AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 12, 2000
REGISTRATION NOS. 2-89536, 2-94915, 33-02813, 33-13386, 33-21320, 33-28038,
33-34403, 33-39606, 33-47078.
33-49519, 33-53085 AND 333-76661
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------------------
POST-EFFECTIVE AMENDMENT NO. 16
TO
FORM S-6
-------------------------------------
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
-------------------------------------
A. EXACT NAME OF TRUST:
THE MERRILL LYNCH FUND OF
STRIPPED ("ZERO") U.S. TREASURY SECURITIES,
SERIES A, B, C, D, E, F, G, H, I, J, K AND L
(A UNIT INVESTMENT TRUST)
B. NAMES OF DEPOSITOR:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
C. COMPLETE ADDRESSES OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES:
<TABLE>
<S> <C> <C>
MERRILL LYNCH, PIERCE,
FENNER & SMITH
INCORPORATED
DEFINED ASSET FUNDS
POST OFFICE BOX 9051
PRINCETON, NJ 08543-9051
</TABLE>
D. NAMES AND COMPLETE ADDRESSES OF AGENT FOR SERVICE:
<TABLE>
<S> <C> <C>
COPIES TO:
TERESA KONCICK, ESQ.
P.O. BOX 9051
PRINCETON, N.J.
08543-9051
PIERRE DE SAINT PHALLE,
ESQ.
450 LEXINGTON AVENUE
NEW YORK, N.Y. 10017
</TABLE>
Check box if it is proposed that this filing will become effective on May 1,
2000 pursuant to paragraph (b) of Rule 485. /X/
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
DEFINED ASSET FUNDS--REGISTERED TRADEMARK--
----------------------------------------------------
THE MERRILL LYNCH FUND OF STRIPPED
("ZERO") U.S. TREASURY SECURITIES
SERIES A-L
(UNIT INVESTMENT TRUSTS)
- PORTFOLIO OF "ZERO COUPON" U.S. TREASURY
SECURITIES
- DESIGNED FOR SAFETY OF CAPITAL AND HIGH YIELD TO
MATURITY
- UNITS SOLD TO SEPARATE ACCOUNTS TO FUND BENEFITS
UNDER VARIABLE LIFE INSURANCE POLICIES
-----------------------------------------------------
The Securities and Exchange Commission has not
SPONSOR: approved or disapproved these Securities or passed
MERRILL LYNCH, upon the adequacy of this prospectus. Any
PIERCE, FENNER & SMITH representation to the contrary is a criminal offense.
INCORPORATED Prospectus dated April 28, 2000.
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
CONTENTS
PAGE
---
Risk/Return Summary.................. 3
What You Can Expect From Your
Investment......................... 6
Distributions at Maturity.......... 6
Records and Reports................ 6
The Risk You Face.................... 6
Price Risk......................... 6
Selling or Exchanging Units.......... 6
Sponsor's Secondary Market......... 6
Selling Units to the Trustee....... 6
How The Fund Works................... 7
Pricing............................ 7
Evaluations........................ 7
Income............................. 7
Expenses........................... 7
Portfolio Changes.................. 7
Termination........................ 8
Certificates....................... 8
Trust Indenture.................... 8
Legal Opinion...................... 9
Auditors........................... 9
Sponsor............................ 9
Trustee............................ 9
Sponsors's Profits................. 9
Code of Ethics..................... 10
Year 2000 Issues................... 10
Taxes................................ 10
Supplemental Information............. 10
Financial Statements................. D-1
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY
<TABLE>
<C> <S>
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks safety of capital and
high yield to maturity by investing
primarily in fixed portfolios of
Stripped U.S. Treasury securities.
Units are offered only to separate
accounts to fund the benefits under
variable insurance policies issued by
Monarch Life Insurance Company, Merrill
Lynch Life Insurance Company and ML Life
Insurance Company of New York. These
Accounts invest in units in accordance
with allocation instructions received by
policyowners. Accordingly, the interests
of a policyowner in the units are
subject to the terms of the insurance
policy.
The rights of the Accounts as holders of
units should be distinguished from the
rights of the policyowners. Please
review the accompanying prospectus for
the insurance policies, which describes
the rights of and risks to policyowners.
The term "you" in this Prospectus refers
to the Accounts (or the Sponsor if it
holds units).
2. WHAT ARE STRIPPED U.S. TREASURY
SECURITIES?
These are debt obligations directly
issued by the U.S. Treasury. They do not
make any periodic payments of interest
before maturity and are priced at a deep
discount from face amount. They pay a
fixed amount of principal at maturity.
3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
- The Fund consists of 12 separate series,
each containing one or more unit
investment trusts. Each trust is
designated by the year in which its
Stripped Treasury securities mature.
Each trust also contains an interest-
bearing U.S. Treasury note to provide
income to pay the trust's expenses.
- Unlike a mutual fund, the portfolios of
these unit investment trusts are not
managed.
- For each unit purchased, you will
receive a total distribution of
approximately $1,000 for units held
until maturity of the underlying
securities in the trust.
- The securities in the Fund BUT NOT THE
FUND OR THE UNITS are backed by the full
faith and credit of the United States.
- 100% of the trusts consist of U.S.
Treasury securities.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY. THIS CAN HAPPEN FOR
VARIOUS REASONS, INCLUDING:
- Rising interest rates can reduce the
value of the units.
- Since each portfolio is priced at a deep
discount from face amount, unit prices
may be subject to greater fluctuations
in response to changing interest rates.
This risk is greater than on debt
securities that pay interest currently
and increases when the time to maturity
is longer.
- If units are sold before the underlying
securities mature, the value of your
units may decrease, because market
prices of the securities before maturity
will vary with changes in interest rates
and other factors.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want safety of capital with
a locked-in yield to maturity. You
benefit from a portfolio of U.S.
government securities with fixed returns
and a stated maturity.
The Fund is NOT appropriate for you if
you want current income or a speculative
investment that changes to take
advantage of market movements.
6. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not
managed and securities are not sold
because of market changes. To lock in
the yield on the purchase date, a trust
holds securities to maturity unless
sales are needed to raise cash for
redemptions.
</TABLE>
3
<PAGE>
<TABLE>
<C> <S>
7. HOW DO I BUY UNITS?
Each Account buys units from the
Sponsor. There is no minimum investment.
Unit price is based on the net asset
value of the trust plus the applicable
transaction charge shown below. Any
principal cash, and any net accrued but
undistributed interest on the unit is
added to the unit price. An independent
evaluator prices the securities at their
offer side values at 3:30 p.m. Eastern
time each business day. Unit price
varies daily with changes in the prices
of the securities in the trust.
8. HOW DO I SELL UNITS?
An Account may sell units at any time to
the Sponsor or the Trustee for the net
asset value determined at the close of
business on the date of sale. You will
not pay any fee when you sell your
units.
9. HOW ARE DISTRIBUTIONS MADE AND TAXED?
Stripped Treasury securities do not pay
interest until they mature;
consequently, you should not expect any
distributions of interest income. When
the Stripped Treasury security matures,
the proceeds will be distributed to the
Accounts. A distribution will be made in
cash two business days following the
maturity of the Stripped Treasury
security.
The Accounts (not the policyowners) have
significant amounts of income attributed
to them annually as original issue
discount is accrued on the Stripped
Treasury securities.
10. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses
the Accounts may pay, directly or
indirectly, when they invest in the
Fund.
