank since 1999; Director, Stockback, Inc. since 2000;
      Director, Sanlam Limited since 2001; Trustee, Commonfund from 1989 to 2001;
      Director, Sanlam Investment Management from 1999 to 2001; Director, Bulldogresearch.com
      from 2000 to 2001; Director, Quantec Limited from 1991 to 1999. </font></td>
    <td width="10">&nbsp;</td>
    <td width="68"> <font size="1">39 registered investment companies consisting
      of 68&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="59"> <font size="1">None </font></td>
  </tr>
  <tr valign="top">
    <td width="90">&nbsp;</td>
    <td width="8">&nbsp;</td>
    <td width="54">&nbsp;</td>
    <td width="6">&nbsp;</td>
    <td width="56">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="67">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="153">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="68">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="59">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="90"> <font size="1">Roberta Cooper Ramo (59) </font></td>
    <td width="8">&nbsp;</td>
    <td width="54"> <font size="1">Nominee </font></td>
    <td width="6">&nbsp;</td>
    <td width="56"> <font size="1">Nominee </font></td>
    <td width="7">&nbsp;</td>
    <td width="67"> <font size="1">Nominee </font></td>
    <td width="10">&nbsp;</td>
    <td width="153"> <font size="1">Shareholder, Modrall, Sperling, Roehl, Harris
      &amp; Sisk, P.A. since 1993; President, American Bar Association from 1995
      to 1996 and Member of the Board of Governors thereof from 1994 to 1997;
      Partner, Poole, Kelly &amp; Ramo, Attorneys at Law, P.C. from 1977 to 1993;
      Director of ECMC Group (service provider to students, schools and lenders)
      since 2001; Director, United New Mexico Bank (now Wells Fargo) from 1983
      to 1988; Director, First National Bank of New Mexico (now First Security)
      from 1975 to 1976. </font></td>
    <td width="10">&nbsp;</td>
    <td width="68"> <font size="1">39 registered investment companies consisting
      of 68&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="59"> <font size="1">None </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="right">
    <td><font size="1"><i>(footnotes on page 6)</i></font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 5</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<table   cellspacing=0 cellpadding=00 width=600>
  <tr valign="bottom">
    <td rowspan="2" width="109">&nbsp;</td>
    <td rowspan=2 align="center" colspan="6"> <b><font size="1">Position(s) Held
      with Each Fund <br>
      and Length of Time Served </font></b>
      <hr noshade size="1">
    </td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="148">&nbsp;</td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="70"><b></b></td>
    <td rowspan="2" align="center" width="10">&nbsp;</td>
    <td rowspan="2" align="center" width="60">&nbsp;</td>
  </tr>
  <tr><td></td> </tr>
  <tr valign="bottom">
    <td width="109"> <b><font size="1">Name, Address* and Age <br>
      of Nominee** </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td align="center" width="6">&nbsp;</td>
    <td align="center" width="47"> <b><font size="1">Corporate High <br>
      Yield&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="7">&nbsp;</td>
    <td align="center" width="51"> <b><font size="1">Corporate <br>
      High<br>
      Yield III&#134; </font></b>
      <hr noshade size="1">
      <b><font size="1"> </font></b></td>
    <td align="center" width="7">&nbsp;</td>
    <td align="center" width="63"> <b><font size="1">MuniAssets&#134;&#134; </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="148"> <b><font size="1">Principal Occupation(s)
      <br>
      During Past Five Years </font></b>
      <hr noshade size="1" width="70%">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="70"> <b><font size="1">Number of FAM/MLIM- <br>
      Advised Funds<br>
      and Portfolios<br>
      Overseen </font></b>
      <hr noshade size="1">
    </td>
    <td align="center" width="10">&nbsp;</td>
    <td align="center" width="60"> <b><font size="1">Public <br>
      Directorships </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign="top">
    <td width="109"> <font size="1">Robert S. Salomon, Jr. (65) </font></td>
    <td width="6">&nbsp;</td>
    <td width="47"> <font size="1">Director since 1996 </font></td>
    <td width="7">&nbsp;</td>
    <td width="51"> <font size="1">Director since 1998 </font></td>
    <td width="7">&nbsp;</td>
    <td width="63"> <font size="1">Director since 1996 </font></td>
    <td width="10">&nbsp;</td>
    <td width="148"> <font size="1">Principal of STI Management (investment adviser)
      since 1994; Chairman and CEO of Salomon Brothers Asset Management Inc. from
      1992 to 1995; Chairman of Salomon Brothers Equity Mutual Funds from 1992
      to 1995; regular columnist with Forbes Magazine since 1992; Director of
      Stock Research and U.S. Equity Strategist at Salomon Brothers Inc. from
      1975 to 1991; Trustee, Commonfund from 1980 to 2001. </font></td>
    <td width="10">&nbsp;</td>
    <td width="70"> <font size="1">42 registered investment companies consisting
      of 71&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="60"> <font size="1">None </font></td>
  </tr>
  <tr valign="top">
    <td width="109">&nbsp;</td>
    <td width="6">&nbsp;</td>
    <td width="47">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="51">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="63">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="148">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="70">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="60">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="109"> <font size="1">Melvin R. Seiden (71) </font></td>
    <td width="6">&nbsp;</td>
    <td width="47"> <font size="1">Director since 1993 </font></td>
    <td width="7">&nbsp;</td>
    <td width="51"> <font size="1">Director since 1998 </font></td>
    <td width="7">&nbsp;</td>
    <td width="63"> <font size="1">Director since 1993 </font></td>
    <td width="10">&nbsp;</td>
    <td width="148"> <font size="1">Director of Silbanc Properties, Ltd. (real
      estate, investment and consulting) since 1987; Chairman and President of
      Seiden &amp; de Cuevas, Inc. (private investment firm) from 1964 to 1987.
      </font></td>
    <td width="10">&nbsp;</td>
    <td width="70"> <font size="1">42 registered investment companies consisting
      of 71&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="60"> <font size="1">None </font></td>
  </tr>
  <tr valign="top">
    <td width="109">&nbsp;</td>
    <td width="6">&nbsp;</td>
    <td width="47">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="51">&nbsp;</td>
    <td width="7">&nbsp;</td>
    <td width="63">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="148">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="70">&nbsp;</td>
    <td width="10">&nbsp;</td>
    <td width="60">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="109"> <font size="1">Stephen B. Swensrud (69) </font></td>
    <td width="6">&nbsp;</td>
    <td width="47"> <font size="1">Director since 1993 </font></td>
    <td width="7">&nbsp;</td>
    <td width="51"> <font size="1">Director since 1998 </font></td>
    <td width="7">&nbsp;</td>
    <td width="63"> <font size="1">Director since 1993 </font></td>
    <td width="10">&nbsp;</td>
    <td width="148"> <font size="1">Chairman of Fernwood Advisors (investment
      adviser) since 1996; Principal of Fernwood Associates (financial consultant)
      since 1975; Chairman of RPP Corporation (manufacturing) since 1978; Director,
      International Mobile Communications, Inc. (telecommunications) since 1998.
      </font></td>
    <td width="10">&nbsp;</td>
    <td width="70"> <font size="1">42 registered investment companies consisting
      of 71&nbsp;portfolios </font></td>
    <td width="10">&nbsp;</td>
    <td width="60"> <font size="1">None </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">&nbsp;* </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">The
address of each Director nominee is P.O. Box 9011, Princeton, New Jersey 08543-9011. </font></td></tr></table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Each
nominee and each Director is a director, trustee or member of an advisory board of
certain other investment companies for which FAM or its affiliate, MLIM, acts as an
investment adviser and is a member of the Audit Committee of each Fund for which he or
she currently serves as a director and will be a member of each Fund&#146;s Audit Committee if
elected a Director.</font></td></tr></table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">&nbsp;&#134; </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Each
Director of Corporate High Yield and of Corporate High Yield III serves until the next
annual election of Directors of the applicable Fund and until his or her successor is
elected and qualified, or until his or her death or resignation, or removal as provided
in that Fund&#146;s by-laws or charter or by statute, or until December 31 of the year in
which he or she turns 72.</font></td></tr></table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">&#134;&#134; </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Each
Director of MuniAssets serves until the expiration of the term of his or her designated class
and until his or her successor is elected and qualified, or until his or her death or
resignation, or removal as provided in the Fund&#146;s by-laws or charter or by statute, or
until December 31 of the year in which he or she turns 72.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Audit Committee Report</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund has a standing Audit Committee (each, a &#147;Committee&#148;), which
consists of the Directors who are not &#147;interested persons&#148; of the Fund within the meaning
of the Investment Company Act and who are &#147;independent&#148; as defined in the listing
standards of the New York Stock Exchange. Currently, Messrs. Grills, Salomon, Seiden and
Swensrud are members of each Committee. The principal </font></td></tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 6</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2>responsibilities of each Committee are to: (i)
recommend to the Board of Directors the selection, retention or termination of the Fund&#146;s
independent auditors; (ii) review with the independent auditors the scope, performance
and anticipated cost of their audit; (iii) discuss with the independent auditors certain
matters relating to the Fund&#146;s financial statements, including any adjustment to such
financial statements recommended by such independent auditors, or any other results of
any audit; (iv) review on a periodic basis a formal written statement from the
independent auditors with respect to their independence, discuss with the independent
auditors any relationships or services disclosed in the statement that may impact the
objectivity and independence of each Fund&#146;s independent auditors and recommend that the
Board of Directors take appropriate action in response to this statement to satisfy
itself of the independent auditors&#146; independence; and (v) consider the comments of the
independent auditors and management&#146;s responses thereto with respect to the quality and
adequacy of each Fund&#146;s accounting and financial reporting policies and practices and
internal controls.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund has
adopted an Audit Committee Charter (the &#147;Charter&#148;), which is attached as Exhibit A to
this Combined Proxy Statement. Each Fund&#146;s Committee also has (a) received written
disclosures and the letter required by Independence Standards Board Standard No. 1 from
Deloitte &amp;Touche LLP (&#147;D&amp;T&#148;), independent auditors for each Fund, and (b)
discussed with D&amp;T certain matters required to be discussed by Statements on Auditing
Standards No. 61. Each Fund&#146;s Committee has considered whether the provision of non-audit
services by the Fund&#146;s independent auditors is compatible with maintaining the
independence of those auditors.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At its meeting
held on July 10-11, 2002, each Fund&#146;s Committee reviewed and discussed the audit of each
Fund&#146;s financial statements with Fund management and D&amp;T. Had any material concerns
arisen during the course of the audit and the preparation of the audited financial
statements mailed to stockholders and included in each Fund&#146;s Annual Report, the
Committee would have been notified by Fund management or D&amp;T. The Committees received
no such notifications. At the same meeting, each Committee recommended to the Board of
Directors that each Fund&#146;s audited financial statements for its fiscal year ended May 31,
2002 be included in the Fund&#146;s Annual Report to Stockholders.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the
above, each Fund&#146;s Committee also reviews and nominates candidates to serve as
non-interested Directors. The Committees generally will not consider nominees recommended
by stockholders of a Fund. The non-interested Directors have retained independent legal
counsel to assist them in connection with these duties.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Committee and Board of Directors Meetings</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During each Fund&#146;s
fiscal year ended May 31, 2002, the Board of Directors held four meetings and the Committee held four meetings. Each of the Directors then in office attended at least
75% of the aggregate of the total number of meetings of the Board of Directors held
during the fiscal year and, if a member, the total number of meetings of the Committee
held during such period.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2><B>Compliance with Section 16(a) of the
Securities Exchange Act of 1934</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of
the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), requires the
officers and Directors of each Fund and persons who own more than ten percent of a
registered class of the Fund&#146;s equity securities to file reports of ownership and changes
in ownership on Forms 3, 4 and 5 with the</font></td></tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 7</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2>Securities and Exchange Commission (&#147;SEC&#148;) and
the New York Stock Exchange (&#147;NYSE&#148;). Officers, Directors and greater than ten percent
stockholders of each Fund are required by SEC regulations to furnish the Fund with copies
of all Forms 3, 4 and 5 they file.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based solely on
each Fund&#146;s review of the copies of such forms, and amendments thereto, furnished to it
during or with respect to its most recent fiscal year, and written representations from
certain reporting persons that they were not required to file Form 5 with respect to the
most recent fiscal year, each Fund believes that all of its officers, Directors, greater
than ten percent beneficial owners and other persons subject to Section 16 of the
Exchange Act due to the requirements of Section 30 of the Investment Company Act (i.e.,
any advisory board member, investment adviser or affiliated person of the Fund&#146;s
investment adviser) have complied with all filing requirements applicable to them with
respect to transactions during the Fund&#146;s most recent fiscal year.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Compensation of Directors</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAM, the
investment adviser of each Fund, pays all compensation to all officers of and all
Directors of each Fund who are affiliated with Merrill Lynch &amp; Co., Inc. (&#147;ML &amp; Co.&#148;)
or its subsidiaries. Each Fund pays each Director who is not affiliated with FAM (each a
&#147;non-interested Director&#148;) an annual fee for each in-person Board of Directors meeting
attended, together with such Director&#146;s actual out-of-pocket expenses relating to
attendance at such meetings. Each Fund also pays each member of its Committee, which
consists of all the non-interested Directors, an annual fee plus a fee for each in-person
meeting attended, together with such Director&#146;s out-of-pocket expenses relating to
attendance at such meetings. The table below sets forth certain information with respect to fees
and expenses paid by each Fund to non-interested Directors: </font></td>
  </tr></table>

