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<SEC-DOCUMENT>0000900092-02-000156.txt : 20021223
<SEC-HEADER>0000900092-02-000156.hdr.sgml : 20021223
<ACCEPTANCE-DATETIME>20021223150723
ACCESSION NUMBER:		0000900092-02-000156
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20021031
FILED AS OF DATE:		20021223
EFFECTIVENESS DATE:		20021223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIYIELD PENNSYLVANIA FUND
		CENTRAL INDEX KEY:			0000891038
		IRS NUMBER:				223199516
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-07136
		FILM NUMBER:		02866774

	BUSINESS ADDRESS:	
		STREET 1:		800 SCUDDERS MILL RD
		CITY:			PLAINSBORO
		STATE:			NJ
		ZIP:			08543-9011
		BUSINESS PHONE:		6092822800

	MAIL ADDRESS:	
		STREET 1:		PO BOX 9011
		STREET 2:		C/O MERRILL LYNCH ASSET MANAGEMENT
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08543-9011
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>ml6954.txt
<DESCRIPTION>MUNIYIELD PENNSYLVANIA INSURED
<TEXT>
(BULL LOGO)
Merrill Lynch Investment Managers



Annual Report
October 31, 2002


MuniYield Pennsylvania
Insured Fund




www.mlim.ml.com



MuniYield Pennsylvania Insured Fund seeks to provide shareholders
with as high a level of current income exempt from Federal and
Pennsylvania income taxes as is consistent with its investment
policies and prudent investment management by investing primarily in
a portfolio of long-term municipal obligations the interest on
which, in the opinion of bond counsel to the issuer, is exempt from
Federal and Pennsylvania income taxes.

This report, including the financial information herein, is
transmitted to shareholders of MuniYield Pennsylvania Insured Fund
for their information. It is not a prospectus. Past performance
results shown in this report should not be considered a
representation of future performance. The Fund has leveraged its
Common Shares and intends to remain leveraged by issuing Preferred
Shares to provide the Common Shareholders with a potentially higher
rate of return. Leverage creates risks for Common Shareholders,
including the likelihood of greater volatility of net asset value
and market price of the Common Shares, and the risk that
fluctuations in the short-term dividend rates of the Preferred
Shares may affect the yield to Common Shareholders. Statements and
other information herein are as dated and are subject to change.



MuniYield Pennsylvania Insured Fund
Box 9011
Princeton, NJ
08543-9011


Printed on post-consumer recycled paper





MUNIYIELD PENNSYLVANIA INSURED FUND


The Benefits
And Risks of
Leveraging


MuniYield Pennsylvania Insured Fund utilizes leveraging to
seek to enhance the yield and net asset value of its Common Shares.
However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Shares, which
pay dividends at prevailing short-term interest rates, and invests
the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Shareholders in the form of
dividends, and the value of these portfolio holdings is reflected in
the per share net asset value of the Fund's Common Shares. However,
in order to benefit Common shareholders, the yield curve must be
positively sloped; that is, short-term interest rates must be lower
than long-term interest rates. At the same time, a period of
generally declining interest rates will benefit Common Shareholders.
If either of these conditions change, then the risks of leveraging
will begin to outweigh the benefits.

To illustrate these concepts, assume a fund's Common Share
capitalization of $100 million and the issuance of Preferred Shares
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-
term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Shares based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Shares.

In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the
Common Shares will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Shares (that is, their
price as listed on the New York Stock Exchange) may, as a result,
decline. Furthermore, if long-term interest rates rise, the Common
Shares' net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Shares does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Shares may
also decline.

As a part of its investment strategy, the Fund may invest in certain
securities whose potential income return is inversely related to
changes in a floating interest rate ("inverse floaters"). In
general, income on inverse floaters will decrease when short-term
interest rates increase and increase when short-term interest rates
decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of
providing investment leverage and, as a result, the market value of
such securities will generally be more volatile than that of fixed-
rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than
if the Fund did not invest in these securities.




Swap
Agreements

The Fund may also invest in swap agreements, which are over-the-
counter contracts in which one party agrees to make periodic
payments based on the change in market value of a specified bond,
basket of bonds, or index in return for periodic payments based on a
fixed or variable interest rate or the change in market value of a
different bond, basket of bonds or index. Swap agreements may be
used to obtain exposure to a bond or market without owning or taking
physical custody of securities.


MuniYield Pennsylvania Insured Fund, October 31, 2002


DEAR SHAREHOLDER

For the year ended October 31, 2002, the Common Shares of MuniYield
Pennsylvania Insured Fund earned $.978 per share income dividends,
which included earned and unpaid dividends of $.082. This represents
a net annualized yield of 6.36%, based on a year-end net asset value
of $15.34 per share. During the same period, the total investment
return on the Fund's Common Shares was +7.84%, based on a change in
per share net asset value from $15.19 to $15.34, and assuming
reinvestment of $.975 per share income dividends.

For the six-month period ended October 31, 2002, the total
investment return on the Fund's Common Shares was +7.13%, based on a
change in per share net asset value from $14.79 to $15.34, and
assuming reinvestment of $.492 per share income dividends.

For the six-month period ended October 31, 2002, the Fund's Auction
Market Preferred Shares had an average yield of 1.28% for Series A
and 1.27% for Series B.

The Municipal Market Environment
During the six-month period ended October 31, 2002, the direction of
long-term fixed income interest rates was driven as much by volatile
U.S. equity markets and continued worldwide political tensions as by
economic fundamentals. After rising steadily early in 2002, bond
yields reversed course to move sharply lower throughout most of the
period. Positive economic fundamentals repeatedly were overwhelmed
by falling equity valuations and declines in investor confidence.
U.S. gross domestic product (GDP) activity for the first quarter of
2002 measured at 5%, considerably above the level of economic growth
seen at the end of 2001. During May and June, a number of economic
indicators, such as housing activity, consumer spending and weekly
unemployment claims, all pointed to at least a modest economic
recovery by the end of 2002. However, steady dramatic declines in
U.S. equity markets led the majority of investors to conclude that
the Federal Reserve Board was unlikely to increase short-term
interest rates for the remainder of the year. U.S. Treasury issue
prices were also boosted by erupting Middle East and India/Pakistan
conflicts that led many international investors to seek the safe-
haven status of U.S. Treasury securities. By the end of June 2002,
long-term U.S. Treasury bond yields had declined to 5.50%, a decline
of almost 35 basis points (.35%) from their recent highs in mid-
March.