TRANSACTION CHARGES
The insurance company initially pays a
transaction charge to the Sponsor on the
units sold to an Account. The insurance
company intends to recover this amount
through an asset charge. See the
accompanying prospectus for the
insurance policies for futher
information. The transaction charge is
based on the remaining years to maturity
of the Stripped Treasury security:
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
OFFER
REMAINING YEARS TO MATURITY PRICE
--------------------------- ----------
<C> <S> <C>
Less than 2 years............... 0.25%
At least 2 years but less than 3
years........................... 0.50
At least 3 years but less than 5
years........................... 0.75
At least 5 years but less than 8
years........................... 1.00
At least 8 years but less than
13 years........................ 1.50
At least 13 years but less than
18 years........................ 1.75
18 years or more................ 2.00
</TABLE>
4
<PAGE>
UNIT PRICE (as of December 31, 1999)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SERIES A SERIES B SERIES C SERIES D SERIES E SERIES F SERIES G
--------- --------------- --------- --------- --------- --------- ---------------
2003 2001 2005 2006 2007 2008 2009 2000 2010
TRUST TRUST TRUST TRUST TRUST TRUST TRUST TRUST TRUST
--------- ------ ------ --------- --------- --------- --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value (based on
offer side
evaluation of underlying
Securities) $797.46 $939.07 $725.98 $691.50 $643.95 $588.33 $549.82 $996.11 $508.37
Plus transaction charge $ 6.03 $ 2.36 $ 7.33 $ 6.98 $ 6.50 $ 8.96 $ 8.37 $ 2.50 $ 7.74
------ ------ ------ ------ ------ ------ ------ ------ ------
Unit price per 1,000 Units $803.49 $941.43 $733.31 $698.48 $650.45 $597.29 $558.19 $998.61 $516.11
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SERIES H SERIES I SERIES J SERIES K SERIES L
--------- --------- --------- --------------------- ---------
2011 2002 2013 2004 2014 2019
TRUST TRUST TRUST TRUST TRUST TRUST
--------- --------- --------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value (based on
offer side
evaluation of
underlying Securities) $480.21 $879.06 $415.49 $769.33 $382.99 $276.58
Plus transaction charge $ 7.31 $ 4.42 $ 7.40 $ 5.82 $ 6.82 $ 5.64
------- ------- ------- ------- ------- -------
Unit price per 1,000
Units $487.52 $883.48 $422.89 $775.15 $389.81 $282.22
</TABLE>
- --------------------------------------------------------------------------------
TRUSTEE'S ANNUAL OPERATING FEE AND EXPENSES PER $1,000 FACE AMOUNT OF UNDERLYING
SECURITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SERIES A SERIES B SERIES C SERIES D SERIES E SERIES F SERIES G
--------- -------------- --------- --------- --------- --------- --------------
2003 2001 2005 2006 2007 2008 2009 2000 2010
TRUST TRUST TRUST TRUST TRUST TRUST TRUST TRUST TRUST
--------- ------ ------ --------- --------- --------- --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.35 $ 0.35 $ 0.31 $ 0.33 $ 0.36 $ 0.36 $ 0.35 $ 0.37
$ 0.35
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SERIES H SERIES I SERIES J SERIES K SERIES L
--------- --------- --------- ------------------------ ---------
2011 2002 2013 2004 2014 2019
TRUST TRUST TRUST TRUST TRUST TRUST
--------- --------- --------- ----- ----- ---------
<S> <C> <C> <C> <C> <C>
$0.36 $0.36 $0.32 $0.35 $0.35 $0.34
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
DISTRIBUTIONS
Each trust normally holds any net income and principal received until the
Stripped Treasury security matures. However, the Trustee may distribute any
available balances in the Income and Capital Accounts once a year, as instructed
by the Sponsor.
RECORDS AND REPORTS
The Accounts receive:
- - with any distribution, a statement of income and other payments;
- - an annual report on Fund transactions; and
- - annual tax information. THIS ALSO IS SENT TO THE IRS.
You will receive audited financial statements of the Fund once a year.
THE RISK YOU FACE
PRICE RISK
Investing involves risks, including the risk that your investment before
maturity will decline in value if interest rates rise. Generally, the price of
Stripped Treasury securities fluctuates more widely than prices of debt
securities that pay interest currently. Also, securities with longer maturities
will change in value more than securities with shorter maturities. Of course, we
cannot predict how interest rates may change.
SELLING OR EXCHANGING UNITS
SPONSOR'S SECONDARY MARKET
We have agreed to buy back units at their offer side value without any fee or
charge. We may resell the units to an Account or to the Trustee.
SELLING UNITS TO THE TRUSTEE
If we fail to maintain a secondary market, an Account can sell units to the
Trustee at any time at a price based on the lower bid side evaluation of the
securities in the trust. It must deliver instructions to the Trustee (with
coordinated delivery or assignment of any outstanding certificates if issued).
Within seven days after receiving a redemption request in proper form, the
Trustee will transmit the proceeds as directed by the redemption instructions.
An Account may opt to receive securities rather than cash. Contact the Trustee
for additional information.
If the trust does not have cash available to pay for units redeemed, the Sponsor
will select securities to be sold, based on market and credit factors. These
sales could be made at times when the securities would not otherwise be sold and
may result in receiving less than the unit par value and also reduce the size
and diversity of the trust.
Payments for units could be delayed:
- if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
- if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
bonds not reasonably practicable; and
- for any other period permitted by SEC order.
6
<PAGE>
HOW THE FUND WORKS
PRICING
The price of a unit includes interest accrued on the securities, less expenses,
up to, but not including, the settlement date, which is usually the business day
after purchase of the unit.
EVALUATIONS
An independent Evaluator values the securities on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas;
and the following federal holidays: Columbus Day and Veterans Day). Values are
based on current offer prices for the securities or comparable bonds.
INCOME
The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.
EXPENSES
The Trustee is paid semi-annually. It also benefits when it holds cash for a
trust in non-interest bearing accounts. The Trustee may also receive additional
amounts:
- to reimburse the Trustee for the trust's operating expenses;
- for extraordinary services and costs of indemnifying the Trustee and the
Sponsor;
- costs of actions taken to protect a trust and other legal fees and expenses;
- termination expenses and any governmental charges.
The trusts also pay the Evaluator's fees.
The Trustee's and Evaluator's fees may be adjusted for inflation without
investors' approval.
If trust expenses exceed initial estimates, the trust will owe the excess. The
Trustee has a lien on trust assets to secure reimbursement of trust expenses and
may sell bonds if cash is not available.
PORTFOLIO CHANGES
The Sponsor and Trustee are not liable for any default or defect in a security.
Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
securities in the portfolio even if adverse financial circumstances occur.
However, we may sell a security in certain cases if we believe that certain
adverse credit or other conditions exist.
If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which may affect the
composition of the portfolio. Units offered in the secondary market may not
represent the same face amount of securities that they did originally.
We decide whether or not to offer units for sale that we acquire in the
secondary market after reviewing:
7
<PAGE>
- diversity of the portfolio;
- size of the trust relative to its original size;
- level of trust expenses;
- yield to maturity;
- degree to which units may be selling at a premium over par; and
- cost of maintaining a current prospectus.
TERMINATION
Each trust terminates following the stated maturity or sale of the last security
in its portfolio. A trust may also terminate earlier with the consent of
investors holding 51% of the units or if its total assets are less than 40% of
the face amount of securities deposited. We will decide whether to terminate a
trust early based on the same factors used in deciding whether or not to offer
units in the secondary market.
When a trust is about to terminate the Account will receive a notice, and it
will be unable to sell units of the trust after that time. On or shortly before
termination, we will sell any remaining securities, and you will receive your
final distribution. Any security that cannot be sold at a reasonable price may
continue to be held by the Trustee in a liquidating trust pending its final
sale.
You will bear your share of the expenses associated with termination, including
costs in selling securities. This may reduce the amount you receive as your
final distribution.
CERTIFICATES
Certificates for units are issued on request. An Account may transfer
certificates by complying with the requirements for redeeming certificates,
described above. It can replace lost or mutilated certificates by delivering
satisfactory indemnity and paying the associated costs.
TRUST INDENTURE
The Fund is a "unit investment trust" governed by a Trust Indenture, a contract
among the Sponsor, the Trustee and the Evaluator, which sets forth their duties
and obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.
The Sponsor and the Trustee may amend the Indenture without your consent:
- to cure ambiguities;
- to correct or supplement any defective or inconsistent provision;
- to make any amendment required by any governmental agency; or
- to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsor).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in a trust without your written consent.
The Trustee may resign by notifying the Sponsor. The Sponsor may remove the
Trustee without your consent if:
8
<PAGE>
- it fails to perform its duties and the Sponsor determines that its
replacement is in your best interest; or
- it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsor and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsor will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.
If the Sponsor fails to perform its duties or becomes bankrupt the Trustee may:
- remove it and appoint a replacement Sponsor;
- liquidate the trusts; or
- continue to act as Trustee without a Sponsor.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsor and the Evaluator.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsor, has given an opinion that the units are validly
issued.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Financial Statements included in this
Prospectus.
SPONSOR
The Sponsor is:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
The Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer the
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Chase Manhattan Bank, Unit Investment Trust Departament, 4 New York
Plaza--6th Floor, New York, New York 10004, is the Trustee. It is supervised by
the Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System and New York State banking authorities.