<table   cellspacing=0 cellpadding=0 width=600>
  <tr align="center" valign="bottom">
    <td width="144"><font size="1"></font></td>
    <td colspan="3">&nbsp; </td>
    <td colspan="3">&nbsp; </td>
    <td width="64">&nbsp; </td>
  </tr>
</table>
<p>&nbsp;</p>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr align="center" valign="bottom">
    <td align="left" height="60">&nbsp;</td>
    <td height="60">&nbsp;</td>
    <td colspan="3" height="60"><font size="1"><b>Board </b> </font>
      <hr noshade size="1" width="95%">
    </td>
    <td height="60">&nbsp;</td>
    <td colspan="3" height="60"><font size="1"><b>Audit Committee </b> </font>
      <hr noshade size="1" width="95%">
    </td>
    <td height="60">&nbsp;</td>
    <td rowspan="2"> <font size="1"><b>Aggregate <br>
      Fees and <br>
      Expenses <br>
      Paid During <br>
      the Fiscal <br>
      Year Ended <br>
      May 31, 2002 </b> </font>
      <hr noshade size="1" width="90%">
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="left"> <font size="1"><b>Fund </b> </font>
      <hr noshade size="1" width="20" align="left">
    </td>
    <td>&nbsp;&nbsp; </td>
    <td> <font size="1"><b>Annual <br>
      Fee </b> </font>
      <hr noshade size="1" width="90%">
    </td>
    <td>&nbsp;&nbsp;</td>
    <td> <font size="1"><b>Per Meeting<br>
      Fee* </b> </font>
      <hr noshade size="1" width="90%">
    </td>
    <td>&nbsp;&nbsp; </td>
    <td> <font size="1"><b>Annual <br>
      Fee </b> </font>
      <hr noshade size="1" width="90%">
    </td>
    <td>&nbsp;&nbsp;</td>
    <td> <font size="1"><b>Per Meeting<br>
      Fee* </b> </font>
      <hr noshade size="1" width="90%">
    </td>
    <td>&nbsp;&nbsp;</td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="left"> <font size=2>Corporate High Yield </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,525 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$400 </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,525 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$400 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$46,224 </font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="left"> <font size=2>Corporate High Yield III </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,950 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$450 </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,950 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$450 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$54,683 </font></td>
  </tr>
  <tr align="center" valign="bottom">
    <td align="left"> <font size=2>MuniAssets </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,300 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$300 </font></td>
    <td>&nbsp; </td>
    <td> <font size=2>$1,300 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$300 </font></td>
    <td>&nbsp;</td>
    <td> <font size=2>$36,676 </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3% align=right valign=top><font size="1">* </font></td>
    <td width=2%><font size="1"></font></td>
    <td width=95%><font size="1">The
fee is payable for each meeting attended in person. A fee is not paid for telephonic
meetings.</font></td>
  </tr>
</table>