In late July, second quarter U.S. GDP growth was initially estimated
at 1.1%. While subject to revision, this estimate suggested that
continued declines in U.S. equity prices were negatively affecting
not only consumer but business confidence as well and undermining
much of the economic growth witnessed earlier this year. Some
analysts extrapolated that recent weakness would continue, if not
accelerate. This brought about forecasts that the Federal Reserve
Board would soon be obliged to lower short-term interest rates both
to offset equity market declines and boost consumer and business
spending. The possibility of lower short-term interest rates helped
push longer-term bond yields lower still during July and August. The
dramatic decline in U.S. equity prices in late August and September
triggered a significant fixed income rally as investors again sought
the safe-haven status of U.S. Treasury securities. By the end of
September, U.S. Treasury bond yields fell to 4.66%.

Bolstered by an unexpected decline in the national unemployment rate
to 5.6% in early October, U.S. equity markets staged a strong rally
throughout much of the month. The Standard & Poor's 500 Index rose
more than 8% for the month, triggered by stronger-than-expected
earnings reports from a large number of companies, such as General
Electric Company, International Business Machines Corporation and
Microsoft Corporation. Bond prices continued to trade in an inverse
relationship to equity prices. Consequently, as stocks rallied, bond
yields rose in October, despite generally weak economic releases.
During October, the U.S. housing sector remained quite robust, but
retail sales and industrial production slowed. By October 31, 2002,
long-term U.S. Treasury bond yields rose to almost 5%, a monthly
increase of more than 30 basis points. During the past six months,
the yield on 30-year U.S. Treasury bonds declined over 60 basis
points.

For the six-month period ended October 31, 2002, municipal bond
prices also generally increased. Similar to their taxable
counterparts, municipal bond yields rose in early 2002, largely on
the expectation of short-term interest rate increases by the Federal
Reserve Board. By late March, long-term municipal revenue bond
yields, as measured by the Bond Buyer Revenue Bond Index, rose to
5.67%, their highest level in more than a year. During recent
months, tax-exempt bond yields have generally declined largely in
response to the positive fixed income environment engendered by
falling equity valuations. The municipal bond market's price
advances in tax-exempt issues, however, have not been able to keep
pace with U.S. Treasury issues as municipal bonds cannot offer
foreign investors the safe-haven status U.S. Treasury issues enjoy
in periods of economic and financial instability. The municipal bond
market's recent price advances have also been supported by the
continued improvement in the tax-exempt market's technical position.
Despite sizeable advances in the rate of new municipal bond
issuance, investor demand has increased, allowing tax-exempt bond
prices to rise. By the end of October 2002, long-term municipal
revenue bond yields stood at 5.20%, a decline of more than 30 basis
points during the past six months.

Investor demand has remained very positive throughout the period.
The Investment Company Institute reported that thus far in 2002,
municipal bond fund net cash flows remained very strong at over
$17.5 billion, up nearly 80% compared to the same period in 2001.
Additionally, investors received from June to August 2002
approximately $75 billion from bond maturities, proceeds from early
redemptions and coupon income. Given the current weakness in U.S.
equity markets, much of these monies were likely reinvested in tax-
exempt products. Perhaps more importantly, short-term municipal
rates have continued to move lower in response to Federal Reserve
Board actions. In reaction to Federal Reserve Board interest rate
reductions, short-term municipal rates have declined to the 1%--
1.50% range. As interest rates have declined, investors have
extended maturities to take advantage of the steep municipal bond
yield curve. The significant income sacrifice incurred by remaining
in cash reserves has resulted in ongoing strong demand for municipal
securities, especially in the 5-year--15-year maturity range.

Recent performance by the tax-exempt market has been even more
impressive considering the increase in new bond issuance seen thus
far in 2002. Nationwide, municipalities have used present low
interest rate levels both to refinance older debt and fund new
capital projects. Over the past six months, more than $200 billion
in new long-term municipal bonds was issued, an increase of nearly
40% compared to the same period in 2001. Nearly $100 billion in long-
term tax-exempt securities was underwritten during the October
quarter of 2002, an increase of over 40% compared to the October
quarter of 2001 level.

In the coming months, interest rates are likely to remain volatile,
with an expected upward bias. However, until equity market
conditions stabilize, interest rates should remain near their
current historically low levels. While recent stock market declines
appear to have negatively affected economic growth in recent months,
business activity is likely to accelerate going forward. While
governmental stimulus in response to the September 11, 2001 attacks
has been significant, the recent 50 basis point decrease in interest
rates by the Federal Reserve Board should provide additional
incentive to the sluggish U.S. economy. The ongoing U.S. military
response to world-wide terrorism has reduced a once-sizeable Federal
surplus to a material deficit. Further military action in early 2003
would likely result in higher Federal spending, deficits and
increased Treasury financing. Increased Federal borrowings can be
expected to put upward pressure on interest rates going forward.

Equity market declines helped push interest rates to lower levels
than economic fundamentals alone would support. When U.S. equity
markets stabilize and economic activity resumes, associated interest
rate increases should not be extreme. Inflationary pressures have
remained subdued, meaning that significant interest rate increases
are unlikely. As equity valuations are likely to only gradually
recover, U.S. economic recovery is also likely to be a moderate
process. This suggests that the pace of any interest rate increases
will be gradual. As the municipal bond market's strong technical
position can be expected to remain supportive in the coming months,
future tax-exempt rate increases should be more restrained than
their taxable counterparts.

Specific to Pennsylvania, recent unemployment figures revealed
continued weakness in the commonwealth's labor market as
unemployment rates (for September 2002) jumped from 4.8% to 5.2% in
a year-over-year comparison. However, the commonwealth's employment
picture remains favorable to the region and rest of the nation as
the United States registered an unemployment rate of 5.6% during the
same period. Sound financial management and forecasting enabled the
state to minimize its drawing down on reserves and maintain a Rainy
Day Fund. However, like most of the nation, Pennsylvania's fiscal
year 2003 budget is likely to experience strain given the weak
economic backdrop and declining revenues. For the six-month period
ended October 31, 2002, debt levels were close to reported national
averages and long-term socioeconomic and wealth statistics exhibited
favorable trends. On a relative wealth basis, the commonwealth's per
capita income of $30,617 in 2001 placed it as the 15th wealthiest
state in the nation.

Portfolio Strategy
For the six-month period ended October 31, 2002, our investment
strategy was to seek to enhance the Fund's level of tax-exempt
income and moderate its net asset value volatility. Accordingly, we
focused, for the most part, on the acquisition of higher-coupon
securities in the 20-year--23-year maturity range. This is a slight
change from the prior six-month period when we concentrated on the
purchase of securities with slightly shorter maturities. A recent
steepening in the tax-exempt yield curve made it advantageous to
extend maturity to capture the available incremental yield. Even
with this shift in maturity, however, the average maturity of the
Fund was 21 years at October 31, 2002.