SPONSOR'S PROFITS
Upon the sale of units, the Sponsor receives the transaction charge from an
Account (as set out above). The Sponsor also realizes a profit or loss on each
deposit of securities in a trust.
In maintaining a secondary market, the Sponsor will also realize profits or
sustain losses in the amount of any difference between the prices at which it
buys units
9
<PAGE>
and the prices at which it resells or redeems those units.
CODE OF ETHICS
The Fund and the Agent for the Sponsor have each adopted a code of ethics
requiring reporting of personal securities transactions by its employees with
access to information on Fund transactions. Subject to certain conditions, the
codes permit employees to invest in Fund securities for their own accounts. The
codes are designed to prevent fraud, deception and misconduct against the Fund
and to provide reasonable standards of conduct. These codes are on file with the
Commission and you may obtain a copy by contacting the Commission at the address
listed on the back cover of this prospectus.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the "Year
2000 Problem"). To date we are not aware of any major operational difficulties
resulting from the computer system changes necessary to prepare for the Year
2000. However, there can be no assurance that the Year 2000 Problem will not
adversely affect the issuers of the bonds contained in the Portfolio. We cannot
predict whether any impact will be material to any trust as a whole.
TAXES
The following discussion relates only to the Accounts as holders of units, and
not to policyowners. The separate prospectus for the insurance policies,
attached, describes tax consequences to policyowners.
In the opinion of our counsel, under existing law:
The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be considered to own directly your share of each Stripped Treasury
security in the Fund.
The zero coupon bonds will be considered to have been issued at an "original
issue discount" for federal income tax purposes. As a result, you will be
required to include original issue discount in respect of the zero coupon bonds
as it accrues, in accordance with a constant yield method based on a compounding
of interest.
SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the securities that may be in the Fund's portfolio and general information
about the structure and operation of the Fund. The supplemental information is
also available from the SEC.
10
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsor, Trustee and Holders
of The Merrill Lynch Fund of Stripped ("Zero")
U.S. Treasury Securities, Series A (2003 Trust),
Series B (2001 and 2005 Trusts), Series C (2006 Trust),
Series D (2007 Trust), Series E (2008 Trust),
Series F (2009 Trust), Series G (2010 Trust), Series H (2011 Trust),
Series I (2002 Trust), Series J (2013 Trust),
Series K (2004 and 2014 Trusts)and Series L(2019 Trust)(the Funds):
We have audited the accompanying statements of condition of the Funds, including
the portfolios, as of December 31, 1999 and the related statements of operations
and of changes in net assets for the years ended December 31, 1999, 1998 and
1997 (as applicable). These financial statements are the responsibility of the
Trustee. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
December 31, 1999, as shown in such portfolios, were confirmed to us by The
Chase Manhattan Bank, the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the Trustee, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Funds at December 31, 1999
and the results of their operations and changes in their net assets for the
above-stated years in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
February 10, 2000
D - 1
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES A
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2003 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $41,865,327
Other ................................................... 92,891
-----------
Total trust property .......................... 41,958,218
LESS LIABILITY - Other .................................... 3,559
-----------
NET ASSETS (Note 2) ....................................... $41,954,659
===========
UNITS OUTSTANDING ......................................... 52,539,538
===========
UNIT VALUE ................................................ $ .79853
===========
See Notes to Financial Statements.
D - 2
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES A
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2003 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 20,187 $ 22,308 $ 24,902
Accretion of original issue
discount .......................................... 3,456,482 3,487,242 3,628,183
Trustee's fees and expenses ......................... (14,447) (15,733) (16,828)
----------- ----------- -----------
Net investment income ............................... 3,462,222 3,493,817 3,636,257
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold .................... 704,433 732,262 818,013
Unrealized (depreciation) appreciation of
investments ....................................... (4,967,831) 893,998 31,844
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (4,263,398) 1,626,260 849,857
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $ (801,176) $ 5,120,077 $ 4,486,114
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES A
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2003 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 3,462,222 $ 3,493,817 $ 3,636,257
Realized gain on securities sold .................... 704,433 732,262 818,013
Unrealized (depreciation) appreciation of
investments ....................................... (4,967,831) 893,998 31,844
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (801,176) 5,120,077 4,486,114
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 598,839 199,957
Redemptions of units ................................ (6,430,805) (4,447,838) (5,561,092)
----------- ----------- -----------
Net capital share transactions ...................... (5,831,966) (4,447,838) (5,361,135)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (6,633,142) 672,239 (875,021)
NET ASSETS, BEGINNING OF YEAR ......................... 48,587,801 47,915,562 48,790,583
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $41,954,659 $48,587,801 $47,915,562
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .79853 $ .81181 $ .72956
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 52,539,538 59,850,919 65,677,446
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES B
STATEMENTS OF CONDITION
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
2001 TRUST 2005 TRUST
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............... $45,021,276 $20,969,664
Other ...................................... 76,922 24,611
----------- -----------
Total trust property .............. 45,098,198 20,994,275
LESS LIABILITY - Other ....................... 3,506 1,048
----------- -----------
NET ASSETS (Note 2) .......................... $45,094,692 $20,993,227
=========== ===========
UNITS OUTSTANDING ............................ 47,974,296 28,909,581
=========== ===========
UNIT VALUE ................................... $ .93998 $ .72617
=========== ===========
</TABLE>
See Notes to Financial Statements.
D - 5
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES B
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2001 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 17,896 $ 19,477 $ 21,215
Accretion of original issue discount ................ 3,885,779 3,908,822 3,964,020
Trustee's fees and expenses ......................... (13,493) (14,505) (15,315)
----------- ----------- -----------
Net investment income ............................... 3,890,182 3,913,794 3,969,920
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold .................... 205,466 320,464 444,680
Unrealized depreciation of
investments ....................................... (2,681,639) (413,110) (876,128)
----------- ----------- -----------
Realized and unrealized(loss) gain on
investments ....................................... (2,476,173) (92,646) (431,448)
----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ 1,414,009 $ 3,821,148 $ 3,538,472
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 6
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES B
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2005 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 10,941 $ 11,497 $ 12,069
Accretion of original issue discount ................ 1,571,255 1,509,134 1,503,945
Trustee's fees and expenses ......................... (9,886) (10,112) (10,338)
----------- ----------- -----------
Net investment income ............................... 1,572,310 1,510,519 1,505,676
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold .................... 541,792 287,941 202,442
Unrealized (depreciation) appreciation of
investments ....................................... (3,111,597) 911,552 648,748
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (2,569,805) 1,199,493 851,190
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ (997,495) $ 2,710,012 $ 2,356,866
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 7
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES B
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2001 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 3,890,182 $ 3,913,794 $ 3,969,920
Realized gain on securities sold .................... 205,466 320,464 444,680
Unrealized depreciation
of investments .................................... (2,681,639) (413,110) (876,128)
----------- ----------- -----------
Net increase in net assets
resulting from operations ......................... 1,414,009 3,821,148 3,538,472
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 1,022,006 647,129 397,111
Redemptions of units ................................ (6,152,489) (4,102,436) (4,861,241)
----------- ----------- -----------
Net capital share transactions ...................... (5,130,483) (3,455,307) (4,464,130)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (3,716,474) 365,841 (925,658)
NET ASSETS, BEGINNING OF YEAR ......................... 48,811,166 48,445,325 49,370,983
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $45,094,692 $48,811,166 $48,445,325
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .93998 $ .91202 $ .84350
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 47,974,296 53,520,078 57,433,435
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 8
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES B
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2005 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 1,572,310 $ 1,510,519 $ 1,505,676
Realized gain on securities sold .................... 541,792 287,941 202,442
Unrealized (depreciation) appreciation
of investments .................................... (3,111,597) 911,552 648,748
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (997,495) 2,710,012 2,356,866
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 2,239,894 743,426
Redemptions of units ................................ (3,660,496) (1,664,525) (1,854,199)
----------- ----------- -----------
Net capital share transactions ...................... (3,660,496) 575,369 (1,110,773)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (4,657,991) 3,285,381 1,246,093
NET ASSETS, BEGINNING OF YEAR ......................... 25,651,218 22,365,837 21,119,744
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $20,993,227 $25,651,218 $22,365,837
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .72617 $ .75741 $ .67280
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 28,909,581 33,867,164 33,242,884
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 9
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES C
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2006 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 8,189,087
Other ................................................... 8,561
-----------
Total trust property ........................... 8,197,648
LESS LIABILITY - Other .................................... 6,344
-----------
NET ASSETS (Note 2) ....................................... $ 8,191,304
===========
UNITS OUTSTANDING ......................................... 11,853,450
===========
UNIT VALUE ................................................ $ .69105
===========
See Notes to Financial Statements.