<br>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 8</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>



<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth
      for the fiscal year ended May 31, 2002 compensation paid by each Fund to
      its non-interested Directors and, for the calendar year ended December 31,
      2001, the aggregate compensation paid by FAM/MLIM-Advised Funds to each
      non-interested Director.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2><B>Corporate High Yield: Aggregate</B></font></td></tr></table>


<br>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="138"> <b><font size="1">Name of Director </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td width="69" align="center"> <b><font size="1">Position<br>
      with Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="84" align="center"> <b><font size="1">Compensation<br>
      from Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="101" align="center"> <b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of<br>
      Fund Expense </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="92" align="center"> <b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon<br>
      Retirement </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="114" align="center"> <b><font size="1">Aggregate <br>
      Compensation<br>
      from Fund and <br>
      Other FAM/MLIM- <br>
      Advised Funds </font></b>
      <hr noshade size="1" width="75%">
    </td>
  </tr>
  <tr valign="bottom">
    <td width="139"> <font size=2>Joe Grills* </font></td>
    <td width="70" align="center"> <font size=2>Director </font></td>
    <td width="81" align="center"> <font size=2>$9,900 </font></td>
    <td width="102" align="center"> <font size=2>None </font></td>
    <td width="89" align="center"> <font size=2>None </font></td>
    <td width="117" align="center"> <font size=2>$259,500 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="139"> <font size=2>Robert S. Salomon, Jr. </font></td>
    <td width="70" align="center"> <font size=2>Director </font></td>
    <td width="81" align="center"> <font size=2>$9,900 </font></td>
    <td width="102" align="center"> <font size=2>None </font></td>
    <td width="89" align="center"> <font size=2>None </font></td>
    <td width="117" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="139"> <font size=2>Melvin R. Seiden </font></td>
    <td width="70" align="center"> <font size=2>Director </font></td>
    <td width="81" align="center"> <font size=2>$9,900 </font></td>
    <td width="102" align="center"> <font size=2>None </font></td>
    <td width="89" align="center"> <font size=2>None </font></td>
    <td width="117" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="139"> <font size=2>Stephen B. Swensrud </font></td>
    <td width="70" align="center"> <font size=2>Director </font></td>
    <td width="81" align="center"> <font size=2>$9,900 </font></td>
    <td width="102" align="center"> <font size=2>None </font></td>
    <td width="89" align="center"> <font size=2>None </font></td>
    <td width="117" align="center"> <font size=2>$406,083 </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600>
  <tr align="left">
    <td width=100% valign=top colspan="3"><font size="1">*&nbsp;&nbsp;</font><font size="1"></font><font size="1">Chairman
      of the Fund&#146;s Committee.</font></td>
  </tr>
</table>

<p><table width=600><tr><td><font size=2><B>Corporate High Yield III:</B></font></td></tr></table>


<br>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="138"> <b><font size="1">Name of Director </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td width="69" align="center"> <b><font size="1">Position<br>
      with Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="84" align="center"> <b><font size="1">Compensation<br>
      from Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="101" align="center"> <b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of<br>
      Fund Expense </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="92" align="center"> <b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon<br>
      Retirement </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="114" align="center"> <b><font size="1">Aggregate <br>
      Compensation<br>
      from Fund and <br>
      Other FAM/MLIM- <br>
      Advised Funds </font></b>
      <hr noshade size="1" width="75%">
    </td>
  </tr>
  <tr valign="bottom">
    <td width="140"> <font size=2>Joe Grills* </font></td>
    <td width="68" align="center"> <font size=2>Director </font></td>
    <td width="83" align="center"> <font size=2>$11,700 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="90" align="center"> <font size=2>None </font></td>
    <td width="116" align="center"> <font size=2>$259,500 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="140"> <font size=2>Robert S. Salomon, Jr. </font></td>
    <td width="68" align="center"> <font size=2>Director </font></td>
    <td width="83" align="center"> <font size=2>$11,700 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="90" align="center"> <font size=2>None </font></td>
    <td width="116" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="140"> <font size=2>Melvin R. Seiden </font></td>
    <td width="68" align="center"> <font size=2>Director </font></td>
    <td width="83" align="center"> <font size=2>$11,700 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="90" align="center"> <font size=2>None </font></td>
    <td width="116" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="140"> <font size=2>Stephen B. Swensrud </font></td>
    <td width="68" align="center"> <font size=2>Director </font></td>
    <td width="83" align="center"> <font size=2>$11,700 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="90" align="center"> <font size=2>None </font></td>
    <td width="116" align="center"> <font size=2>$406,083 </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600>
  <tr align="left">
    <td width=100% valign=top colspan="3"><font size="1">*&nbsp;&nbsp;</font><font size="1"></font><font size="1">Chairman
      of the Fund&#146;s Committee.</font></td>
  </tr>
</table>

<p><table width=600><tr>
    <td><font size=2><B>MuniAssets:</B></font></td>
  </tr></table>


<br>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="138"> <b><font size="1">Name of Director </font></b>
      <hr noshade size="1" width="90%" align="left">
    </td>
    <td width="69" align="center"> <b><font size="1">Position<br>
      with Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="84" align="center"> <b><font size="1">Compensation<br>
      from Fund </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="101" align="center"> <b><font size="1">Pension or <br>
      Retirement Benefits <br>
      Accrued as Part of<br>
      Fund Expense </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="92" align="center"> <b><font size="1">Estimated <br>
      Annual <br>
      Benefits upon<br>
      Retirement </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="114" align="center"> <b><font size="1">Aggregate <br>
      Compensation<br>
      from Fund and <br>
      Other FAM/MLIM- <br>
      Advised Funds </font></b>
      <hr noshade size="1" width="75%">
    </td>
  </tr>
  <tr valign="bottom">
    <td width="138"> <font size=2>Joe Grills* </font></td>
    <td width="69" align="center"> <font size=2>Director </font></td>
    <td width="84" align="center"> <font size=2>$7,800 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="92" align="center"> <font size=2>None </font></td>
    <td width="114" align="center"> <font size=2>$259,500 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="138"> <font size=2>Robert S. Salomon, Jr. </font></td>
    <td width="69" align="center"> <font size=2>Director </font></td>
    <td width="84" align="center"> <font size=2>$7,800 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="92" align="center"> <font size=2>None </font></td>
    <td width="114" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="138"> <font size=2>Melvin R. Seiden </font></td>
    <td width="69" align="center"> <font size=2>Director </font></td>
    <td width="84" align="center"> <font size=2>$7,800 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="92" align="center"> <font size=2>None </font></td>
    <td width="114" align="center"> <font size=2>$222,000 </font></td>
  </tr>
  <tr valign="bottom">
    <td width="138"> <font size=2>Stephen B. Swensrud </font></td>
    <td width="69" align="center"> <font size=2>Director </font></td>
    <td width="84" align="center"> <font size=2>$7,800 </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="92" align="center"> <font size=2>None </font></td>
    <td width="114" align="center"> <font size=2>$406,083 </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600>
  <tr align="left">
    <td width=100% valign=top colspan="3"><font size="1">*&nbsp;&nbsp;</font><font size="1">Chairman
      of the Fund&#146;s Committee.</font></td>
  </tr>
</table>


<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 9</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>