Going forward, we are reasonably sanguine that municipal interest
rates will decline further in the months ahead. The economic outlook
is still full of uncertainty, and there is little evidence that a
sustained rebound is imminent. Inflation remains subdued and some
economists have become more concerned about the risk of deflation.
We believe that the Federal Reserve Board is on hold concerning
raising interest rates and will maintain its current accommodative
position, perhaps even lowering interest rates if necessary. In
addition, we believe that without any material improvement in the
equity market, retail investors are likely to allocate more of their
investment funds into municipal bonds. Our portfolio strategy
remains focused on increasing portfolio yield and preserving recent
gains in the Fund's net asset value. During the six-month period
ended October 31, 2002, we continued our strategy of overweighting
premium coupon securities in the 20-year--23-year maturity sector,
maintaining the Fund's high credit quality profile and remaining
fully invested.

During the six-month period ended October 31, 2002, the Fund's
borrowing costs remained in the 1%--1.25% range. These attractive
funding levels, in combination with a steep tax-exempt yield curve,
generated a material income benefit to the Fund's Common Stock
shareholder. Further declines in the Fund's borrowing costs would
require significant easing of monetary policy by the Federal Reserve
Board. While such action is not expected, an increase in short-term
interest rates by the Federal Reserve Board is even less
anticipated. We expect the Fund's short-term borrowing cost to stay
near current levels for the remainder of this year and into 2003.
However, should the spread between short-term and long-term interest
rates narrow, the benefits of leverage will decline and, as a
result, reduce the yield on the Fund's Common Stock. (For a more
complete explanation of the benefits and risks of leveraging, see
page 1 of this report to shareholders.)

In Conclusion
We appreciate your ongoing interest in MuniYield Pennsylvania
Insured Fund, and we look forward to assisting you with your
financial needs in the months and years ahead.

Sincerely,


(Terry K. Glenn)
Terry K. Glenn
President and Trustee



(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President



(John M. Loffredo)
John M. Loffredo
Senior Vice President



(William R. Bock)
William R. Bock
Vice President and Portfolio Manager



November 26, 2002



MuniYield Pennsylvania Insured Fund, October 31, 2002


Portfolio
Abbreviations


To simplify the listings of MuniYield Pennsylvania Insured Fund's
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list at right.

AMT           Alternative Minimum Tax
              (subject to)
DRIVERS       Derivative Inverse Tax-Exempt Receipts
EDR           Economic Development
              Revenue Bonds
GO            General Obligation Bonds
HFA           Housing Finance Agency
IDA           Industrial Development Authority
PCR           Pollution Control Revenue Bonds
RIB           Residual Interest Bonds
S/F           Single-Family
VRDN          Variable Rate Demand Notes


<TABLE>
SCHEDULE OF INVESTMENTS                                                                                     (in Thousands)
<CAPTION>
          S&P          Moody's     Face
STATE     Ratings+++   Ratings+++ Amount   Issue                                                                     Value
<S>           <S>       <S>       <C>      <S>                                                                       <C>
Pennsylvania  AAA       Aaa       $ 2,000  Allegheny County, Pennsylvania, Hospital Development Authority Revenue
- --132.2%                                   Bonds (Allegheny General Hospital Project), Series A, 6.25% due
                                           9/01/2007 (e)                                                             $  2,322

              AAA       Aaa         6,000  Allegheny County, Pennsylvania, Port Authority, Special Transportation
                                           Revenue Bonds, 6% due 3/01/2009 (d)(e)(i)                                    6,998

                                           Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue
                                           Bonds (d):
              AAA       Aaa         3,660    5.75% due 12/01/2018                                                       4,042
              AAA       Aaa        10,000    5.375% due 12/01/2024                                                     10,293
              AAA       Aaa         9,000    5.50% due 12/01/2024                                                       9,460

              AAA       Aaa         2,550  Berks County, Pennsylvania, GO, Refunding, 5.85% due 11/15/2018 (c)          2,763

              NR*       Aaa         4,500  Bucks County, Pennsylvania, Water and Sewer Authority, Revenue
                                           Refunding Bonds (Neshaminy Interceptor Sewer System), 5.60% due
                                           6/01/2024 (a)                                                                4,756
</TABLE>



MuniYield Pennsylvania Insured Fund, October 31, 2002


<TABLE>
SCHEDULE OF INVESTMENTS (continued)                                                                         (in Thousands)
<CAPTION>
          S&P          Moody's     Face
STATE     Ratings+++   Ratings+++ Amount   Issue                                                                     Value
<S>           <S>       <S>       <C>      <S>                                                                       <C>
Pennsylvania  AAA       Aaa       $ 4,000  Gettysburg, Pennsylvania, Municipal Authority, College Revenue
(concluded)                                Refunding Bonds, 5% due 8/15/2023 (d)                                     $  4,016

              AAA       Aaa         3,280  Johnstown, Pennsylvania, GO, Refunding, 6.45% due 10/01/2019 (c)             3,535

              AAA       Aaa         7,000  Lehigh County, Pennsylvania, General Purpose Authority Revenue
                                           Bonds (Saint Luke's Hospital--Bethlehem), 6.25% due 7/01/2022 (a)            7,161

              AAA       Aaa        10,750  Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania
                                           Power and Light Company Project), Series A, 6.40% due 11/01/2021 (d)        11,000

              NR*       A3          1,500  Luzerne County, Pennsylvania, IDA, Exempt Facilities Revenue Bonds
                                           (Pennsylvania Gas and Water Company Project), AMT, Series B,
                                           7.125% due 12/01/2022                                                        1,533

                                           Luzerne County, Pennsylvania, IDA, Exempt Facilities Revenue
                                           Refunding Bonds (Pennsylvania Gas and Water Company Project),
                                           AMT, Series A:
              NR*       A3          2,500    7.20% due 10/01/2017                                                       2,555
              AAA       Aaa         5,000    7% due 12/01/2017 (a)                                                      5,583

              AAA       Aaa         4,000  Norwin, Pennsylvania, School District, GO, 6% due 4/01/2010 (c)(e)           4,665

              NR*       Aaa         3,055  Pennsbury, Pennsylvania, School District, GO, Refunding, 5.50%
                                           due 1/15/2020 (c)                                                            3,273

              BBB       Baa2        6,500  Pennsylvania Economic Development Financing Authority, Wastewater
                                           Treatment Revenue Bonds (Sun Company Inc.--R & M Project), AMT,
                                           Series A, 7.60% due 12/01/2024                                               6,915

              AA+       Aa2         2,000  Pennsylvania HFA, Revenue Bonds, RIB, AMT, 10.544% due 4/01/2025 (g)         2,070

              AAA       Aaa         8,000  Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 70A,
                                           5.80% due 10/01/2021 (d)                                                     8,375

                                           Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT (d):
              AAA       Aaa         1,200    Series 39B, 6.875% due 10/01/2024                                          1,244
              AAA       Aaa         1,690    Series 41B, 6.65% due 4/01/2025                                            1,750
              AAA       Aaa         1,695    Series 60A, 5.85% due 10/01/2027                                           1,754