D - 10
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES C
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2006 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 3,845 $ 3,561 $ 3,792
Accretion of original issue discount ................ 509,644 466,132 485,166
Trustee's fees and expenses ......................... (3,844) (3,510) (3,683)
----------- ----------- -----------
Net investment income ............................... 509,645 466,183 485,275
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold .................... 27,728 245,706 406,791
Unrealized (depreciation) appreciation
of investments .................................... (1,062,997) 415,809 152,479
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (1,035,269) 661,515 559,270
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ (525,624) $ 1,127,698 $ 1,044,545
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 11
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2006 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 509,645 $ 466,183 $ 485,275
Realized gain on securities sold .................... 27,728 245,706 406,791
Unrealized (depreciation) appreciation
of investments .................................... (1,062,997) 415,809 152,479
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (525,624) 1,127,698 1,044,545
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 1,237,586 245,845
Redemptions of units ................................ (189,073) (697,866) (1,459,989)
----------- ----------- -----------
Net capital share transactions ...................... (189,073) 539,720 (1,214,144)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (714,697) 1,667,418 (169,599)
NET ASSETS, BEGINNING OF YEAR ......................... 8,906,001 7,238,583 7,408,182
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 8,191,304 $ 8,906,001 $ 7,238,583
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .69105 $ .73503 $ .64467
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 11,853,450 12,116,560 11,228,372
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 12
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES D
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2007 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $11,760,274
Other ................................................... 2,796
-----------
Total trust property .......................... 11,763,070
LESS LIABILITY - Other .................................... 1,283
-----------
NET ASSETS (Note 2) ....................................... $11,761,787
===========
UNITS OUTSTANDING ......................................... 18,280,661
===========
UNIT VALUE ................................................ $ .64340
===========
See Notes to Financial Statements.
D - 13
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES D
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2007 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 6,914 $ 7,329 $ 7,314
Accretion of original issue discount ................ 939,212 884,318 826,932
Trustee's fees and expenses ......................... (6,854) (7,337) (7,325)
----------- ----------- -----------
Net investment income ............................... 939,272 884,310 826,921
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold .................... 413,425 75,524 59,353
Unrealized (depreciation) appreciation of
investments ....................................... (2,423,766) 953,956 674,748
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (2,010,341) 1,029,480 734,101
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $(1,071,069) $ 1,913,790 $ 1,561,022
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 14
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2007 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 939,272 $ 884,310 $ 826,921
----------- ----------- -----------
Realized gain on securities sold .................... 413,425 75,524 59,353
Unrealized (depreciation) appreciation
of investments .................................... (2,423,766) 953,956 674,748
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (1,071,069) 1,913,790 1,561,022
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 318,728 1,541,671
Redemptions of units ................................ (2,247,198) (327,475) (300,187)
----------- ----------- -----------
Net capital share transactions ...................... (2,247,198) (8,747) 1,241,484
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (3,318,267) 1,905,043 2,802,506
NET ASSETS, BEGINNING OF YEAR ......................... 15,080,054 13,175,011 10,372,505
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $11,761,787 $15,080,054 $13,175,011
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .64340 $ .69445 $ .60479
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 18,280,661 21,715,233 21,784,452
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 15
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES E
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2008 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $19,387,001
Other ................................................... 35,163
-----------
Total trust property .......................... 19,422,164
LESS LIABILITY - Other .................................... 7,639
-----------
NET ASSETS (Note 2) ....................................... $19,414,525
===========
UNITS OUTSTANDING ......................................... 32,987,304
===========
UNIT VALUE ................................................ $ .58855
===========
See Notes to Financial Statements.
D - 16
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES E
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2008 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income ..................................... $ 12,755 $ 14,231 $ 15,421
Accretion of original issue
discount .......................................... 1,435,802 1,483,819 1,504,333
Trustee's fees and expenses ......................... (10,653) (11,317) (11,957)
----------- ----------- -----------
Net investment income ............................... 1,437,904 1,486,733 1,507,797
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold .................... 481,343 783,621 288,696
Unrealized (depreciation) appreciation
of investments .................................... (3,961,819) 1,129,509 1,163,882
----------- ----------- -----------
Realized and unrealized (loss) gain
on investments .................................... (3,480,476) 1,913,130 1,452,578
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $(2,042,572) $ 3,399,863 $ 2,960,375
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 17
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES E
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2008 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 1,437,904 $ 1,486,733 $ 1,507,797
Realized gain on securities sold .................... 481,343 783,621 288,696
Unrealized (depreciation) appreciation of
investments ....................................... (3,961,819) 1,129,509 1,163,882
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (2,042,572) 3,399,863 2,960,375
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional Units ........................ 447,496
Redemptions of Units ................................ (2,273,793) (2,925,925) (2,064,469)
----------- ----------- -----------
Net capital share transactions ...................... (2,273,793) (2,478,429) (2,064,469)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (4,316,365) 921,434 895,906
NET ASSETS, BEGINNING OF YEAR ......................... 23,730,890 22,809,456 21,913,550
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $19,414,525 $23,730,890 $22,809,456
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .58855 $ .64561 $ .55850
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 32,987,304 36,757,279 40,840,808
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 18
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES F
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2009 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 8,945,403
Other ................................................... 15,268
Total trust property .......................... 8,960,671
LESS LIABILITY - Other .................................... 7,485
NET ASSETS (Note 2) ....................................... $ 8,953,186
UNITS OUTSTANDING ......................................... 16,288,248
UNIT VALUE ................................................ $ .54967
See Notes to Financial Statements.
D - 19
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES F
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2009 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 6,117 $ 6,487 $ 7,191
Accretion of original issue discount ................ 617,452 614,533 639,710
Trustee's fees and expenses ......................... (6,081) (6,485) (7,105)
----------- ----------- -----------
Net investment income ............................... 617,488 614,535 639,796
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold .................... 50,758 299,484 220,815
Unrealized (depreciation) appreciation of
investments ....................................... (1,657,161) 576,107 471,994
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (1,606,403) 875,591 692,809
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ (988,915) $ 1,490,126 $ 1,332,605
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 20
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES F
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2009 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 617,488 $ 614,535 $ 639,796
Realized gain on securities sold .................... 50,758 299,484 220,815
Unrealized (depreciation) appreciation of
investments ....................................... (1,657,161) 576,107 471,994
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (988,915) 1,490,126 1,332,605
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 279,335
Redemptions of units ................................ (303,364) (1,103,948) (1,170,043)
----------- ----------- -----------
Net capital share transactions ...................... (24,029) (1,103,948) (1,170,043)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (1,012,944) 386,178 162,562
NET ASSETS, BEGINNING OF YEAR ......................... 9,966,130 9,579,952 9,417,390
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 8,953,186 $ 9,966,130 $ 9,579,952
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .54967 $ .60954 $ .52533
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 16,288,248 16,350,375 18,236,148
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 21
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES G
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2010 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 7,325,493
Other ................................................... 7,811
-----------
Total trust property ........................... 7,333,304
LESS LIABILITY - Other .................................... 1,618
-----------
NET ASSETS (Note 2) ....................................... $ 7,331,686
===========
UNITS OUTSTANDING ......................................... 14,427,345
===========
UNIT VALUE ................................................ $ .50818
===========
See Notes to Financial Statements.
