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Defined
Asset FundsSM
Corporate
Income Fund
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MONTHLY PAYMENT
SERIES--317
A UNIT INVESTMENT
TRUST
/ / DIVERSIFIED
/ / MONTHLY INCOME
/ / INVESTMENT GRADE
8.32%
ESTIMATED CURRENT RETURN
AS OF DECEMBER 5, 1994
8.39%
ESTIMATED LONG TERM RETURN
AS OF DECEMBER 5, 1994
TAX EXEMPT TO FOREIGN
HOLDERS WHEN CERTAIN
CONDITIONS ARE MET
Merrill Lynch,
Pierce, Fenner & Smith Inc.
Unit Investment Trusts
P.O. Box 9051
Princeton, N.J. 08453-9051
(609)282-8500
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INVESTMENT SUMMARY AS OF DECEMBER 5, 1994
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ESTIMATED CURRENT RETURN(a)
(based on Public Offering Price) 8.32%
ESTIMATED LONG TERM RETURN(a)
(based on Public Offering Price) 8.39%
PUBLIC OFFERING PRICE PER UNIT
(including 4.50% sales charge) $ 953.21(b)
FACE AMOUNT OF SECURITIES-- $ 4,000,000
INITIAL NUMBER OF UNITS(c)-- 4,000
SPONSORS' REPURCHASE PRICE AND
REDEMPTION PRICE PER UNIT(d)
(based on bid side evaluation) $ 905.31(b)
FRACTIONAL UNDIVIDED INTEREST IN
FUND REPRESENTED BY EACH UNIT-- 1/4,000TH
CALCULATION OF PUBLIC OFFERING
PRICE
Aggregate offer side evaluation
of Securities in Fund....... $ 3,641,250.00
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Divided by 4,000 Units......... $ 910.31
Plus sales charge of 4.50% of
Public Offering Price
(4.712% of net amount
invested in
Securities)(e).................... 42.90
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Public Offering Price per
Unit.............................. $ 953.21
Plus accrued interest(f)....... 1.54
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Total....................... $ 954.75
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MONTHLY INCOME DISTRIBUTIONS
First distribution to be paid on the
25th day of March, 1995 to Holders
of record on the 10th day of
March, 1995............................. $ 7.05
Calculation of second and following
distributions, to be paid on the
25th day of each month:
Estimated net annual interest rate
per Unit times $1,000............. $ 79.32
Divided by 12........................ $ 6.61
REDEMPTION PRICE PER UNIT LESS THAN:
Public Offering Price by.......... $ 47.90
Sponsors' Initial Repurchase Price
by...................................... $ 5.00
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PORTFOLIO AT A GLANCE--
DIVERSIFICATION--The Portfolio contains obligations of 14 issuers
representing corporate utilities and other issuers. Because of possible
maturity, sale or other disposition of Securities, the size, composition and
return of the Portfolio may change at any time.
INVESTMENT QUALITY--All 15 issues are investment grade. Standard & Poor's
rated 1 issue AAA, 2 issues AA, 9 issues A and 2 issues BBB+. Moody's rated 1
issue Aaa, 1 issue Aa, 10 issues A and 3 issues Baa. Fitch rated 1 issue AAA, 2
issues AA and 4 issues A.
LONG-TERM MATURITIES--The issues have maturity dates ranging from 2022 to
2031.
CALL PROTECTION--Issuers are usually able to redeem bonds under optional
refunding and sinking fund provisions. Optional refunding redemptions, which may
redeem all or part of an issue, are in most cases initially at a premium, and
then in subsequent years at declining prices, but typically not below par value.
Approximately 25% of the aggregate face amount of the Debt Obligations are not
subject to call prior to maturity. Approximately 6% of the aggregate face amount
of the Debt Obligations are currently subject to optional refunding redemptions
at prices initially not less than 104.13% of par; approximately 69% of the Debt
Obligations are subject to optional refunding redemptions, but not before 1998,
and then at prices initially not less than 102.39% of par (see Portfolio). Bonds
are also generally subject to mandatory sinking fund redemptions at par over the
life of the issue and may also provide for redemption at par prior or in
addition to any optional or mandatory redemption dates or maturity, for example,
through operation of a maintenance and replacement fund, if proceeds are not
able to be used as contemplated, the project is condemned or sold, the project
is destroyed and insurance proceeds are used to redeem the bonds or in other
special circumstances.