              AAA       Aaa         6,730  Pennsylvania Intergovernmental Cooperative Authority, Special Tax
                                           Revenue Refunding Bonds (Philadelphia Funding Program), 5% due
                                           6/15/2018 (c)                                                                6,928

                                           Pennsylvania State, GO (d):
              AAA       Aaa         3,015    First Series, 5% due 6/01/2018                                             3,129
              NR*       Aaa         5,500    RIB, Series 465X, 9.34% due 10/01/2019 (g)                                 6,541
              AAA       Aaa         5,770    Refunding, First Series, 6% due 1/15/2017                                  6,529

              AAA       Aaa         1,690  Pennsylvania State Higher Educational Facilities Authority, College
                                           and University Revenue Bonds (Marywood University Project), 5.50%
                                           due 6/01/2018 (d)                                                            1,811

              AA        NR*         4,000  Pennsylvania State Higher Educational Facilities Authority, College
                                           and University Revenue Refunding Bonds (University of the Arts),
                                           5.75% due 3/15/2030                                                          4,183

                                           Pennsylvania State Higher Educational Facilities Authority Revenue
                                           Bonds (UPMC Health System), Series A:
              AAA       Aaa           175    5% due 8/01/2005 (f)                                                         187
              A+        NR*         3,000    6% due 1/15/2022                                                           3,092

                                           Pennsylvania State Higher Educational Facilities Authority, Revenue
                                           Refunding Bonds:
              A1+       NR*           400    (Carnegie Mellon University), VRDN, Series C, 1.90% due 11/01/2029 (h)       400
              AA        Baa3        1,400    (Philadelphia University), 6% due 6/01/2029                                1,503

                                           Pennsylvania State IDA, EDR Refunding Bonds (a):
              AAA       Aaa         7,000    5.50% due 7/01/2020                                                        7,544
              AAA       Aaa         1,630    5.50% due 7/01/2021                                                        1,741

              AAA       Aaa         4,000  Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue
                                           Refunding Bonds, Senior Series A, 5% due 12/01/2023 (a)                      4,018

                                           Philadelphia, Pennsylvania, Authority for Industrial Development,
                                           Airport Revenue Refunding Bonds (Philadelphia Airport System Project),
                                           AMT, Series A (c):
              AAA       Aaa         4,000    5.50% due 7/01/2017                                                        4,227
              AAA       Aaa         3,655    5.50% due 7/01/2018                                                        3,839

                                           Philadelphia, Pennsylvania, Authority for Industrial Development,
                                           Lease Revenue Bonds:
              AAA       Aaa         9,125    (City of Philadelphia Project), Series A, 5.375% due 2/15/2027 (d)         9,492
              AAA       Aaa         3,000    Series B, 5.50% due 10/01/2020 (f)                                         3,203
              AAA       Aaa         4,680    Series B, 5.50% due 10/01/2021 (f)                                         4,955

                                           Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
                                           Authority, Hospital Revenue Refunding Bonds:
              A1+       VMIG1++       100    (Children's Hospital Project), VRDN, Series A, 1.85% due 7/01/2022 (h)       100
              AAA       NR*         3,000    (Presbyterian Medical Center), 6.65% due 12/01/2019 (b)                    3,715

              AAA       Aaa         3,000  Philadelphia, Pennsylvania, Housing Authority Revenue Bonds (Capital
                                           Fund Program), Series A, 5.50% due 12/01/2018 (f)                            3,275

              AAA       Aaa         1,750  Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds
                                           (Neighborhood Transformation), Series A, 5.50% due 4/15/2022 (c)             1,845

                                           Philadelphia, Pennsylvania, School District, GO:
              NR*       Aaa         5,000    RIB, Series 677, 9.10% due 8/01/2021 (c)(g)                                5,700
              AAA       Aaa         2,000    Series A, 5.50% due 2/01/2021 (f)                                          2,119
              AAA       Aaa         7,150    Series A, 5.75% due 2/01/2030 (f)                                          7,658
              AAA       Aaa         7,000    Series B, 5.375% due 4/01/2027 (a)                                         7,133

              AAA       Aaa         3,070  Pittsburgh, Pennsylvania, GO, Series A, 5.65% due 9/01/2009 (c)(e)           3,526
                                           Pittsburgh, Pennsylvania, Public Parking Authority, Parking Revenue
                                           Bonds (a):
              AAA       Aaa         1,460    5.80% due 12/01/2017                                                       1,612
              AAA       Aaa         1,525    5.85% due 12/01/2018                                                       1,684

              A-        NR*         3,100  Sayre, Pennsylvania, Health Care Facilities Authority Revenue Bonds
                                           (Guthrie Health), Series A, 5.875% due 12/01/2031                            3,173

                                           Southeastern Pennsylvania Transportation Authority, Special Revenue
                                           Bonds (c):
              AAA       Aaa         4,500    5.375% due 3/01/2017                                                       4,836
              AAA       Aaa         2,525    5.375% due 3/01/2022                                                       2,602

              AAA       Aaa         3,500  Washington County, Pennsylvania, Capital Funding Authority Revenue
                                           Bonds (Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a)     4,042


Puerto        A         A1          2,670  Children's Trust Fund, Puerto Rico, Tobacco Settlement Revenue
Rico--15.0%                                Bonds, 5.625% due 5/15/2043                                                  2,569

              NR*       Aaa         6,755  Puerto Rico Commonwealth, GO, RIB, Series 703X, 8.873% due 7/01/2021 (c)(g)  8,266

              AAA       NR*         7,500  Puerto Rico Commonwealth, GO, Refunding, DRIVERS, Series 232, 8.87% due
                                           7/01/2017 (g)                                                                9,565
</TABLE>



MuniYield Pennsylvania Insured Fund, October 31, 2002



<TABLE>
SCHEDULE OF INVESTMENTS                                                                                     (in Thousands)
<CAPTION>
          S&P          Moody's     Face
STATE     Ratings+++   Ratings+++ Amount   Issue                                                                     Value
<S>           <S>       <S>       <C>      <S>                                                                       <C>
Puerto Rico   A         Baa1      $ 1,000  Puerto Rico Commonwealth, Highway and Transportation Authority,
(concluded)                                Transportation Revenue Bonds, Series B, 6% due 7/01/2026                  $  1,089

              NR*       Aaa         4,365  Puerto Rico Public Finance Corporation Revenue Refunding Bonds, RIB,
                                           Series 522X, 8.62% due 8/01/2022 (d)(g)                                      4,834


              Total Investments (Cost--$241,825)--147.2%                                                              258,728

              Variation Margin on Financial Futures Contracts**--0.0%                                                     (57)

              Other Assets Less Liabilities--2.9%                                                                       5,049

              Preferred Shares, at Redemption Value--(50.1%)                                                          (88,000)
                                                                                                                     --------
              Net Assets Applicable to Common Shares--100.0%                                                         $175,720
                                                                                                                     ========



(a)AMBAC Insured.
(b)Escrowed to maturity.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
(f)FSA Insured.
(g)The interest rate is subject to change periodically and
inversely based upon prevailing market rates. The interest rate
shown is the rate in effect at October 31, 2002.
(h)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at October 31, 2002.
(i)All or a portion of security held as collateral in connection
with open financial futures contracts.
*Not Rated.
**Financial futures contracts sold as of October 31, 2002 were as
follows:

                                                   (in Thousands)
Number of                             Expiration
Contracts          Issue                 Date             Value

   125      U.S. Treasury Bonds       December 2002     $  14,340
                                                        ---------
Total Financial Futures Contracts Sold
(Total Contract Price--$14,057)                         $  14,340
                                                        =========

++Highest short-term rating by Moody's Investors Service, Inc.
+++Ratings of issues shown are unaudited.