D - 22
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES G
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2010 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 6,071 $ 6,416 $ 7,100
Accretion of original issue discount ................ 553,854 540,842 634,768
Trustee's fees and expenses ......................... (5,887) (6,387) (6,969)
----------- ----------- -----------
Net investment income ............................... 554,038 540,871 634,899
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold .................... 138,067 69,850 192,086
Unrealized (depreciation) appreciation of
investments ....................................... (1,694,311) 721,439 410,774
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (1,556,244) 791,289 602,860
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $(1,002,206) $ 1,332,160 $ 1,237,759
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 23
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES G
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2010 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 554,038 $ 540,871 $ 634,899
Realized gain on securities sold .................... 138,067 69,850 192,086
Unrealized (depreciation) appreciation of
investments ....................................... (1,694,311) 721,439 410,774
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (1,002,206) 1,332,160 1,237,759
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units ........................ 1,225,106 5,760,544
Redemptions of units ................................ (2,104,112) (540,288) (6,927,386)
----------- ----------- -----------
Net capital share transactions ...................... (2,104,112) 684,818 (1,166,842)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (3,106,318) 2,016,978 70,917
NET ASSETS, BEGINNING OF YEAR ......................... 10,438,004 8,421,026 8,350,109
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 7,331,686 $10,438,004 $ 8,421,026
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .50818 $ .56753 $ .48925
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 14,427,345 18,391,957 17,212,004
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 24
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES H
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2011 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 1,803,305
Other ................................................... 2,123
-----------
Total trust property ........................... 1,805,428
LESS LIABILITY - Other .................................... 282
-----------
NET ASSETS (Note 2) ....................................... $ 1,805,146
===========
UNITS OUTSTANDING ......................................... 3,760,137
===========
UNIT VALUE ................................................ $ .48007
===========
See Notes to Financial Statements.
D - 25
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES H
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2011 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 1,575 $ 1,507 $ 2,020
Accretion of original issue discount ................ 132,963 118,651 164,042
Trustee's fees and expenses ......................... (1,544) (1,527) (1,943)
----------- ----------- -----------
Net investment income ............................... 132,994 118,631 164,119
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold or redeemed ........ 13,108 104,640
Unrealized (depreciation) appreciation of investments (399,174) 186,725 71,464
----------- ----------- -----------
Realized and unrealized (loss) gain on investments .. (386,066) 186,725 176,104
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ (253,072) $ 305,356 $ 340,223
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 26
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES H
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2011 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 132,994 $ 118,631 $ 164,119
Realized gain on securities sold .................... 13,108 104,640
Unrealized (depreciation) appreciation
of investments .................................... (399,174) 186,725 71,464
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (253,072) 305,356 340,223
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units ........................ 223,286
Redemption of units ................................. (251,662) (1,116,749)
----------- ----------- -----------
Net capital share transactions ...................... (251,662) 223,286 (1,116,749)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (504,734) 528,642 (776,526)
NET ASSETS, BEGINNING OF YEAR ......................... 2,309,880 1,781,238 2,557,764
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 1,805,146 $ 2,309,880 $ 1,781,238
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .48007 $ .53929 $ .46569
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 3,760,137 4,283,180 3,824,917
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 27
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES I
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2002 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $11,171,662
-----------
Other ................................................... 768
-----------
Total trust property ........................... 11,172,430
LESS LIABILITY - Other .................................... 461
-----------
NET ASSETS (Note 2) ....................................... $11,171,969
===========
UNITS OUTSTANDING ......................................... 12,717,680
===========
UNIT VALUE ................................................ $ .87846
===========
See Notes to Financial Statements.
D - 28
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES I
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2002 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 4,770 $ 5,166 $ 4,996
Accretion of original issue discount ................ 731,886 749,861 677,645
Trustee's fees and expenses ......................... (7,304) (2,627) (4,866)
----------- ----------- -----------
Net investment income ............................... 729,352 752,400 677,775
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold or redeemed ........ 24,891 60,441 24,811
Unrealized (depreciation) appreciation of
investments ....................................... (634,836) 256,059 144,877
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (609,945) 316,500 169,688
----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ 119,407 $ 1,068,900 $ 847,463
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 29
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES I
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2002 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 729,352 $ 752,400 $ 677,775
Realized gain on securities sold .................... 24,891 60,441 24,811
Unrealized (depreciation) appreciation of
investments ....................................... (634,836) 256,059 144,877
----------- ----------- -----------
Net increase in net assets resulting
from operations ................................... 119,407 1,068,900 847,463
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units ........................ 589,692 1,602,921
Redemptions of units ................................ (900,964) (713,612) (329,153)
----------- ----------- -----------
Net capital share transactions ...................... (900,964) (123,920) 1,273,768
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (781,557) 944,980 2,121,231
NET ASSETS, BEGINNING OF YEAR ......................... 11,953,526 11,008,546 8,887,315
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $11,171,969 $11,953,526 $11,008,546
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .87846 $ .86857 $ .79373
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 12,717,680 13,762,347 13,869,363
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 30
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES J
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2013 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 1,472,076
Other ................................................... 1,263
-----------
Total trust property ........................... 1,473,339
LESS LIABILITY - Other .................................... 80
-----------
NET ASSETS (Note 2) ....................................... $ 1,473,259
===========
UNITS OUTSTANDING ......................................... 3,548,349
===========
UNIT VALUE ................................................ $ .41520
===========
See Notes to Financial Statements.
D - 31
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES J
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2013 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 1,279 $ 1,279 $ 1,279
Accretion of original issue discount ................ 95,708 88,872 82,526
Trustee's fees and expenses ......................... (1,919) (640) (1,280)
----------- ----------- -----------
Net investment income ............................... 95,068 89,511 82,525
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS:
Realized gain on securities sold
or redeemed
Unrealized (depreciation) appreciation of
investments ....................................... (305,885) 138,787 157,252
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (305,885) 138,787 157,252
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $ (210,817) $ 228,298 $ 239,777
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 32
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES J
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2013 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 95,068 $ 89,511 $ 82,525
Realized gain on securities sold
Unrealized (depreciation) appreciation of
investments ....................................... (305,885) 138,787 157,252
----------- ----------- -----------
Net (decrease) increase in net assets resulting
from operations ................................... (210,817) 228,298 239,777
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units
Redemption of units .................................
----------- ----------- -----------
Net capital share transactions ......................
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (210,817) 228,298 239,777
NET ASSETS, BEGINNING OF YEAR ......................... 1,684,076 1,455,778 1,216,001
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 1,473,259 $ 1,684,076 $ 1,455,778
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .41520 $ .47461 $ .41027
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 3,548,349 3,548,349 3,548,349
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 33
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES K
STATEMENTS OF CONDITION
AS OF DECEMBER 31, 1999
2004 TRUST 2014 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............... $ 8,741,876 $19,678,783
Other ...................................... 2,048 28,836
----------- -----------
Total trust property .............. 8,743,924 19,707,619
LESS LIABILITY - Other ....................... 845 3,564
----------- -----------
NET ASSETS (Note 2) .......................... $ 8,743,079 $19,704,055
=========== ===========
UNITS OUTSTANDING ............................ 11,372,192 51,464,519
=========== ===========
UNIT VALUE ................................... $ .76881 $ .38287
=========== ===========
See Notes to Financial Statements.
D - 34
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES K
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2004 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 4,043 $ 3,839 $ 4,366
Accretion of original issue discount ................ 532,984 517,767 556,688
Trustee's fees and expenses ......................... (3,890) (3,721) (4,217)
----------- ----------- -----------
Net investment income ............................... 533,137 517,885 556,837
----------- ----------- -----------
REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS:
Realized gain on securities sold .................... 61,277 164,436 429,318
Unrealized (depreciation) appreciation
of investments .................................... (808,067) 207,329 152,350
----------- ----------- -----------
Realized and unrealized (loss) gain on
investments ....................................... (746,790) 371,765 581,668
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................................... $ (213,653) $ 889,650 $ 1,138,505
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 35
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES K
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
2014 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ..................................... $ 23,378 $ 19,256 $ 21,572
Accretion of original issue discount ................ 1,752,879 1,464,616 1,515,782
Trustee's fees and expenses ......................... (15,897) (15,177) (15,987)
----------- ----------- -----------
Net investment income ............................... 1,760,360 1,468,695 1,521,367
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on securities sold .................... 460,505 1,722,576 2,627
Unrealized (depreciation) appreciation
of investments .................................... (6,005,304) 53,921 2,654,490
----------- ----------- -----------
Realized and unrealized (loss) gain
on investments .................................... (5,544,799) 1,776,497 2,657,117
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ........................... $(3,784,439) $ 3,245,192 $ 4,178,484
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 36
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES K
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2004 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 533,137 $ 517,885 $ 556,837
Realized gain on securities sold .................... 61,277 164,436 429,318
Unrealized (depreciation) appreciation
of investments .................................... (808,067) 207,329 152,350
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (213,653) 889,650 1,138,505
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units ........................ 1,362,662 796,913 513,283
Redemptions of units ................................ (657,428) (1,486,459) (2,219,459)
----------- ----------- -----------
Net capital share transactions ...................... 705,234 (689,546) (1,706,176)
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ................. 491,581 200,104 (567,671)
NET ASSETS, BEGINNING OF YEAR ......................... 8,251,498 8,051,394 8,619,065
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $ 8,743,079 $ 8,251,498 $ 8,051,394
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .76881 $ .78879 $ .70618
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 11,372,192 10,460,977 11,401,318
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 37
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES K
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2014 TRUST
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income ............................... $ 1,760,360 $ 1,468,695 $ 1,521,367
Realized gain on securities sold .................... 460,505 1,722,576 2,627
Unrealized (depreciation) appreciation
of investments .................................... (6,005,304) 53,921 2,654,490
----------- ----------- -----------
Net (decrease) increase in net assets
resulting from operations ......................... (3,784,439) 3,245,192 4,178,484
----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units ........................ 7,459,882 12,948,776 5,440,489
Redemptions of units ................................ (10,462,999) (9,990,644) (10,272,293)
----------- ----------- -----------
Net capital share transactions ...................... (3,003,117) 2,958,132 (4,831,804)
----------- ----------- -----------
NET (DECREASE) INCREASE IN NET ASSETS ................. (6,787,556) 6,203,324 (653,320)
NET ASSETS, BEGINNING OF YEAR ......................... 26,491,611 20,288,287 20,941,607
----------- ----------- -----------
NET ASSETS, END OF YEAR ............................... $19,704,055 $26,491,611 $20,288,287
=========== =========== ===========
UNIT VALUE, END OF YEAR ............................... $ .38287 $ .44130 $ .38263
=========== =========== ===========
UNITS OUTSTANDING, END OF YEAR ........................ 51,464,519 60,031,399 53,023,893
=========== =========== ===========
</TABLE>
See Notes to Financial Statements.