<p><table width=600><tr><td><font size=2><B>Officers of the Funds</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund&#146;s Board
of Directors has elected several officers. The following sets forth information
concerning each of these officers:</font></td></tr></table>


<br>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="120"></td>
    <td colspan="6" align="center"> <b><font size="1">Position(s) Held with Each
      Fund <br>
      and Length of Time Served** </font></b>
      <hr noshade size="1">
    </td>
    <td width="10" align="center"></td>
    <td width="193" align="center"></td>
    <td width="11" align="center"></td>
    <td width="71" align="center"></td>
  </tr>
  <tr valign="bottom">
    <td width="120"> <b><font size="1">Name, Address* <br>
      and Age of Officer </font></b>
      <hr noshade size="1" align="left" width="70%">
    </td>
    <td width="7" align="center">&nbsp;</td>
    <td width="54" align="center"> <b><font size="1">Corporate High <br>
      Yield </font></b>
      <hr noshade size="1" width="90%">
    </td>
    <td width="8" align="center">&nbsp;</td>
    <td width="55" align="center"> <b><font size="1">Corporate <br>
      High <br>
      Yield III </font></b>
      <hr noshade size="1" width="90%">
    </td>
    <td width="8" align="center">&nbsp;</td>
    <td width="61" align="center"> <b><font size="1">MuniAssets </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="10" align="center">&nbsp;</td>
    <td width="193" align="center"> <b><font size="1">Principal Occupation <br>
      During Past Five Years </font></b>
      <hr noshade size="1" width="50%">
    </td>
    <td width="11" align="center">&nbsp;</td>
    <td width="71" align="center"> <b><font size="1">Number of <br>
      FAM/MLIM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Terry K. Glenn (61) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">President since 1999&#134; </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">President since 1999&#134; </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61"> <font size="1">President since 1999&#134; </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193"> <font size="1">Chairman (Americas Region) since
      2000 and Executive Vice President since 1983 of FAM and MLIM; President
      of Merrill Lynch Mutual Funds since 1999; President of FAMD since 1986 and
      Director thereof since 1991; Executive Vice President and Director of Princeton
      Services since 1993; President of Princeton Administrators since 1988; Director
      of FDS since 1985. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">116 registered investment companies
      consisting of 184&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Kenneth A. Jacob (51) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61"> <font size="1">Senior Vice President since 1993
      </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193"> <font size="1">First Vice President of MLIM
      since 1997; Vice President of MLIM from 1984 to 1997; Vice President of
      FAM since 1984. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">38 registered investment companies
      consisting of 61&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Elizabeth M. Phillips (52) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">Vice President since 1993 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">Vice President since 1998 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61"> <font size="1">N/A </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193"> <font size="1">Director of MLIM since 2000;
      Vice President of MLIM from 1990 to 2000. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">5 registered investment companies
      consisting of 5&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Donald C. Burke (42) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">Vice President since 1993 and
      Treasurer since 1999 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">Vice President since 1998 and
      Treasurer since 1999 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61"> <font size="1">Vice President since 1993 and
      Treasurer since 1999 </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193"> <font size="1">First Vice President of FAM and
      MLIM since 1997 and the Treasurer thereof since 1999; Senior Vice President
      and Treasurer of Princeton Services since 1999; Vice President of FAMD since
      1999; Vice President of FAM and MLIM from 1990 to 1997; Director of Taxation
      of MLIM since 1990. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">117 registered investment companies
      consisting of 185&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Theodore R. Jaeckel, Jr. (42)
      </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="61"> <font size="1">Vice President since 1997 </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="193"> <font size="1">Director (Tax-Exempt Fund Management)
      of FAM and MLIM since 1997 and Vice President thereof from 1991 to 1997.
      </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">6 registered investment companies
      consisting of 19&nbsp;portfolios </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="right">
    <td><font size="1"><i>(footnotes on following page)</i></font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 10</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<table   cellspacing=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="120"></td>
    <td colspan="6" align="center"> <b><font size="1">Position(s) Held with Each
      Fund <br>
      and Length of Time Served** </font></b>
      <hr noshade size="1">
    </td>
    <td width="10" align="center"></td>
    <td width="188" align="center"></td>
    <td width="11" align="center"></td>
    <td width="71" align="center"></td>
  </tr>
  <tr valign="bottom">
    <td width="120"> <b><font size="1">Name, Address* <br>
      and Age of Officer </font></b>
      <hr noshade size="1" align="left" width="70%">
    </td>
    <td width="7" align="center">&nbsp;</td>
    <td width="54" align="center"> <b><font size="1">Corporate High <br>
      Yield </font></b>
      <hr noshade size="1" width="90%">
    </td>
    <td width="8" align="center">&nbsp;</td>
    <td width="55" align="center"> <b><font size="1">Corporate <br>
      High <br>
      Yield III </font></b>
      <hr noshade size="1" width="90%">
    </td>
    <td width="8" align="center">&nbsp;</td>
    <td width="66" align="center"> <b><font size="1">MuniAssets </font></b>
      <hr noshade size="1" width="80%">
    </td>
    <td width="10" align="center">&nbsp;</td>
    <td width="188" align="center"> <b><font size="1">Principal Occupation <br>
      During Past Five Years </font></b>
      <hr noshade size="1" width="50%">
    </td>
    <td width="11" align="center">&nbsp;</td>
    <td width="71" align="center"> <b><font size="1">Number of <br>
      FAM/MLIM- <br>
      Advised Funds <br>
      and Portfolios <br>
      Overseen </font></b>
      <hr noshade size="1">
    </td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">John M. Loffredo (38) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66"> <font size="1">Vice President <br>
      since 1998 </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188"> <font size="1">Managing Director of MLIM since
      2000; First Vice President of MLIM from 1997 to 2000; Vice President of
      MLIM from 1991 to 1997; Portfolio Manager of FAM and MLIM since 1997. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">38 registered investment companies
      consisting of 61&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">B. Daniel Evans (56) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">Vice President <br>
      since 2002 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">Vice President <br>
      since 2002 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66"> <font size="1">N/A </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188"> <font size="1">Director of MLIM since 2000;
      Vice President of MLIM from 1995 to 2000. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">4 registered investment companies
      consisting of 4&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">Stephen Benham (43) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">N/A </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66"> <font size="1">Secretary since<br>
      2002 </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188"> <font size="1">Vice President of MLIM since
      2000; Associate, Kirkpatrick &amp; Lockhart LLP from 1997 to 2000. </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">17 registered investment companies
      consisting of 46&nbsp;portfolios </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="120">&nbsp;</td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55">&nbsp;</td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66">&nbsp;</td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188">&nbsp;</td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71">&nbsp;</td>
  </tr>
  <tr>
    <td valign="TOP" width="120"> <font size="1">David W. Clayton (35) </font></td>
    <td valign="TOP" width="7">&nbsp;</td>
    <td valign="TOP" width="54"> <font size="1">Secretary since <br>
      2002 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="55"> <font size="1">Secretary since <br>
      2002 </font></td>
    <td valign="TOP" width="8">&nbsp;</td>
    <td valign="TOP" width="66"> <font size="1">N/A </font></td>
    <td valign="TOP" width="10">&nbsp;</td>
    <td valign="TOP" width="188"> <font size="1">Vice President of MLIM since
      2000; attorney in private practice from 1995 to&nbsp;2000 </font></td>
    <td valign="TOP" width="11">&nbsp;</td>
    <td valign="TOP" width="71"> <font size="1">11 registered investment companies
      consisting of 9&nbsp;portfolios </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td>
      <hr size=1 noshade align=left  width=75>
    </td>
  </tr>
</table>
<table width=600><tr><td width=3% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">The
address of each officer listed above is P.O. Box 9011, Princeton, New Jersey 08543-9011. </font></td></tr></table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">** </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Elected
by and serves at the pleasure of the Board of Directors of each Fund.</font></td></tr></table>