See Notes to Financial Statements.
</TABLE>


Quality Profile
(unaudited)

The quality ratings of securities in the Fund as of October 31, 2002
were as follows:

                                     Percent of
S&P Rating/Moody's Rating        Total Investments

AAA/Aaa                                 88.7%
AA/Aa                                    3.0
A/A                                      5.4
BBB/Baa                                  2.7
Other*                                   0.2


*Temporary investments in short-term municipal securities.


<TABLE>
STATEMENT OF NET ASSETS
<CAPTION>
                    As of October 31, 2002
<S>                 <S>                                                                    <C>              <C>
Assets:             Investments, at value (identified cost--$241,824,713)                                   $258,727,865
                    Cash                                                                                          63,975
                    Receivables:
                      Securities sold                                                      $ 15,179,564
                      Interest                                                                4,294,422       19,473,986
                                                                                           ------------
                    Prepaid expenses and other assets                                                             28,730
                                                                                                            ------------
                    Total assets                                                                             278,294,556
                                                                                                            ------------

Liabilities:        Payables:
                      Securities purchased                                                   14,221,313
                      Dividends to Common Stock shareholders                                    142,711
                      Investment adviser                                                        116,763
                      Variation margin                                                           56,641       14,537,428
                                                                                           ------------
                    Accrued expenses                                                                              37,127
                                                                                                            ------------
                    Total liabilities                                                                         14,574,555
                                                                                                            ------------

Preferred Shares:   Preferred Shares, at redemption value, par value $.05 per share
                    (1,600 Series A shares and 1,920 Series B shares of AMPS* issued and
                    outstanding at $25,000 per share liquidation preference)                                  88,000,000
                                                                                                            ------------

Net Assets          Net assets applicable to Common Shares                                                  $175,720,001
Applicable                                                                                                  ============
To Common
Shares:

Analysis of         Common Shares, par value $.10 per share (11,454,697 shares
Net Assets          issued and outstanding)                                                                 $  1,145,470
Applicable to       Paid-in capital in excess of par                                                         169,815,325
Common              Undistributed investment income--net                                   $  1,619,331
Shares:             Accumulated realized capital losses on investments--net                 (13,480,075)
                    Unrealized appreciation on investments--net                              16,619,950
                                                                                           ------------
                    Total accumulated earnings--net                                                            4,759,206
                                                                                                            ------------
                    Total--Equivalent to $15.34 net asset value per Common Share
                    (market price--$14.37)                                                                  $175,720,001
                                                                                                            ============

                   *Auction Market Preferred Shares.

                    See Notes to Financial Statements.
</TABLE>


MuniYield Pennsylvania Insured Fund, October 31, 2002

<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
                    For the Year Ended October 31, 2002
<S>                 <S>                                                                    <C>              <C>
Investment          Interest                                                                                $ 14,497,284
Income:

Expenses:           Investment advisory fees                                               $  1,300,156
                    Commission fees                                                             223,293
                    Accounting services                                                         105,678
                    Professional fees                                                            84,070
                    Transfer agent fees                                                          64,920
                    Trustees' fees and expenses                                                  30,837
                    Listing fees                                                                 28,293
                    Printing and shareholder reports                                             27,949
                    Custodian fees                                                               14,191
                    Pricing fees                                                                 11,260
                    Other                                                                        42,107
                                                                                           ------------
                    Total expenses                                                                             1,932,754
                                                                                                            ------------
                    Investment income--net                                                                    12,564,530
                                                                                                            ------------

Realized &          Realized gain on investments--net                                                          1,899,835
Unrealized          Change in unrealized appreciation/depreciation on
Gain (Loss) on      investments--net                                                                           (355,282)
Investments--Net:                                                                                           ------------
                    Total realized and unrealized gain on investments--net                                     1,544,553
                                                                                                            ------------

Dividends to        Investment income--net                                                                   (1,205,808)
Preferred                                                                                                   ------------
Shareholders:       Net Increase in Net Assets Resulting from Operations                                    $ 12,903,275
                                                                                                            ============

                    See Notes to Financial Statements.
</TABLE>


<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
                                                                                               For the Year Ended
                                                                                                  October 31,
                    Increase (Decrease) in Net Assets:                                         2002             2001++
<S>                 <S>                                                                    <C>              <C>
Operations:         Investment income--net                                                 $ 12,564,530     $ 12,295,597
                    Realized gain on investments--net                                         1,899,835        2,247,789
                    Change in unrealized appreciation/depreciation on
                    investments--net                                                          (355,282)        9,537,502
                    Dividends to Preferred Shareholders                                     (1,205,808)      (2,736,474)
                                                                                           ------------     ------------
                    Net increase in net assets resulting from operations                     12,903,275       21,344,414
                                                                                           ------------     ------------

Dividends to        Investment income--net                                                 (11,158,516)      (9,531,535)
Common                                                                                     ------------     ------------
Shareholders:       Net decrease in net assets resulting from dividends to Common
                    Shareholders                                                           (11,158,516)      (9,531,535)
                                                                                           ------------     ------------

Common Share        Value of shares issued to Common Shareholders in reinvestment of
Transactions:       dividends                                                                   310,258               --
                                                                                           ------------     ------------

Net Assets          Total increase in net assets applicable to Common Shares                  2,055,017       11,812,879
Applicable          Beginning of year                                                       173,664,984      161,852,105
To Common Shares:                                                                          ------------     ------------
                    End of year*                                                           $175,720,001     $173,664,984
                                                                                           ============     ============

                    *Undistributed investment income--net                                  $  1,619,331     $  1,288,949
                                                                                           ============     ============

++Certain prior year amounts have been reclassified to conform to
current year presentation.