D - 38
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES L
STATEMENT OF CONDITION
AS OF DECEMBER 31, 1999
2019 TRUST
TRUST PROPERTY:
Investment in marketable securities
(see Portfolio and Note 1) ............................ $ 5,347,625
Other ................................................... 3,214
-----------
Total trust property ........................... 5,350,839
LESS LIABILITY - Other .................................... 2,885
-----------
NET ASSETS (Note 2) ....................................... $ 5,347,954
===========
UNITS OUTSTANDING ......................................... 19,378,418
===========
UNIT VALUE ................................................ $ .27597
===========
See Notes to Financial Statements.
D - 39
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES L
STATEMENT OF OPERATIONS
2019 Trust
April 29
To
December 31,
1999
INVESTMENT INCOME:
Interest income ......................................... $ 1,696
Accretion of original issue discount .................... 119,803
Trustee's fees and expenses ............................. (1,367)
-----------
Net investment income ................................... 120,132
-----------
REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS:
Realized gain on securities sold
or redeemed ........................................... 16,664
Unrealized depreciation of
investments ........................................... (130,118)
-----------
Realized and unrealized loss on
investments ........................................... (113,454)
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............................... $ 6,678
===========
See Notes to Financial Statements.
D - 40
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES L
STATEMENT OF CHANGES IN NET ASSETS
2019 Trust
April 29
To
December 31,
1999
OPERATIONS:
Net investment income ................................... $ 120,132
Realized gain on securities sold ........................ 16,664
Unrealized(depreciation)of
investments ........................................... (130,118)
-----------
Net increase in net assets resulting
from operations ....................................... 6,678
-----------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Issuance of additional units ............................ 9,355,980
Redemption of units ..................................... (4,136,740)
-----------
Net capital share transactions .......................... 5,219,240
-----------
NET INCREASE IN NET ASSETS ................................ 5,225,918
NET ASSETS, BEGINNING OF YEAR ............................. 122,036
-----------
NET ASSETS, END OF YEAR ................................... $ 5,347,954
===========
UNIT VALUE, END OF YEAR ................................... $ .27597
===========
UNITS OUTSTANDING, END OF YEAR ............................ 19,378,418
===========
See Notes to Financial Statements.
D - 41
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Funds are registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of significant
accounting policies consistently followed by the Funds in the preparation
of their financial statements. The policies are in conformity with
generally accepted accounting principles.
(a) Securities are stated at value as determined by an independent
evaluator based on bid side evaluations for the securities.
(b) Cost of securities is based on offering side evaluations for the
securities at Dates of Deposit. Cost of securities subsequent to
such dates has been adjusted to include the accretion of original
issue discount on the Stripped Treasury Securities. Realized gain
and loss on sales of securities are determined using the first-in,
first-out cost basis.
(c) The Funds are not subject to income taxes. Accordingly, no provision
for such taxes is required.
2. NET ASSETS, DECEMBER 31, 1999
Series A (2003 Trust)
Cost of 52,539,538 units at Dates of Deposit ................. $ 12,866,830
Less sales charge ............................................ 225,170
------------
Net amount applicable to Holders ............................. 12,641,660
Realized gain on securities sold ............................. 14,002,705
Unrealized appreciation of investments ....................... 2,945,412
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (8,337,260)
Undistributed net investment income .......................... 20,702,142
------------
Net assets ................................................... $ 41,954,659
============
Series B (2001 Trust)
Cost of 47,974,296 units at Dates of Deposit ................. $ 15,263,483
Less sales charge ............................................ 228,952
------------
Net amount applicable to Holders ............................. 15,034,531
Realized gain on securities sold ............................. 14,630,415
Unrealized depreciation of investments ....................... (751,079)
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (4,286,418)
Undistributed net investment income .......................... 20,467,243
------------
Net assets ................................................... $ 45,094,692
============
D - 42
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
2. NET ASSETS, DECEMBER 31, 1999 (Continued)
Series B (2005 Trust)
Cost of 28,909,581 units at Dates of Deposit ................. $ 7,343,504
Less sales charge ............................................ 128,511
------------
Net amount applicable to Holders ............................. 7,214,993
Realized gain on securities sold ............................. 6,749,469
Unrealized appreciation of investments ....................... 555,259
Redemptions of units - redemption amounts less net cost
of units redeemed .......................................... (273,885)
Undistributed net investment income .......................... 6,747,391
------------
Net assets ................................................... $ 20,993,227
============
Series C (2006 Trust)
Cost of 11,853,450 units at Dates of Deposit ................. $ 3,416,913
Less sales charge ............................................ 59,796
------------
Net amount applicable to Holders ............................. 3,357,117
Realized gain on securities sold ............................. 1,825,252
Unrealized depreciation of investments ....................... (102,777)
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... 1,251,039
Undistributed net investment income .......................... 1,860,673
------------
Net assets ................................................... $ 8,191,304
============
Series D (2007 Trust)
Cost of 18,280,661 units at Dates of Deposit ................. $ 3,592,937
Less sales charge ............................................ 71,859
------------
Net amount applicable to Holders ............................. 3,521,078
Realized gain on securities sold ............................. 4,787,420
Unrealized appreciation of investments ....................... 1,197,916
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (2,443,257)
Undistributed net investment income .......................... 4,698,630
------------
Net assets ................................................... $ 11,761,787
============
Series E (2008 Trust)
Cost of 32,987,304 units at Dates of Deposit ................. $ 6,561,354
Less sales charge ............................................ 131,227
------------
Net amount applicable to Holders ............................. 6,430,127
Realized gain on securities sold ............................. 10,783,978
Unrealized appreciation of investments ....................... 1,920,037
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (7,485,669)
Undistributed net investment income .......................... 7,766,052
------------
Net assets ................................................... $ 19,414,525
============
D - 43
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
2. NET ASSETS, DECEMBER 31, 1999 (Continued)
Series F (2009 Trust)
Cost of 16,288,248 units at Dates of Deposit ................. $ 3,559,995
Less sales charge ............................................ 35,600
------------
Net amount applicable to Holders ............................. 3,524,395
Realized gain on securities sold ............................. 116,958
Unrealized appreciation of investments ....................... 929,856
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... 933,110
Undistributed net investment income .......................... 3,448,867
------------
Net assets ................................................... $ 8,953,186
============
Series G (2010 Trust)
Cost of 14,427,345 units at Dates of Deposit ................. $ 3,733,216
Less sales charge ............................................ 74,664
------------
Net amount applicable to Holders ............................. 3,658,552
Realized gain on securities sold ............................. 2,934,824
Unrealized depreciation of investments ....................... (309,558)
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... 46,866
Undistributed net investment income .......................... 1,001,002
------------
Net assets ................................................... $ 7,331,686
============
Series H (2011 Trust)
Cost of 3,760,137 units at Dates of Deposit .................. $ 1,158,912
Less sales charge ............................................ 23,178
------------
Net amount applicable to Holders ............................. 1,135,734
Realized gain on securities sold ............................. 671,882
Unrealized appreciation of investments ....................... 36,139
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (491,555)
Undistributed net investment income .......................... 452,946
------------
Net assets ................................................... $ 1,805,146
============
D - 44
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
2. NET ASSETS, DECEMBER 31, 1999 (Continued)
Series I (2002 Trust)
Cost of 12,717,680 units at Dates of Deposit ................. $ 8,296,478
Less sales charge ............................................ 124,447
------------
Net amount applicable to Holders ............................. 8,172,031
