<PAGE>1
Filed Pursuant to
Rule 424(b)(3)
File No. 33-58989
PRICING SUPPLEMENT NO. 21 DATED
July 16, 1996 TO PROSPECTUS
DATED June 15, 1995 AND PROSPECTUS
SUPPLEMENT DATED June 15, 1995
McDONNELL DOUGLAS FINANCE CORPORATION
Series X Medium-Term Notes
Due Nine Months or More From Date of Issue
Except as set forth herein, the Series X Medium-Term Notes offered hereby
(the "Notes") have such terms as are described in the accompanying Prospectus
dated June 15, 1995, as amended and supplemented by the Prospectus Supplement
dated June 15, 1995 (the "Prospectus").
Aggregate Principal Amount: $20,000,000
Original Issue Date
(Settlement Date): July 19, 1996
Stated Maturity Date: July 1, 1998
Interest Rate: 6.50%
Interest Payment Dates: March 15 and September 15
commencing September 15, 1996
Type of Notes Issued: [X] Senior Notes [X] Fixed Rate Notes
[ ] Subordinated Notes [ ] Floating Rate Notes
Optional Redemption: [ ] Yes
[X] No
Form of Notes Issued: [X] Book-Entry Notes
[ ] Certificated Notes
CUSIP Number: 58017DEE6
PURCHASE AS PRINCIPAL
This Pricing Supplement relates to $20,000,000 aggregate principal amount
of Notes that are being purchased, as principal, by Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") for
resale to one or more investors at varying prices related to prevailing market
conditions at the time or times of resale as determined by Merrill Lynch. Net
proceeds payable by Merrill Lynch to McDonnell Douglas Finance Corporation
(the "Company") will be 99.929% of the aggregate principal amount of the
Notes, or $19,985,800 before deduction of expenses payable by the Company.
In connection with the sale of the Notes, Merrill Lynch may be deemed to have
received compensation from the Company in the form of underwriting discounts
in the amount of .071% or $14,200.