See Notes to Financial Statements.
</TABLE>


MuniYield Pennsylvania Insured Fund, October 31, 2002


<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
                                                                              For the Year Ended October 31,
Increase (Decrease) in Net Asset Value:                            2002         2001       2000         1999           1998
<S>                 <S>                                         <C>        <C>          <C>          <C>          <C>
Per Share           Net asset value, beginning of year          $   15.19  $   14.16    $   13.62    $   16.01    $   15.86
Operating                                                       ---------  ---------    ---------    ---------    ---------
Performance:++++    Investment income--net                           1.11       1.07          .99         1.05         1.12
                    Realized and unrealized gain (loss) on
                    investments--net                                  .13       1.03          .65       (1.87)          .46
                    Dividends and distributions to Preferred
                    Shareholders:
                      Investment income--net                        (.11)      (.24)        (.30)        (.19)        (.18)
                      Realized gain on investments--net                --         --           --        (.03)        (.10)
                      In excess of realized gain on
                      investments--net                                 --         --           --        (.03)           --
                                                                ---------  ---------    ---------    ---------    ---------
                    Total from investment operations                 1.13       1.86         1.34       (1.07)         1.30
                                                                ---------  ---------    ---------    ---------    ---------
                    Less dividends and distributions to
                    Common Shareholders:
                      Investment income--net                        (.98)      (.83)        (.80)        (.87)        (.88)
                      Realized gain on investments--net                --         --           --        (.25)        (.27)
                      In excess of realized gain on
                      investments--net                                 --         --           --        (.20)           --
                                                                ---------  ---------    ---------    ---------    ---------
                    Total dividends and distributions to
                    Common Shareholders                             (.98)      (.83)        (.80)       (1.32)       (1.15)
                                                                ---------  ---------    ---------    ---------    ---------
                    Net asset value, end of year                $   15.34  $   15.19    $   14.16    $   13.62    $   16.01
                                                                =========  =========    =========    =========    =========
                    Market price per share, end of year         $   14.37  $   14.96    $   11.75    $   12.25    $   16.50
                                                                =========  =========    =========    =========    =========

Total Investment    Based on market price per share                 2.57%     35.32%        2.46%     (18.98%)       19.82%
Return:*                                                        =========  =========    =========    =========    =========
                    Based on net asset value per share              7.84%     14.02%       11.06%      (7.16%)        8.58%
                                                                =========  =========    =========    =========    =========

Ratios Based on     Total expenses, excluding reorganization
Average             expenses**                                      1.12%      1.16%        1.18%        1.15%        1.11%
Net Assets of                                                   =========  =========    =========    =========    =========
Common Shares:      Total expenses**                                1.12%      1.16%        1.46%        1.15%        1.11%
                                                                =========  =========    =========    =========    =========
                    Total investment income--net**                  7.30%      7.28%        7.58%        7.00%        7.01%
                                                                =========  =========    =========    =========    =========
                    Amount of dividends to Preferred
                    Shareholders                                     .70%      1.62%        2.21%        1.24%        1.15%
                                                                =========  =========    =========    =========    =========
                    Investment income--net, to Common
                    Shareholders                                    6.60%      5.66%        5.37%        5.76%        5.86%
                                                                =========  =========    =========    =========    =========

Ratios Based on     Total expenses, excluding reorganization
Average Net         expenses                                         .74%       .76%         .76%         .79%         .77%
Assets of                                                       =========  =========    =========    =========    =========
Common &            Total expenses                                   .74%       .76%         .94%         .79%         .77%
Preferred                                                       =========  =========    =========    =========    =========
Shares:**           Total investment income--net                    4.83%      4.78%        4.89%        4.82%        4.90%
                                                                =========  =========    =========    =========    =========

Ratios Based on     Dividends to Preferred Shareholders             1.37%      3.11%        4.01%        2.73%        2.62%
Average Net                                                     =========  =========    =========    =========    =========
Assets of
Preferred Shares:

Supplemental        Net assets applicable to Common Shares,
Data:               end of year (in thousands)                  $ 175,720  $ 173,665    $ 161,852    $  80,246    $  92,767
                                                                =========  =========    =========    =========    =========
                    Preferred Shares outstanding, end of
                    year (in thousands)                         $  88,000  $  88,000    $  88,000    $  40,000    $  40,000
                                                                =========  =========    =========    =========    =========
                    Portfolio turnover                             51.37%     69.58%       37.77%       53.28%       60.52%
                                                                =========  =========    =========    =========    =========

Leverage:           Asset coverage per $1,000                   $   2,997  $   2,973    $   2,839    $   3,006    $   3,319
Dividends Per                                                   =========  =========    =========    =========    =========
Share On            Series A--Investment income--net            $     338  $     781    $     986    $     681    $     655
Preferred                                                       =========  =========    =========    =========    =========
Shares              Series B--Investment income--net            $     346  $     774    $     753           --           --
Outstanding:++                                                  =========  =========    =========    =========    =========


*Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales charges.
**Do not reflect the effect of dividends to Preferred Shareholders.
++The Fund's Preferred Shares were issued on November 30, 1992
(Series A) and February 7, 2000 (Series B).
++++Certain prior year amounts have been reclassified to conform to
current year presentation.


See Notes to Financial Statements.
</TABLE>


NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies:
MuniYield Pennsylvania Insured Fund (the "Fund") is registered under
the Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted
in the United States of America, which may require the use of
management accruals and estimates. The Fund determines and makes
available for publication the net asset value of its Common Shares
on a weekly basis. The Fund's Common Shares are listed on the New
York Stock Exchange under the symbol MPA. The following is a summary
of significant accounting policies followed by the Fund.

(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent
bid price or yield equivalent as obtained by the Fund's pricing
service from dealers that make markets in such securities. Financial
futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of
options traded in the over-the-counter market, valuation is the last
asked price (options written) or the last bid price (options
purchased). Securities with remaining maturities of sixty days or
less are valued at amortized cost, which approximates market value.
Securities and assets for which market quotations are not readily
available are valued at their fair value as determined in good faith
by or under the direction of the Board of Trustees of the Fund,
including valuations furnished by a pricing service retained by the
Fund, which may utilize a matrix system for valuations. The
procedures of the pricing service and its valuations are reviewed by
the officers of the Fund under the general supervision of the Board
of Trustees.

(b) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.

* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.



MuniYield Pennsylvania Insured Fund, October 31, 2002


NOTES TO FINANCIAL STATEMENTS (concluded)


* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.

When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).

Written and purchased options are non-income producing investments.

(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.

(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Realized gains and losses on security
transactions are determined on the identified cost basis. Interest
income is recognized on the accrual basis. As required, effective
November 1, 2001, the Fund has adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began
amortizing all premiums and discounts on debt securities. The
cumulative effect of this accounting change had no impact on total
net assets of the Fund, but resulted in a $93,920 increase in cost
of securities (which in return results in a corresponding $93,920
decrease in net unrealized appreciation and a corresponding $93,920
increase in undistributed net investment income), based on
securities held by the Fund as of October 31, 2001.