Realized gain on securities sold ............................. 170,098
Unrealized appreciation of investments ....................... 79,360
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (11,471)
Undistributed net investment income .......................... 2,761,951
------------
Net assets ................................................... $ 11,171,969
============
Series J (2013 Trust)
Cost of 3,548,349 units at Dates of Deposit .................. $ 936,698
Less sales charge ............................................ 18,734
------------
Net amount applicable to Holders ............................. 917,964
Realized loss on securities sold ............................. (15,485)
Unrealized appreciation of investments ....................... 111,042
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... 72,037
Undistributed net investment income .......................... 387,701
------------
Net assets ................................................... $ 1,473,259
============
Series K (2004 Trust)
Cost of 11,372,192 units at Dates of Deposit ................. $ 6,745,672
Less sales charge ............................................ 134,913
------------
Net amount applicable to Holders ............................. 6,610,759
Realized gain on securities sold ............................. 748,218
Unrealized depreciation of investments ....................... (134,600)
Redemption of units - net cost of units redeemed less
redemption amounts ......................................... (25,187)
Undistributed net investment income .......................... 1,543,889
------------
Net assets ................................................... $ 8,743,079
============
D - 45
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
2. NET ASSETS, DECEMBER 31, 1999 (Concluded)
Series K (2014 Trust)
Cost of 51,464,519 units at Dates of Deposit ................. $ 16,246,211
Less sales charge ............................................ 324,924
------------
Net amount applicable to Holders ............................. 15,921,287
Realized gain on securities sold ............................. 3,401,446
Unrealized depreciation of investments ....................... (3,243,877)
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... 2,040,888
Undistributed net investment income .......................... 1,584,311
------------
Net assets ................................................... $ 19,704,055
============
Series L (2019 Trust)
Cost of 19,378,418 units at Dates of Deposit ................. $ 5,597,098
Less sales charge ............................................ 111,663
------------
Net amount applicable to Holders ............................. 5,485,435
Realized gain on securities sold ............................. 16,664
Unrealized depreciation of investments ....................... (130,118)
Redemptions of units - net cost of units redeemed less
redemption amounts ......................................... (72,845)
Undistributed net investment income .......................... 48,818
------------
Net assets ................................................... $ 5,347,954
============
3. CAPITAL SHARE TRANSACTIONS
Additional units were issued as follows:
Series Trust 1999 1998 1997
A 2003 745,575 0 295,618
B 2001 1,113,282 749,573 499,725
B 2005 0 2,941,197 1,222,534
C 2006 0 1,681,203 420,107
D 2007 0 458,880 2,872,766
E 2008 0 780,399 0
F 2009 476,294 0 0
G 2010 0 2,245,742 13,001,876
H 2011 0 458,263 0
I 2002 0 727,856 2,168,572
J 2013 0 0 0
K 2004 1,749,845 1,072,923 770,557
K 2014 17,787,517 31,094,278 16,314,688
L 2019 33,092,500 0 0
D - 46
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS (Continued)
Units were redeemed as follows:
Series Trust 1999 1998 1997
A 2003 8,056,956 5,826,527 8,066,861
B 2001 6,659,064 4,662,930 5,992,055
B 2005 4,957,583 2,316,917 2,976,435
C 2006 263,110 793,015 2,117,172
D 2007 3,434,572 528,099 529,607
E 2008 3,769,975 4,863,928 4,049,357
F 2009 538,421 1,885,773 2,422,964
G 2010 3,964,612 1,065,789 15,603,490
H 2011 523,043 0 2,616,292
I 2002 1,044,667 834,872 418,112
J 2013 0 0 0
K 2004 838,630 2,013,264 2,847,208
K 2014 26,354,397 24,086,772 29,625,233
L 2019 14,104,605 0 0
Units may be redeemed at the office of the Trustee upon tender thereof
generally on any business day or, in the case of uncertificated units,
upon delivery of a request for redemption and payment of any relevant tax.
The Trustee will redeem units either in cash or in kind at the option of
the Holder as specified in writing to the Trustee.
4. INCOME TAXES
All items of income received, accretion of original issue discount,
expenses paid, and realized gains and losses on securities sold are
attributable to the Holders, on a pro rata basis, for Federal income tax
purposes in accordance with the grantor trust rules of the United States
Internal Revenue Code.
At December 31, 1999, the cost of investment securities for Federal income
tax purposes was approximately equivalent to the adjusted cost as shown in
each Trust's portfolio.
5. DISTRIBUTIONS
It is anticipated that each Trust will not make any distributions until
the first business day following the maturity of its holdings in the
Stripped Treasury Securities which are noninterest-bearing.
D - 47
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
PORTFOLIOS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Portfolio No. Adjusted
and Title of Interest Face Cost Value
Securities Rate Maturities Amount (Note A) (Note A)
<S> <C> <C> <C> <C> <C>
Series A (2003 Trust)
1 Stripped Treasury
Securities (Note B) 0% 8/15/03 $52,409,625 $38,716,750 $41,670,547
2 U.S. Treasury Bonds 11.125 8/15/03 169,789 203,165 194,780
----------- ----------- -----------
Total $52,579,414 $38,919,915 $41,865,327
=========== =========== ===========
Series B (2001 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/01 $48,009,325 $45,597,502 $44,870,462
2 U.S. Treasury Bonds 11.750 2/15/01 142,152 174,853 150,814
----------- ----------- -----------
Total $48,151,477 $45,772,355 $45,021,276
=========== =========== ===========
Series B (2005 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/05 $29,076,940 $20,299,901 $20,864,278
2 U.S. Treasury Bonds 11.625 11/15/04 87,141 114,504 105,386
----------- ----------- -----------
Total $29,164,081 $20,414,405 $20,969,664
=========== =========== ===========
Series C (2006 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/06 $12,145,000 $ 8,241,677 $ 8,142,640
2 U.S. Treasury Bonds 9.375 2/15/06 40,698 50,187 46,447
----------- ----------- -----------
Total $12,185,698 $ 8,291,864 $ 8,189,087
=========== =========== ===========
Series D (2007 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/07 $18,640,000 $10,489,816 $11,684,900
2 U.S. Treasury Bonds 9.375 2/15/06 66,045 72,542 75,374
----------- ----------- -----------
Total $18,706,045 $10,562,358 $11,760,274
=========== =========== ===========
</TABLE>
D - 48
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
PORTFOLIOS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Portfolio No. Adjusted
and Title of Interest Face Cost Value
Securities Rate Maturities Amount (Note A) (Note A)
<S> <C> <C> <C> <C> <C>
Series E (2008 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/08 $32,954,000 $17,326,543 $19,241,148
2 U.S. Treasury Bonds 9.375 2/15/06 127,801 140,421 145,853
----------- ----------- -----------
Total $33,081,801 $17,466,964 $19,387,001
=========== =========== ===========
Series F (2009 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/09 $16,308,000 $ 7,942,452 $ 8,872,025
2 U.S. Treasury Bonds 9.375 2/15/06 64,296 73,094 73,378
----------- ----------- -----------
Total $16,372,296 $ 8,015,546 $ 8,945,403
=========== =========== ===========
Series G (2010 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/10 $14,308,000 $ 7,570,049 $ 7,259,722
2 U.S. Treasury Bonds 9.375 2/15/06 57,631 65,003 65,772
----------- ----------- -----------
Total $14,365,631 $ 7,635,052 $ 7,325,494
=========== =========== ===========
Series H (2011 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/11 $ 3,773,000 $ 1,749,125 $ 1,786,361
2 U.S. Treasury Bonds 9.375 2/15/06 14,847 18,041 16,944
----------- ----------- -----------
Total $ 3,787,847 $ 1,767,166 $ 1,803,305
=========== =========== ===========
</TABLE>
D - 49
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
PORTFOLIOS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Portfolio No. Adjusted
and Title of Interest Face Cost Value
Securities Rate Maturities Amount (Note A) (Note A)
<S> <C> <C> <C> <C> <C>
Series I (2002 Trust)
1 Stripped Treasury
Securities (Note B) 0% 02/15/02 $12,668,000 $11,028,104 $11,109,190
2 U.S. Treasury Notes 7.500 11/15/01 61,135 64,198 62,472
----------- ----------- -----------
Total $12,729,135 $11,092,302 $11,171,662
=========== =========== ===========
Series J (2013 Trust)
1 Stripped Treasury
Securities (Note B) 0% 02/15/13 $ 3,552,000 $ 1,345,661 $ 1,457,098
2 U.S. Treasury Bonds 10.375 11/15/12(C) 12,328 15,373 14,978
----------- ----------- -----------
Total $ 3,564,328 $ 1,361,034 $ 1,472,076
=========== =========== ===========
Series K (2004 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/04 $11,288,000 $ 8,806,113 $ 8,674,591
2 U.S. Treasury Notes 5.875 2/15/04 68,418 70,363 67,285
----------- ----------- -----------
Total $11,356,418 $ 8,876,476 $ 8,741,876
=========== =========== ===========
Series K (2014 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/14 $50,893,000 $22,676,383 $19,452,781
2 U.S. Treasury Bonds 11.250 2/15/15 159,931 246,277 226,002
----------- ----------- -----------
Total $51,052,931 $22,922,660 $19,678,783
=========== =========== ===========
Series L (2019 Trust)
1 Stripped Treasury
Securities (Note B) 0% 2/15/19 $19,224,000 $ 5,384,455 $ 5,255,822
2 U.S. Treasury Bonds 8.875% 2/15/19 75,480 93,288 91,803
----------- ----------- -----------
Total $19,299,480 $ 5,477,743 $ 5,347,625
=========== =========== ===========
</TABLE>
D - 50
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES
NOTES TO PORTFOLIOS
AS OF DECEMBER 31, 1999
Note A - See Note 1 to Financial Statements.