<table width=600><tr><td width=3% align=right valign=top><font size="1">+ </font></td><td width=2%><font size="1"></font></td><td width=95%><font size="1">Mr.
Glenn was elected President of each Fund in 1999. He served as Executive Vice President
of Corporate High Yield from 1993 to 1999, of Corporate High Yield III from 1998 to 1999,
and of MuniAssets from 1997 to 1999. Mr. Glenn is also a Director of each Fund.</font></td></tr></table>

<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 11</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2><B>Stock Ownership</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to the stock ownership of each nominee and each Director in each Fund and in all
registered FAM/MLIM-Advised Funds overseen by such nominee or Director is set forth below:</font></td></tr></table>


<br>
<table cellspacing=0 border=0 cellpadding=0 width=600>
  <tr align="center" valign="bottom">
    <td width="20"><b></b></td>
    <td width="145"><b></b></td>
    <td colspan="3"> <b><font size="1">Aggregate Dollar Range of Equity in the
      Fund <BR>
      and Number of Shares Owned </font></b><b></b>
      <hr noshade size="1">
      <b></b></td>
    <td colspan="2"><b></b></td>
  </tr>
  <tr align="center" valign="bottom">
    <td width="20"><b></b></td>
    <td width="145"><b></b></td>
    <td width="97"> <b><font size="1">Corporate <br>
      High Yield </font></b>
      <hr noshade size="1" width="60%">
    </td>
    <td width="101"> <b><font size="1">Corporate <br>
      High Yield III </font></b>
      <hr noshade size="1" width="60%">
    </td>
    <td width="91"> <b><font size="1">MuniAssets </font></b>
      <hr noshade size="1" width="60%">
    </td>
    <td colspan="2"> <b><font size="1">Aggregate Dollar Range of <br>
      Securities in All FAM/MLIM-<br>
      Advised Funds Overseen by <br>
      Each Director or Nominee in the <br>
      Merrill Lynch Family of Funds </font></b>
      <hr noshade size="1" width="95%">
    </td>
  </tr>
  <tr valign="bottom">
    <td colspan="3"> <font size=2><i>Interested Director: </i></font></td>
    <td width="101" align="center">&nbsp;</td>
    <td width="91" align="center">&nbsp;</td>
    <td width="120">&nbsp;</td>
    <td width="26">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Terry K. Glenn </font></td>
    <td width="97" align="center"> <font size=2>$1-$10,000 </font></td>
    <td width="101" align="center"> <font size=2>None</font></td>
    <td width="91" align="center"> <font size=2>over $100,000</font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>over $100,000
      </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145">&nbsp;</td>
    <td width="97" align="center"><font size="2">1,148 shares</font></td>
    <td width="101" align="center"><font size="2"></font></td>
    <td width="91" align="center"><font size="2">8,610 shares</font></td>
    <td width="120" align="right" valign="bottom">&nbsp;</td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td colspan="3"> <font size=2><i>Non-Interested Directors and Nominees: </i></font></td>
    <td width="101" align="center">&nbsp;</td>
    <td width="91" align="center">&nbsp;</td>
    <td width="120" align="right" valign="bottom">&nbsp;</td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>James H. Bodurtha </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>over $100,000
      </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Joe Grills </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>over $100,000
      </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Herbert I. London </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>None </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Andr&eacute; F. Perold </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>None </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Roberta Cooper Ramo </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>$50,000 - $100,000
      </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Melvin R. Seiden </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>$1 - $10,000 </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Robert S. Salomon, Jr. </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>None </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20">&nbsp;</td>
    <td width="145"> <font size=2>Stephen B. Swensrud </font></td>
    <td width="97" align="center"> <font size=2>None </font></td>
    <td width="101" align="center"> <font size=2>None </font></td>
    <td width="91" align="center"> <font size=2>None </font></td>
    <td width="120" align="right" valign="bottom"> <font size=2>None </font></td>
    <td width="26" align="right">&nbsp;</td>
  </tr>
</table>
<p>
<table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Record
Date, the Directors and officers of each Fund as a group owned an aggregate of less than
1% of the Fund&#146;s outstanding shares. As of the Record Date, no non-interested Director or
nominee or his or her respective immediate family members, owned beneficially or of
record any securities of ML &amp; Co. At such date, Mr. Glenn, President and a Director of
each Fund, and the other officers of each Fund owned an aggregate of less than 1% of the
outstanding shares of common stock of ML &amp; Co.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of
Directors of each Fund recommends that the stockholders vote &#147;FOR&#148; each of the nominees
for Director.</B></FONT></td></tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2><B><font size="3">ADDITIONAL INFORMATION</font></B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2><B>Expenses and Methods of Proxy Solicitation;
Vote Required</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses of
preparation, printing and mailing of the enclosed forms of proxy and accompanying Notice
and Combined Proxy Statement will be borne by the Funds in proportion to their relative
net assets. The Funds will reimburse banks, brokers and others for their reasonable
expenses in forwarding proxy solicitation material to the beneficial owners of the shares
of the Funds.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each of
Corporate High Yield and MuniAssets, a majority of the Fund&#146;s common stock entitled to
vote at the Meeting, present in person or by proxy constitutes a quorum; for Corporate
High Yield III, one-third of the Fund&#146;s common stock entitled to vote at the Meeting,
present in person or by proxy, constitutes a quorum. In order to obtain the necessary
quorum at each Meeting, supplementary solicitation may be made by </font></td></tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 12</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2>mail, telephone, telegraph or personal interview
by officers of each Fund. Each Fund has retained Georgeson Shareholder, 17 State Street,
New York, New York 10004, to assist in the solicitation of proxies at a cost of
approximately $3,500 for each Fund, plus out-of-pocket expenses estimated to be $500 for
each Fund.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares represented by properly
      executed proxies, unless such proxies have previously been revoked, will
      be voted at each Meeting in accordance with the directions on the proxies;
      if no direction is indicated, the shares will be voted &#147;FOR&#148; the nominees.
      In the case of Corporate High Yield and Corporate High Yield III, approval
      with respect to the election of Directors (Item 1) will require the affirmative
      vote of a plurality of the votes cast by each Fund&#146;s stockholders, in person
      or by proxy, at a meeting at which a quorum is present and duly constituted.
      A &#147;plurality of the votes&#148; means the candidate must receive more votes than
      any other candidate for the same position, but not necessarily a majority
      of the votes cast. In the case of MuniAssets, assuming a quorum is present
      at the Meeting, the election of Directors will require the affirmative vote
      of a majority of the total votes cast by the stockholders represented at
      the Meeting and entitled to vote. <br>
      <br>
      <b>Broker Non-Votes and Abstentions</b></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer
firms, including Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;),
holding shares of each Fund in &#147;street name&#148; for the benefit of their customers and
clients, will request the instructions of such customers and clients on how to vote their
shares on Item 1 before the Meeting. The Funds understand that, under the rules of the
New York Stock Exchange, such broker-dealer firms may, without instructions from their
customers and clients, grant authority to the proxies designated to vote on the election
of Directors (Item 1) if no instructions have been received prior to the date specified
in the broker-dealer firm&#146;s request for voting instructions. The Funds will include
shares held of record by broker-dealers as to which such authority has been granted in
its tabulation of the total number of shares present for purposes of determining whether
the necessary quorum of stockholders of each Fund exists. Proxies that are returned to a
Fund but that are marked &#147;abstain&#148; or on which a broker-dealer has declined to vote on
Item 1 (&#147;broker non-votes&#148;) will be counted as present for the purposes of determining a
quorum. MLPF&amp;S has advised each Fund that if it votes shares held in its name for
which no instructions are received, except as limited by agreement or applicable law, it
will do so in the same proportion as the votes received from beneficial owners of those
shares for which instructions have been received, whether or not held in nominee name.
Abstentions and broker non-votes will not be counted as votes cast. Therefore,
abstentions and broker non-votes will not have an effect on the vote on Item 1 for any
Fund.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Other Matters</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management knows
of no other matters to be presented at the Meetings. However, if other matters are
presented for a vote at the meeting or any adjournments thereof, the proxy holders will
vote the Common Stock represented by properly executed proxies according to their
judgment on those matters.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Independent Auditors&#146; Fees</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
table sets forth the aggregate fees paid to D&amp;T for each Fund&#146;s fiscal year ended May
31, 2002 for professional services rendered for: (i) the audit of the Funds&#146; annual
financial statements included in each Fund&#146;s report to stockholders; (ii) all other audit
related services provided to each Fund; and (iii) all non-audit services provided to each
Fund, FAM, and entities controlling, controlled by or under common control with FAM that
provide services to the Fund. For each Fund&#146;s fiscal year ended May 31, 2002, the
independent auditors did</font></td></tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 13</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2>not render any professional services for
financial information systems design and implementation services to the Funds, FAM or
entities controlling, controlled by or under common control with FAM that provide
services to the Funds. The Committee of each Fund has determined that the provision of
other audit related services under clause (ii) and the provision of non-audit services
under clause (iii) are compatible with maintaining the independence of the independent
auditors. Representatives of D&amp;T are expected to be present at the Meetings and will
have an opportunity to make a statement if they so desire and to respond to questions
from stockholders.</font></td></tr></table>