The effect of this change for the year ended October 31, 2002 was to
increase net investment income by $32,917, decrease net unrealized
appreciation by $107,216 and decrease net realized capital gains by
$19,621. The statement of changes in net assets and financial
highlights for prior periods have not been restated to reflect this
change in presentation.

(e) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.

(f) Change in financial statement classification for Auction Market
Preferred Shares ("AMPS")--In accordance with the provisions of the
Financial Accounting Standards Board's Emerging Issues Task Force D-
98 ("EITF D-98"), "Classification and Measurement of Redeemable
Securities," effective for the current period, the Fund has
reclassified its AMPS outside of permanent equity in the Net Assets
section of the Statement of Net Assets. In addition, dividends to
Preferred Shareholders are now classified as a component of the "Net
Increase in Net Assets Resulting from Operations" on the Statements
of Operations and Changes in Net Assets and as a component of the
"Total from investment operations" in the Financial Highlights.
Prior year amounts presented have been reclassified to conform to
this period's presentation. The application of EITF D-98 related
entirely to presentation and had no impact on net asset value or the
allocation of net investment income or net realized capital gains or
losses to Common Shareholders.

(g) Reclassification--Accounting principles generally accepted in
the United States of America require that certain components of net
assets be adjusted to reflect permanent differences between
financial and tax reporting. Accordingly, the current year's
permanent book/tax differences of $36,257 have been reclassified
between accumulated net realized capital losses and undistributed
net investment income and $523,582 has been reclassified between
paid-in capital in excess of par and accumulated net realized
capital losses. These reclassifications have no effect on net assets
or net asset value per share.


2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect, wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.

FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of .50% of
the Fund's average weekly net assets, including proceeds from the
issuance of Preferred Shares.

For the year ended October 31, 2002, the Fund reimbursed FAM $10,489
for certain accounting services.

Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, and/or ML & Co.

3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 2002 were $130,063,828 and
$130,831,082, respectively.

Net realized gains (losses) for the year ended October 31, 2002 and
net unrealized gains (losses) as of October 31, 2002 were as
follows:


                                     Realized        Unrealized
                                      Gains            Gains
                                     (Losses)         (Losses)

Long-term investments             $  2,118,779     $ 16,903,152
Financial futures contracts          (218,944)        (283,202)
                                  ------------     ------------
Total                             $  1,899,835     $ 16,619,950
                                  ============     ============



As of October 31, 2002, net unrealized appreciation for Federal
income tax purposes aggregated $16,956,742, of which $17,057,109
related to appreciated securities and $100,367 related to
depreciated securities. The aggregate cost of investments at October
31, 2002 for Federal income tax purposes was $241,771,123.

4. Share Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued
shares of beneficial interest without approval of the holders of
Common Shares.

Common Shares
Shares issued and outstanding during the year ended October 31, 2002
increased by 20,665 as a result of dividend reinvestment and during
the year ended October 31, 2001 remained constant.

Preferred Shares
AMPS are redeemable Preferred Shares of the Fund, with a par value
of $.05 per share and a liquidation preference of $25,000 per share,
plus accrued and unpaid dividends, that entitle their holders to
receive cash dividends at an annual rate that may vary for the
successive dividend periods. The yields in effect at October 31,
2002 were 1.0% for Series A and 1.60% for Series B.

Shares issued and outstanding during the years ended October 31,
2002 and October 31, 2001 remained constant.

The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from .25% to .375%,
calculated on the proceeds of each auction. For the year ended
October 31, 2002, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, an affiliate of FAM, earned $117,607 as commissions.

5. Distributions to Shareholders:
On November 7, 2002, a tax-exempt income dividend of $.082000 was
declared. The dividend was paid on November 27, 2002, to
shareholders of record on November 14, 2002.

The tax character of distributions paid during the fiscal years
ended October 31, 2002 and October 31, 2001 was as follows:


                                   10/31/2002       10/31/2001
Distributions paid from:
   Tax-exempt income            $   12,364,324   $   12,268,009
                                --------------   --------------
Total distributions             $   12,364,324   $   12,268,009
                                ==============   ==============


As of October 31, 2002, the components of accumulated earnings on a
tax basis were as follows:

Undistributed tax-exempt income--net              $   1,512,115
Undistributed long-term capital gains--net                   --
                                                  -------------
Total undistributed earnings--net                     1,512,115
Capital loss carryforward                         (11,958,453)*
Unrealized gains--net                              15,205,544**
                                                  -------------
Total accumulated earnings--net                   $   4,759,206
                                                  =============


*On October 31, 2002, the Fund had a net capital loss carryforward
of $11,958,453, of which $953,847 expires in 2003, $1,637,492
expires in 2006, $1,782,024 expires in 2007 and $7,585,090 expires
in 2008. This amount will be available to offset like amounts of any
future taxable gains.
**The difference between book-basis and tax-basis net unrealized
gains is attributable primarily to the tax deferral of losses on
wash sales, the tax deferral of losses on straddles, the realization
for tax purposes of unrealized losses on certain futures contracts
and the difference between book and tax amortization methods for
premiums and discounts on fixed income securities.



MuniYield Pennsylvania Insured Fund, October 31, 2002


INDEPENDENT AUDITORS' REPORT

The Board of Trustees and Shareholders,
MuniYield Pennsylvania Insured Fund:

We have audited the accompanying statement of net assets, including
the schedule of investments, of MuniYield Pennsylvania Insured Fund
as of October 31, 2002, the related statement of operations for the
year then ended and changes in net assets for each of the years in
the two-year period then ended and the financial highlights for each
of the years presented. These financial statements and the financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.

We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights.
Our procedures included confirmation of securities owned at October
31, 2002 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
MuniYield Pennsylvania Insured Fund as of October 31, 2002, the
results of its operations, the changes in its net assets and the
financial highlights for the respective stated periods in conformity
with accounting principles generally accepted in the United States
of America.

Deloitte & Touche LLP
Princeton, New Jersey
December 6, 2002




IMPORTANT TAX INFORMATION (unaudited)

All of the net investment income distributions paid by MuniYield
Pennsylvania Insured Fund during its taxable year ended October 31,
2002 qualify as tax-exempt interest dividends for Federal income tax
purposes.

Please retain this information for your records.



MANAGED DIVIDEND POLICY

The Fund's dividend policy is to distribute all or a portion of its
net investment income to its shareholders on a monthly basis. In
order to provide shareholders with a more consistent yield to the
current trading price of shares of Common Shares of the Fund, the
Fund may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in
any month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result,
the dividends paid by the Fund for any particular month may be more
or less than the amount of net investment income earned by the Fund
during such month. The Fund's current accumulated but undistributed
net investment income, if any, is disclosed in the Statement of Net
Assets, which comprises part of the Financial Information included
in this report.