Note B - Stripped Treasury Securities consist of one or more of the following
types of securities: (a) U.S. Treasury debt obligations which have
been stripped of their remaining interest coupons, (b) interest
coupons which have been stripped from U.S. Treasury debt
obligations, and (c) receipts or certificates for underlying
stripped U.S. Treasury debt obligations. The receipts or
certificates evidence ownership of future interest or principal
payments on U.S. Treasury notes or bonds. The receipts or
certificates are issued in registered form by a major bank which
acts as custodian and nominal holder of the underlying stripped U.S.
Treasury debt obligations. The Stripped Treasury Securities are
payable in full at maturity at their stated maturity amount and are
not subject to redemption prior to maturity. The Stripped Treasury
Securities do not make any periodic payments of interest.
Note C - Callable at par commencing 11/15/07.
D - 51
<PAGE>
<TABLE>
<S> <C>
HAVE QUESTIONS ? THE MERRILL LYNCH FUND OF STRIPPED
Request the most recent free ("ZERO") U.S TREASURY SECURITIES,
Information Supplement SERIES A-L
that gives more details about (Unit Investment Trusts)
the Fund, by calling: ---------------------------------------
The Chase Manhattan Bank This Prospectus does not contain
1-800-323-1508 complete information about the
investment company filed with the
Securities and Exchange Commission in
Washington, D.C. under the:
- Securities Act of 1933 (file numbers:
2-89536, 2-94915, 33-02813, 33-13386,
33-21320, 33-28038, 33-34403, 33-
39606, 33-47078, 33-49519, 33-53085 and
333-76661);
- Investment Company Act of 1940 (file
no. 811-3965).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
This Prospectus may be used as a
preliminary prospectus for a future
series, but some of the information in
this Prospectus will be changed for
that series.
UNITS OF ANY FUTURE SERIES MAY NOT BE
SOLD NOR MAY OFFERS TO BUY BE ACCEPTED
UNTIL THAT SERIES HAS BECOME EFFECTIVE
WITH THE SECURITIES AND EXCHANGE
COMMISSION. NO UNITS CAN BE SOLD IN ANY
STATE WHERE A SALE WOULD BE ILLEGAL.
</TABLE>
14850--4/00
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED
("ZERO") U.S. TREASURY SECURITIES, SERIES A-L
CONTENTS OF REGISTRATION STATEMENT
This Post-Effective Amendment to the Registration Statement on Form S-6
comprises the following papers and documents:
The facing sheet of Form S-6.
The Prospectus.
The Signatures.
The following exhibits:
1.1.1 -- Form of Standard Terms and Conditions of Trust Effective as of
October 21, 1993 (incorporated by reference to Exhibit 1.1.1 to the
Registration Statement of Municipal Investment Trust Fund, Multi-
state Series--48, 1933 Act File No. 33-50247).
4.1 --Consent of the Evaluator.
5.1 --Consent of independent accountants.
9.1 -- Information Supplement (incorporated by reference to Exhibit 9.1 to
the Registration Statement of Government Securities Income Fund,
Freddie Mac Series 12, 1933 Act File No. 33-56849.
R-1
<PAGE>
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES A-L
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
THE MERRILL LYNCH FUND OF STRIPPED ("ZERO") U.S. TREASURY SECURITIES, SERIES
A-L, HAS DULY CAUSED THIS AMENDMENT TO THE REGISTRATION STATEMENT TO BE SIGNED
ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED IN THE CITY OF NEW
YORK AND STATE OF NEW YORK ON THE 12TH DAY OF APRIL, 2000.
SIGNATURES APPEAR ON PAGES R-3
A majority of the members of the Board of Directors of Merrill Lynch,
Pierce, Fenner & Smith Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
R-2
<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR
<TABLE>
<S> <C>
By the following persons, who constitute Powers of Attorney have been filed
a majority of under
the Board of Directors of Merrill Form SE and the following 1933 Act
Lynch, Pierce, File
Fenner & Smith Incorporated: Number: 333-70593
</TABLE>
GEORGE A. SCHIEREN
JOHN L. STEFFENS
By JAY M. FIFE
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)
R-3
EXHIBIT 4.1
INTERACTIVE DATA
FINANCIAL TIMES INFORMATION
14 WALL STREET, 11th FLOOR
NEW YORK, NEW YORK 10005
(212) 306-6596
FAX 212-306-6698
April 12, 2000
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, New Jersey 08543-9051
The Chase Manhattan Bank
4 New York Plaza--6th Floor
New York, New York 10081
RE: THE MERRILL LYNCH FUND OF STRIPPED ("ZERO")
U.S. TREASURY SECURITIES, SERIES A-L
(A Unit Investment Trust) Units of Fractional Undivided Interest-Registered
Under the Securities Act of 1933, File No. 2-89536, 2-94915, 33-02813, 33-13386,
33-21320, 33-28038, 33-34403, 33-39606, 33-47078, 33-49519, 33-53085 and
333-76661)
Gentlemen:
We have examined the Registration Statement for the above captioned Fund.
We hereby consent to the reference to Interactive Data Services, Inc. in the
Prospectus contained in the Post-Effective Amendment No. 17 to the Registration
Statement for the above captioned Fund and to the use of the evaluations of the
Obligations prepared by us which are referred to in such Prospectus and
Registration Statement.
You are authorized to file copies of this letter with the Securities and
Exchange Commission.
Very truly yours,
JAMES PERRY
Vice President
Exhibit 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS
The Sponsor and Trustee of
The Merrill Lynch Fund of of Stripped ("Zero") U.S. Treasury Securities, Series
A, B, C, D, E, F, G, H, I, J, K and L
We consent to the use in this Post-Effective Amendment No. 16 to Registration
Statement Numbers: 2-89536, 2-94915, 33-02813, 33-13386, 33-21320, 33-28038,
33-34403, 33-39606, 33-47078, 33-49519, 33-53085 and 333-76661 of our opinion
dated February 14, 2000 appearing in the Prospectus, which is part of such
Registration Statement, and to the reference to us under the heading "Auditors"
in such Prospectus.
DELOITTE & TOUCHE LLP
New York, N.Y.
April 12, 200