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(a) Estimated Current Return represents annual interest income after estimated
annual expenses divided by the maximum public offering price including a 4.50%
maximum sales charge. Estimated Long Term return is the net annual percentage
return based on the yield on each underlying Debt Obligation weighted to reflect
market value and time to maturity or earlier call date. Estimated Long Term
return is adjusted for estimated expenses and the maximum offering price but not
for delays in the Fund's distribution of income. Estimated Current Return shows
current annual cash return to investors while Estimated Long Term Return shows
the return on Units held to maturity, reflecting maturities, discounts and
premiums on underlying Debt Obligations. Each figure will vary with purchase
price including sales charge, changes in Fund income and the redemption, sale or
other disposition of Debt Obligations in the Portfolio.
(b) Plus accrued interest.
(c) The Sponsors may create additional Units during the offering period of the
Fund.
(d) During the initial offering period, the Fund's Sponsors intend to offer to
purchase Units at prices based on the offer side value of the underlying
Securities. Thereafter, the Sponsors intend to maintain such a market based on
the bid side value of the underlying Securities which will be equal to the
Redemption Price.
( e ) The sales charge during the initial offering period and in the secondary
market will be reduced on a graduated scale in the case of quantity purchases.
The resulting reduction in the Public Offering Price will increase the effective
current and long term returns on a Unit.
(f) Figure shown represents interest accrued on underlying Securities from the
Initial Date of Deposit to expected date of settlement (normally five business
days after purchase) for Units purchased on the Initial Date of Deposit.
VOLUME PURCHASE DISCOUNT
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INITIAL OFFERING PERIOD SECONDARY MARKET SALES
A PERCENTAGE OF THE OFFER A PERCENTAGE OF THE BID
SIDE SIDE
NUMBER OF UNITS PUBLIC OFFERING PRICE NUMBER OF UNITS PUBLIC OFFERING PRICE
- ------------------- -------------------------- ------------------- --------------------------
Less than 250...... 4.50 % Less than 250...... 5.50 %
250 - 499.......... 3.50 250 - 499.......... 4.50
500 - 749.......... 3.00 500 - 749.......... 3.50
750 - 999.......... 2.50 750 - 999.......... 2.50
1,000 or more...... 2.00 1,000 or more...... 2.00
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Defined Corporate Income Funds
Our defined portfolios of corporate bonds offer investors
a simple and convenient way to earn monthly income. And
by purchasing corporate Defined Funds, investors not only
avoid the problem of selecting corporate bonds by
themselves, but also gain the advantage of
diversification by investing in bonds of several
different issuers.
Monthly Income
Even though the securities in the portfolio pay interest
semi-annually or annually, the Fund will make monthly
distributions of net interest income.
Reinvestment Option
You can elect to automatically reinvest your
distributions into a
separate portfolio of corporate bonds. Reinvesting helps
to compound your income and keeps your capital
continuously working for you.
Investment Grade Quality
Each bond in the Fund has been selected by investment
professionals among available investment grade bonds or
those, in the opinion of Defined Asset Funds research
analysts, having comparable credit characteristics. Risk
is further reduced by purchasing bonds of a number of
different issuers and types.
Professional Selection and Supervision
Each bond in the Fund has been selected by experienced
buyers and market analysts. Spreading your investment
among different securities and issuers reduces your risk,
but does not eliminate it. The Fund is not actively
managed. However, the portfolio is regularly reviewed and
a security can be sold if retaining it could be
detrimental to investors' interests.
A Liquid Investment
Although not legally required to do so, the Sponsors have
maintained a secondary market for Defined Asset Funds for
over 20 years. You can cash in your units at any time.
Your price is based on the market value of the Fund's
securities at that time as determined by an independent
evaluator. Or, you can exchange your investment for
another Defined Fund at a reduced sales charge. There is
never a fee for cashing in your investment.
Principal Distributions
Principal from sales, redemptions and maturities of bonds
in the Fund is distributed to investors periodically.
Risk Factors
Unit price fluctuates and is affected by interest rates
as well as the financial condition of the issuers of the
bonds.
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A free prospectus containing more complete information, including charges and
expenses, regarding this Trust is available from your financial professional.
Please read the prospectus carefully before you invest.