<br>
<table cellspacing=0 border=0 cellpadding=0 width=600>
  <tr valign="bottom">
    <td width="202"> <b><font size="1">Fund </font></b>
      <hr noshade size="1" width="15%" align="left">
    </td>
    <td width="139" align="center"> <b><font size="1">Audit Fees <br>
      Charged<br>
      to the Fund </font></b>
      <hr noshade size="1" width="50%">
    </td>
    <td width="138" align="center"> <b><font size="1">Other Audit<br>
      Related Fees <br>
      Charged <br>
      to the Fund </font></b>
      <hr noshade size="1" width="50%">
    </td>
    <td width="121" align="center"> <b><font size="1">Other Fees </font></b>
      <hr noshade size="1" width="50%">
    </td>
  </tr>
  <tr>
    <td valign="TOP" width="202"> <font size=2>Corporate High Yield </font></td>
    <td valign="TOP" width="139" align="center"> <font size=2>$36,200 </font></td>
    <td valign="TOP" width="138" align="center"> <font size=2>$19,700 </font></td>
    <td valign="TOP" width="121" align="center"> <font size=2>$5,120,200 </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="202"> <font size=2>Corporate High Yield III </font></td>
    <td valign="TOP" width="139" align="center"> <font size=2>$36,200 </font></td>
    <td valign="TOP" width="138" align="center"> <font size=2>$19,700 </font></td>
    <td valign="TOP" width="121" align="center"> <font size=2>$5,120,200 </font></td>
  </tr>
  <tr>
    <td valign="TOP" width="202"> <font size=2>MuniAssets </font></td>
    <td valign="TOP" width="139" align="center"> <font size=2>$31,000 </font></td>
    <td valign="TOP" width="138" align="center"> <font size=2>$&nbsp;4,700 </font></td>
    <td valign="TOP" width="121" align="center"> <font size=2>$5,120,200 </font></td>
  </tr>
</table>
<p>
<table width=600><tr><td><font size=2><B>Address of Investment Adviser</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal
office of FAM is located at 800 Scudders Mill Road, Plainsboro, New Jersey 08536.</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Annual Report Delivery</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Each Fund will furnish,
      without charge, a copy of its annual report for the Fund&#146;s last fiscal year
      to any stockholder upon request.</b> Such requests should be directed to
      the applicable Fund, P.O. Box 9011, Princeton, New Jersey 08543-9011, Attention:
      Fund Secretary, or to 1-800-637-3863.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2><B>Stockholder Proposals</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a stockholder of any Fund
      intends to present a proposal at the 2003 Annual Meeting of Stockholders
      of such Fund, each of which is anticipated to be held in August 2003, and
      desires to have the proposal included in the Fund&#146;s proxy statement
      and form of proxy for that meeting, the stockholder must deliver the proposal
      to the offices of the appropriate Fund by March 20, 2003. The persons named
      as proxies in the proxy materials for the 2003 Annual Meetings of Stockholders
      may exercise discretionary authority with respect to any stockholder proposal
      presented at such meeting if written notice of such proposal has not been
      received by the Fund by June 9, 2003. Written proposals and notices should
      be sent to the Secretary of the respective Fund (addressed to 800 Scudders
      Mill Road, Plainsboro, New Jersey 08536).</font></td>
  </tr></table>

<p>
<table width=600>
  <tr>
    <td align=right width="312" height="101">&nbsp;</td>
    <td align=left width="276" height="101"><font size=2>By Order of the Boards
      of Directors<br>
      <br>
      D<font size="1">AVID</font> W. C<font size="1">LAYTON</font><br>
      <i>Secretary of Corporate High Yield Fund, Inc. and <br>
      Corporate High Yield Fund III, Inc.</i><br>
      <br>
      S<font size="1">TEPHEN</font> B<font size="1">ENHAM </font><br>
      <i>Secretary of MuniAssets Fund, Inc. </i></font></td>
  </tr>
</table>

<p>
<p><table width=600><tr><td><FONT SIZE="2">
Dated: July 18, 2002</FONT></td></tr></table>

<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 14</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td align=right><font size=2><B>Exhibit A</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=2><B>CHARTER OF THE AUDIT COMMITTEE
<BR>OF THE BOARD OF DIRECTORS/TRUSTEES<BR>FOR EXCHANGE LISTED FUNDS*</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although each
investment company audit committee also serves as a nominating committee, the following
charter pertains only to each audit and nominating committee&#146;s duties as an audit
committee. The Board of Directors of each investment company listed on Appendix A hereto,
has adopted the following audit committee charter:</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>I. <I>Composition of the Audit Committee</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee shall be composed of at least three Directors:</font></td></tr></table>

<P>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(a)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> each of whom shall not be an &#147;interested person&#148;
      of the Fund, as defined in Section 2(a)(19) of the Investment Company Act
      of 1940, as amended;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(b)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> each of whom shall not have any relationship to
      the Fund that may interfere with the exercise of their independence from
      Fund management and the Fund;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(c)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> each of whom shall otherwise satisfy the applicable
      independence requirements for any stock exchange or market quotation system
      on which Fund shares are listed or quoted;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(d)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> each of whom shall be financially literate, as
      such qualification is interpreted by the Board of Directors in its business
      judgment, or shall become financially literate within a reasonable period
      of time after his or her appointment to the Audit Committee; and</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(e)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>(e) at least one of whom shall have accounting
      or related financial management expertise as the Board of Directors interprets
      such qualification in its business judgment.</font></td>
  </tr>
</table>
<p></P>

<p><table width=600><tr>
    <td><font size=2><B>II. <i>Purposes of the Audit Committee</i></B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purposes of
the Audit Committee are to assist the Board of Directors:</font></td></tr></table>

<P>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(a)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> in its oversight of the Fund&#146;s accounting and
      financial reporting policies and practices, the Fund&#146;s internal audit controls
      and procedures and, as appropriate, the internal audit controls and procedures
      of certain of the Fund&#146;s service providers;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(b)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> in its oversight of the Fund&#146;s financial statements
      and the independent audit thereof; and </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(c)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> in acting as a liaison between the Fund&#146;s independent
      accountants and the Board of Directors.</font></td>
  </tr>
</table>
<p></P>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The function of
the Audit Committee is oversight. Fund management is responsible for maintaining
appropriate systems for accounting. The independent accountants of the Fund are
responsible for conducting a proper audit of the Fund&#146;s financial statements.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><B>III. <i>Responsibilities and Duties of the Audit Committee</i></B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The policies and
procedures of the Audit Committee shall remain flexible to facilitate its ability to
react to changing conditions and to generally discharge its functions. The following
listed responsibilities describe areas of attention in broad terms.</font></td></tr></table>