MuniYield Pennsylvania Insured Fund, October 31, 2002

<TABLE>
OFFICERS AND TRUSTEES
<CAPTION>
                                                                                                         Number of        Other
                                                                                                       Portfolios in    Director-
                           Position(s)     Length                                                       Fund Complex      ships
                               Held       of Time                                                       Overseen by      Held by
Name      Address & Age     with Fund      Served     Principal Occupation(s) During Past 5 Years         Trustee        Trustee

Interested Trustee
<S>       <S>                <S>           <S>          <S>                                             <S>                <S>
Terry K.  P.O. Box 9011      President     1999 to      Chairman, Americas Region since 2001 and          117 Funds        None
Glenn*    Princeton, NJ      and           present      Executive Vice President since 1983 of          162 Portfolios
          08543-9011         Trustee       and 1992     Fund Asset Management, L.P. ("FAM")
          Age: 62                          to present   and Merrill Lynch Investment Managers,
                                                        L.P. ("MLIM"); President of Merrill
                                                        Lynch Mutual Funds since 1999; President
                                                        of FAM Distributors, Inc. ("FAMD") since 1986
                                                        and Director thereof since 1991; Executive Vice
                                                        President and Director of Princeton Services, Inc.
                                                        ("Princeton Services") since 1993; President of
                                                        Princeton Administrators, L.P. since 1988; Director
                                                        of Financial Data Services, Inc. since 1985.


          *Mr. Glenn is a director, trustee or member of an advisory board of
          certain other investment companies for which FAM or MLIM acts as
          investment adviser. Mr. Glenn is an "interested person," as
          described in the Investment Company Act, of the Fund based on his
          positions as Chairman (Americas Region) and Executive Vice President
          of FAM and MLIM; President of FAMD; Executive Vice President of
          Princeton Services; and President of Princeton Administrators, L.P.
          The Trustee's term is unlimited. Trustees serve until their
          resignation, removal or death, or until December 31 of the year in
          which they turn 72. As Fund President, Mr. Glenn serves at the
          pleasure of the Board of Trustees.
</TABLE>


<TABLE>
<CAPTION>
                                                                                                         Number of        Other
                                                                                                       Portfolios in    Director-
                           Position(s)     Length                                                       Fund Complex      ships
                               Held       of Time                                                       Overseen by      Held by
Name      Address & Age     with Fund      Served     Principal Occupation(s) During Past 5 Years         Trustee        Trustee

Independent Trustees
<S>       <S>                <S>           <S>          <S>                                             <S>                <S>
Donald W. P.O. Box 9011      Trustee       2002 to      General Partner of The Burton Partnership,        23 Funds      ITC Delta-
Burton    Princeton, NJ                    present      Limited Partnership since 1979; Managing       34 Portfolios    Com, Inc.;
          08543-9011                                    General Partner of The South Atlantic Venture                  ITC Holding
          Age: 58                                       Funds since 1983; Member of the Investment                       Company,
                                                        Advisory Committee of the Florida State Board                     Inc.;
                                                        of Administration since 2001.                                    Knology,
                                                                                                                       Inc.; Main-
                                                                                                                         Bancorp,
                                                                                                                        N.A.; Pri-
                                                                                                                       Care, Inc.;
                                                                                                                         Sumbion,
                                                                                                                           Inc.

M. Colyer P.O. Box 9011      Trustee       1992 to      James R. Williston Professor of Investment          23 Funds    Cambridge
Crum      Princeton, NJ                    present      Management Emeritus, Harvard Business            34 Portfolios   Bancorp
          08543-9011                                    School since 1996.
          Age: 70

Laurie    P.O. Box 9011      Trustee       1999 to      Professor of Finance and Economics, Graduate        23 Funds       None
Simon     Princeton, NJ                    present      School of Business, Columbia University since    34 Portfolios
Hodrick   08543-9011                                    1998; Associate Professor of Finance and
          Age: 40                                       Economics, Graduate School of Business,
                                                        Columbia University from 1996 to 1998.

J. Thomas P.O. Box 9011      Trustee       1992 to      Managing Partner of the Witt Touchton Company     23 Funds         TECO
Touchton  Princeton, NJ                    present      since 1972.                                    34 Portfolios   Energy, Inc.
          08543-9011
          Age: 63

Fred G.   P.O. Box 9011      Trustee       1998 to      Managing Director of FGW Associates since 1997;     23 Funds     Watson
Weiss     Princeton, NJ                    present      Vice President, Planning, Investment and         34 Portfolios  Pharmaceu-
          08543-9011                                    Development of Warner Lambert Co. from 1979                    ticals, Inc.
          Age: 61                                       to 1997.


          *The Trustee's term is unlimited. Trustees serve until their
          resignation, removal or death, or until December 31 of the year in
          which they turn 72.
</TABLE>


<TABLE>
<CAPTION>
                           Position(s)    Length
                               Held       of Time
Name      Address & Age     with Fund      Served     Principal Occupation(s) During Past 5 Years

Fund Officers
<S>       <S>                <S>           <S>          <S>
Donald C. P.O. Box 9011      Vice          1993 to      First Vice President of FAM and MLIM since 1997 and Treasurer thereof
Burke     Princeton, NJ      President     present      since 1999; Senior Vice President and Treasurer of Princeton
          08543-9011         and           and          Services since 1999; Vice President of FAMD since 1999; Vice President
          A ge: 42           Treasurer     1999 to      of FAM and MLIM from 1990 to 1997; Director of Taxation of MLIM
                                           present      since 1990.

Kenneth   P.O. Box 9011      Senior Vice   2002 to      Managing Director of FAM and MLIM since 1997.
A. Jacob  Princeton, NJ      President     present
          08543-9011
          Age: 51

John M.   P.O. Box 9011      Senior Vice   2002 to      Managing Director of FAM and MLIM since 2000 and First Vice
Loffredo  Princeton, NJ      President     present      President since 1997.
          08543-9011
          Age: 38

William   P.O. Box 9011      Vice          1992 to      Vice President of MLIM since 1992.
R. Bock   Princeton, NJ      President     present
          08543-9011         and
          Age: 66            Portfolio
                             Manager

Brian D.  P.O. Box 9011      Secretary     2002 to      Vice President of MLIM since 2002; Attorney with Reed Smith from
Stewart   Princeton, NJ                    present      2001 to 2002 and Saul Ewing from 1999 to 2001.
          08543-9011
          Age: 33

          *Officers of the Fund serve at the pleasure of the Board of
          Trustees.
</TABLE>



Custodian
State Street Bank and
Trust Company
One Heritage Drive
North Quincy, MA 02171

Transfer Agent
Common Shares:
EquiServe Trust Company, I.A.
P.O. Box 43011
Providence, RI 02940-3011

Preferred Shares:
The Bank of New York
100 Church Street
New York, NY 10286


NYSE Symbol
MPA









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