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PORTFOLIO OF CORPORATE INCOME FUND,
MONTHLY PAYMENT SERIES-- 317, DEFINED ASSET FUNDS
ON THE INITIAL DATE OF DEPOSIT, DECEMBER 6, 1994
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RATINGS OF ISSUES
MOODY'S FITCH OPTIONAL
PORTFOLIO NO. AND STANDARD INVESTORS INVESTORS REFUNDING
SECURITIES CONTRACTED FOR & POOR'S SERVICE SERVICE FACE AMOUNT COUPON MATURITIES REDEMPTIONS (1)
-------- -------- -------- ------------ ----- ----- --------------------
1. Alabama Power Company, First A A1 A $ 250,000 9.000% 12/01/24 12/01/99@ 106.32
Mortgage Bonds
2. CIGNA Corporation, Notes A Baa1 NR 250,000 7.650 3/01/23 --
3. CNA Financial Company, Debentures A+ A1 NR 500,000 7.250 11/15/23 --
4. Ford Motor Credit, Notes A A2 NR 250,000 8.875 11/15/22 11/15/02@ 104.15
5. International Paper Company, NR A3 NR 250,000 8.125 6/15/24 6/15/04@ 103.77
Debentures
6. Jersey Central Power and Light BBB+ Baa1 A 250,000 7.500 5/01/23 4/27/03@ 103.33
Company, First Mortgage Bonds
7. Lincoln National Corporation, A+ A1 NR 250,000 9.125 10/01/24 10/01/04@ 104.33
Debentures
8. Loews Corporation, Senior Notes AA A1 AA 250,000 7.000 10/15/23 10/15/03@ 102.39
9. May Department Stores Company, A A2 NR 250,000 8.375 8/01/24 8/01/04@ 104.19
Debentures
10. New York Telephone Company, A A2 NR 250,000 7.250 2/15/24 2/15/04@ 103.06
Debentures
11. Pacific Gas & Electric Company, A A1 A 250,000 8.250 11/01/22 12/01/02@ 103.14
First and Refunding Mortgage
Bonds, Series 93-F
12. PECO, First and Refunding Mortgage BBB+ Baa1 A 250,000 7.750 5/01/23 5/01/98@ 105.29
Bonds
13. Quebec, Province of, Debentures A+ A1 NR 250,000 8.625 12/01/26 --
14. Southwestern Bell Telephone AAA Aaa AAA+ 250,000 8.625 9/01/26 Currently@ 104.13
Company, Debentures
15. US West Communications AA Aa3 AA 250,000 8.875 6/01/31 6/01/01@ 105.92
Incorporated, Debentures
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$ 4,000,000
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NOTES
(1) Bonds are first subject to optional redemptions (which may be exercised in
whole or in part) on the dates and at the prices indicated under the
Optional Refunding Redemptions column in the table. In subsequent years
Securities are redeemable at declining prices, but typically not below par
value. Some issues may be subject to sinking fund redemption or
extraordinary redemption without premium prior to the dates shown.
Certain bonds may provide for redemption at par prior or in addition to any
optional or mandatory redemption dates or maturity, for example, through
the operation of a maintenance and replacement fund, if proceeds are not
able to be used as contemplated, the project is condemned or sold, the
project is destroyed and insurance proceeds are used to redeem the bonds or
in other special circumstances.
Sinking fund redemptions are all at par and generally redeem only part of
an issue. Some of the Securities have mandatory sinking funds which contain
optional provisions permitting the issuer to increase the principal amount
of Securities called on a mandatory redemption date. The sinking fund
redemptions with optional provisions may, and optional refunding
redemptions generally will, occur at times when the redeemed Securities
have an offering side evaluation which represents a premium over par. To
the extent that the Securities were acquired at a price higher than the
redemption price, this will represent a loss of capital when compared with
the original Public Offering Price of the Units. Monthly distributions will
generally be reduced by the amount of the income which would otherwise have
been paid with respect to redeemed Securities and there will be distributed
to Holders any principal amount and premium received on such redemption
after satisfying any redemption requests received by the Fund. The
estimated current return and estimated long term return in this event may
be affected by redemptions. The tax effect on Holders of redemptions and
related distributions is described under Taxes.
---------------------------------------------
All Securities are represented entirely by contracts to purchase such
Securities, which were entered into on December 5, 1994. All contracts are
expected to be settled by the initial settlement date for the purchase of Units.
15028-12/94
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