<table width=600><tr><td><hr size=1 noshade align=left  width=75></td></tr></table>
<table width=600><tr><td width=3% align=right valign=top><font size="1">* </font></td><td width=2%><font size="1"></font></td>
    <td width=95%><font size="1">Adopted by each of Corporate High Yield Fund,
      Inc., Corporate High Yield Fund III, Inc. and MuniAssets Fund, Inc. </font></td>
  </tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> </font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To carry out its
purposes, the Audit Committee shall have the following responsibilities and duties:</font></td></tr></table>

<P>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(a)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to recommend the selection, retention or termination
      of the Fund&#146;s independent accountants based on an evaluation of their independence
      and the nature and performance of audit services and other services;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(b)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to ensure that the independent accountants for
      the Fund submit on a periodic basis to the Audit Committee a formal written
      statement delineating all relationships between such independent accountants
      and the Fund, consistent with Independence Standards Board Standard No.
      1, and actively engage in a dialogue with the independent accountants for
      the Fund with respect to any disclosed relationships or services that may
      impact the objectivity and independence of such independent accountants
      and, if deemed appropriate by the Audit Committee, to recommend that the
      Board of Directors take appropriate action in response to the report of
      such independent accountants to satisfy itself of the independence of such
      independent accountants;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(c)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to receive specific representations from the independent
      accountants with respect to their independence and to consider whether the
      provision of any disclosed non-audit services by the independent accountants
      is compatible with maintaining the independence of those accountants;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(d)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to review the fees charged by independent accountants
      for audit and other services;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(e)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to review with the independent accountants arrangements
      for annual audits and special audits and the scope thereof;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(f)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to discuss with the independent accountants those
      matters required by SAS No. 61 and SAS No. 90 relating to the Fund&#146;s financial
      statements, including, without limitation, any adjustment to such financial
      statements recommended by such independent accountants, or any other results
      of any audit;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(g)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to consider with the independent accountants their
      comments with respect to the quality and adequacy of the Fund&#146;s accounting
      and financial reporting policies, practices and internal controls and management&#146;s
      responses thereto, including, without limitation, the effect on the Fund
      of any recommendation of changes in accounting principles or practices by
      management or the independent accountants;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(h)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to report to the Board of Directors regularly
      with respect to the Audit Committee&#146;s activities and to make any recommendations
      it believes necessary or appropriate with respect to the Fund&#146;s accounting
      and financial reporting policies, practices and the Fund&#146;s internal controls;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(i)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to review and reassess the adequacy of this Charter
      on an annual basis and recommend any changes to the Board of Directors;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size="2">(j)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to review legal and regulatory matters presented
      by counsel and the independent accountants for the Fund that may have a
      material impact on the Fund&#146;s financial statements;</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size="2">(k)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to cause to be prepared and to review and submit
      any report, including any recommendation of the Audit Committee, required
      to be included in the Fund&#146;s annual proxy statement by the rules of the
      Securities and Exchange Commission;</font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 2</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>
<p></P>

<P>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(l)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to assist the Fund, if necessary, in preparing
      any written affirmation or written certification required to be filed with
      any stock exchange on which Fund shares are listed; and</font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=2>(m)</font></td>
    <td width=3%></td>
    <td width=93%><font size=2> to perform such other functions consistent with
      this Charter, the Fund&#146;s By-laws and governing law, as the Audit Committee
      or the Board of Directors deems necessary or appropriate.</font></td>
  </tr>
</table>
<p></P>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fulfilling
their responsibilities hereunder, it is recognized that members of the Audit Committee
are not full-time employees of the Fund and are not, and do not represent themselves to
be, accountants or auditors by profession or experts in the field of accounting or
auditing. As such, it is not the duty or responsibility of the Audit Committee or its
members to conduct &#147;field work&#148; or other types of auditing or accounting reviews or
procedures, and each member of the Audit Committee shall be entitled to rely on (i) the
integrity of those persons and organizations inside and outside the Fund from which the
Audit Committee receives information and (ii) the accuracy of the financial and other
information provided to the Audit Committee by such persons or organizations absent
actual knowledge to the contrary (which actual knowledge shall be promptly reported to
the Board of Directors).</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The independent
accountants for the Fund are ultimately accountable to the Board of Directors and the
Audit Committee. The Board of Directors and the Audit Committee have the ultimate
authority and responsibility to select, evaluate and, where appropriate, replace the
independent accountants for the Fund (or to nominate the independent accountants to be
proposed for shareholder approval in the proxy statement).</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>IV. <I>Meetings</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee shall meet at least once annually with the independent accountants (outside the
presence of Fund management) and at least once annually with the representatives of Fund
management responsible for the financial and accounting operations of the Fund. The Audit
Committee shall hold special meetings at such times as the Audit Committee believes
appropriate. Members of the Audit Committee may participate in a meeting of the Audit
Committee by means of conference call or similar communications equipment by means of
which all persons participating in such meeting can hear each other.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2"><B>V. <I>Outside Resources and Assistance from Fund
Management</I></B></FONT></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appropriate
officers of the Fund shall provide or arrange to provide such information, data and
services as the Audit Committee may request. The Audit Committee shall have the power and
authority to take all action it believes necessary or appropriate to discharge its
responsibilities, including the authority to retain at the expense of the Fund their own
counsel and other experts and consultants whose expertise would be considered helpful to
the Audit Committee.</font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2">
Dated June 6, 2000<BR>Revised April 11, 2001</FONT></td></tr></table>

<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> 3</font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 6; page: 6" -->
<p>




<p><table width=600><tr><td align=right><font size=2><B>APPENDIX A</B></font></td></tr></table>

<p><table width=600><tr><td><FONT SIZE="2">
CORPORATE HIGH YIELD FUND, INC.</FONT></td></tr></table>

<table width=600><tr><td><FONT SIZE="2">
CORPORATE HIGH YIELD FUND III, INC.</FONT></td></tr></table>

<table width=600><tr><td><FONT SIZE="2">
MUNIASSETS FUND, INC.</FONT></td></tr></table>



<p>&nbsp;
<table width=600>
  <tr>
    <td width=60 align=left><font size=1>&nbsp;</font></td>
    <td width=480 align=center><font size="2"> </font></td>
    <td width=60 align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<hr size=5 noshade width=600 align=LEFT>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 3; page: 3" -->







<p><table width=600><tr><td align=right><font size=3><B>COMMON STOCK</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND, INC.
<BR>P.O. Box 9011 <BR>Princeton, New Jersey 08543-9011</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf of the Board of Directors</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald C. Burke,
Terry K. Glenn and David W. Clayton as proxies, each with the power to appoint his
substitute, and hereby authorizes each of them to represent and to vote, as designated on
the reverse hereof, all the Common Stock of Corporate High Yield Fund, Inc. (the &#147;Fund&#148;)
held of record by the undersigned on June 27, 2002 at the annual meeting of stockholders
of the Fund to be held on August 22, 2002 or any adjournment thereof.</font></td></tr></table>

<p><table width=600>
<tr><td width=60>&nbsp;</td>
    <td width=540><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted FOR Proposal 1.</b></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal 1 as marked, or if not marked, to vote
&#147;FOR&#148; Proposal 1, and to use their discretion to vote for any other matter as may
properly come before the meeting or any adjournment thereof. If you do not intend to
personally attend the meeting, please complete and return this card at once in the
enclosed envelope.</font></td></tr></table>

<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on
the reverse side)</font></td></tr></table>





<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 4; page: 4" -->





<p>&nbsp;

<p>
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><FONT SIZE="1"><B><I>(INSTRUCTION: To withhold authority to vote for
any individual or nominee, strike a line through the nominee&#146;s name in the list below.)</I>
James H. Bodurtha, Terry K. Glenn, Joe Grills, Herbert I. London, Andr&eacute; F. Perold,
Roberta Cooper Ramo, Robert S. Salomon, Jr., Melvin R. Seiden and Stephen B. Swensrud.</B></FONT></td></tr></table>

<P><table width=600><TR>
    <TD width=4% valign=top><font size=2>
2. </FONT></TD>
    <TD width=96% valign=top><font size=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.</font></TD>
  </TR></TABLE><p></P>


<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly as name
      appears hereon. When stock is held by joint tenants, both should sign. When
      signing as attorney or as executor, administrator, trustee or guardian,
      please give full title as such. If a corporation, please sign in full corporate
      name by president or other authorized officer. If a partnership, please
      sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2002 </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<p>
<table width=600><tr>
    <td><font size=2><B>Sign, Date and Return the Proxy Card Promptly
Using the Enclosed Envelope.</B></font></td>
  </tr></table>




<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;







<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 5; page: 5" -->



<p><table width=600><tr><td align=right><font size=3><B>COMMON STOCK</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>CORPORATE HIGH YIELD FUND III,
INC. <BR>P.O. Box 9011 <BR>Princeton, New Jersey 08543-9011</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf of the Board of Directors</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald C. Burke,
Terry K. Glenn and David W. Clayton as proxies, each with the power to appoint his
substitute, and hereby authorizes each of them to represent and to vote, as designated on
the reverse hereof, all the Common Stock of Corporate High Yield Fund III, Inc. (the
&#147;Fund&#148;) held of record by the undersigned on June 27, 2002 at the annual meeting of
stockholders of the Fund to be held on August 22, 2002 or any adjournment thereof.</font></td></tr></table>

<p><table width=600>
<tr><td width=60>&nbsp;</td>
    <td width=540><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted FOR Proposal 1.</b></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal 1 as marked, or if not marked, to vote
&#147;FOR&#148; Proposal 1, and to use their discretion to vote for any other matter as may
properly come before the meeting or any adjournment thereof. If you do not intend to
personally attend the meeting, please complete and return this card at once in the
enclosed envelope.</font></td></tr></table>

<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on
the reverse side)</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp;










<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 6; page: 6" -->









<p>&nbsp;

<p>
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><FONT SIZE="1"><B><I>(INSTRUCTION: To withhold authority to vote for
any individual or nominee, strike a line through the nominee&#146;s name in the list below.)</I>
James H. Bodurtha, Terry K. Glenn, Joe Grills, Herbert I. London, Andr&eacute; F. Perold,
Roberta Cooper Ramo, Robert S. Salomon, Jr., Melvin R. Seiden and Stephen B. Swensrud.</B></FONT></td></tr></table>

<P><table width=600><TR>
    <TD width=4% valign=top><font size=2>
2. </FONT></TD>
    <TD width=96% valign=top><font size=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.</font></TD>
  </TR></TABLE><p></P>


<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly as name
      appears hereon. When stock is held by joint tenants, both should sign. When
      signing as attorney or as executor, administrator, trustee or guardian,
      please give full title as such. If a corporation, please sign in full corporate
      name by president or other authorized officer. If a partnership, please
      sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2002 </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<p>
<table width=600><tr><td><font size=2><B>Sign, Date and Return the Proxy Card Promptly
Using the Enclosed Envelope.</B></font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->




<p><table width=600><tr><td align=right><font size=3><B>COMMON STOCK</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>MUNIASSETS FUND, INC. <BR>P.O. Box
9011 <BR>Princeton, New Jersey 08543-9011</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>PROXY</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=3><B>This proxy is solicited on
behalf of the Board of Directors</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2>The undersigned hereby appoints Donald C. Burke,
Terry K. Glenn and Stephen Benham as proxies, each with the power to appoint his
substitute, and hereby authorizes each of them to represent and to vote, as designated on
the reverse hereof, all the Common Stock of MuniAssets Fund, Inc. (the &#147;Fund&#148;) held of
record by the undersigned on June 27, 2002 at the annual meeting of stockholders of the
Fund to be held on August 22, 2002 or any adjournment thereof.</font></td></tr></table>

<p><table width=600>
<tr><td width=60>&nbsp;</td>
    <td width=540><font size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
proxy when properly executed will be voted in the manner directed herein by the
undersigned stockholder. If no direction is made, this proxy will be voted FOR Proposal 1.</b></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>By signing and dating the reverse side of this
card, you authorize the proxies to vote Proposal 1 as marked, or if not marked, to vote
&#147;FOR&#148; Proposal 1, and to use their discretion to vote for any other matter as may
properly come before the meeting or any adjournment thereof. If you do not intend to
personally attend the meeting, please complete and return this card at once in the
enclosed envelope.</font></td></tr></table>

<p><table width=600><tr><td align=right><font size=1>(Continued and to be signed on
the reverse side)</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp;






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 8; page: 8" -->
<p>&nbsp;

<p>
<table width=600>
  <tr>
    <td><font size=2>Please mark boxes <font size="5">&#149;</font> or |X| in
      blue or black ink. </font></td>
  </tr>
</table>
<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr align="left" valign="top">
    <td><font size="2">1. ELECTION OF DIRECTORS </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>FOR</b> all nominees listed below <br>
      (except as marked to the contrary <br>
      below) |_| </font></td>
    <td>&nbsp;</td>
    <td><font size="2"><b>WITHHOLD AUTHORITY</b> <br>
      to vote for all nominees listed <br>
      below |_| </font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td><FONT SIZE="2"><B><I><font size="1">(INSTRUCTION: To withhold authority to vote for
any individual or nominee, strike a line through the nominee&#146;s name in the list below.)</font></I></B></FONT></td>
  </tr></table>

<br>
<table width="620" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="bottom">
    <td width="346"><font size="1">Class I Nominee to serve until the 2004 Annual Meeting of Stockholders:         </font></td>
    <td width="274"><font size="1"><b>James H. Bodurtha</b></font></td>
  </tr>
  <tr align="left" valign="bottom">
    <td width="346">&nbsp;</td>
    <td width="274">&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td width="346"><font size="1">Class II Nominees to serve until the 2005 Annual Meeting of Stockholders:       </font></td>
    <td width="274"><b><font size="1">Terry K. Glenn, Herbert I. London and Andr&eacute; F. Perold</font></b></td>
  </tr>
  <tr align="left" valign="bottom">
    <td width="346">&nbsp;</td>
    <td width="274">&nbsp;</td>
  </tr>
  <tr align="left" valign="bottom">
    <td width="346"><font size="1">Class III Nominee to serve until the 2003 Annual Meeting of Stockholders:</font></td>
    <td width="274"><b><font size="1">Roberta Cooper Ramo</font></b></td>
  </tr>
</table>
<br>
<table width=600><TR>
    <TD width=4% valign=top><font size=2>
2. </FONT></TD>
    <TD width=96% valign=top><font size=2>In
the discretion of such proxies, upon such other business as may properly come before the
meeting or any adjournment thereof.</font></TD>
  </TR></TABLE><p></P>


<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr>
    <td width="231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="left" valign="bottom" width="369"> <font size="1">Please sign exactly as name
      appears hereon. When stock is held by joint tenants, both should sign. When
      signing as attorney or as executor, administrator, trustee or guardian,
      please give full title as such. If a corporation, please sign in full corporate
      name by president or other authorized officer. If a partnership, please
      sign in partnership name by authorized person.</font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">Dated: ________________________________________________,
      2002 </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X__________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369">&nbsp;</td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td width="369"><font size="1">X __________________________________________________________
      </font></td>
  </tr>
  <tr>
    <td width="231">&nbsp;</td>
    <td align="left" valign="top" width="369">
      <p><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature,
        if held jointly </font> </p>
    </td>
  </tr>
</table>
<p>
<table width=600><tr><td><font size=2><B>Sign, Date and Return the Proxy Card Promptly
Using the Enclosed Envelope.</B></font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>\
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