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Defined
Asset FundsSM
Corporate
Income Fund
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INSURED SERIES--24
A UNIT INVESTMENT
TRUST
/ / INSURED
/ / MONTHLY INCOME
/ / AAA-RATED
7.78%
ESTIMATED CURRENT
RETURN
7.84%
ESTIMATED LONG TERM
RETURN
AS OF JULY 7, 1994
U.S. TAX EXEMPT FOR FOREIGN
INVESTORS WHEN CERTAIN
CONDITIONS ARE MET
Merrill Lynch,
Pierce, Fenner & Smith Inc.
Unit Investment Trusts
P.O. Box 9051
Princeton, N.J. 08543-9051
(609) 282-8500
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INVESTMENT SUMMARY AS OF JULY 7, 1994
<TABLE>
<S> <C>
ESTIMATED CURRENT RETURN( a )
(based on Public Offering Price) 7.78%
ESTIMATED LONG TERM RETURN( a )
(based on Public Offering Price) 7.84%
PUBLIC OFFERING PRICE PER UNIT
(including 4.50% sales charge) $ 970.11( b )
FACE AMOUNT OF SECURITIES-- $ 6,000,000
INITIAL NUMBER OF UNITS( c )-- 6,000
SPONSORS' REPURCHASE PRICE AND
REDEMPTION PRICE PER UNIT( d )
(based on bid side evaluation) $ 921.46( b )
FRACTIONAL UNDIVIDED INTEREST IN
FUND REPRESENTED BY EACH UNIT-- 1/6,000TH
CALCULATION OF PUBLIC OFFERING
PRICE
Aggregate offer side
evaluation of Securities
in Fund......................... $ 5,558,750.00
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Divided by 6,000 Units....... $ 926.46
Plus sales charge of 4.50% of
Public Offering Price
(4.712% of net amount
invested in
Securities)( e )................ 43.65
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Public Offering Price per
Unit............................ $ 970.11
Plus accrued interest( f )... 1.46
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Total..................... $ 971.57
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MONTHLY INCOME DISTRIBUTIONS
First distribution to be paid on
the 25th day of October, 1994 to
Holders of record on the 10th
day of October, 1994............ $ 6.58
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... $ 75.48
Divided by 12................ $ 6.29
REDEMPTION PRICE PER UNIT LESS THAN:
Public Offering Price by........ $ 48.65
Sponsors' Initial Repurchase
Price by.............................. $ 5.00
</TABLE>
PORTFOLIO AT A GLANCE--
DIVERSIFICATION--The Portfolio contains obligations of 10 issuers
representing 10 public utility companies. 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--Units of the Fund are rated AAA by Standard & Poor's.
LONG-TERM MATURITIES--The issues have maturity dates ranging from 2022 to
2025.
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 8% of the aggregate face amount of the Debt Obligations are
currently subject to optional refunding redemptions at prices initially not less
than 106.14% of par; approximately 92% of the Debt Obligations are subject to
optional refunding redemptions but not before 1996, at prices initially not less
than 102.69% 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 or the project is destroyed and
insurance proceeds are used to redeem the bonds.
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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
(see Public Sale of Units--Public Offering Price). 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 Deposits.
VOLUME PURCHASE DISCOUNT
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<CAPTION>
INITIAL OFFERING PERIOD SECONDARY MARKET SALES
<S> <C> <C> <C>
SALES CHARGE AS SALES CHARGE AS
A PERCENTAGE OF THE OFFER SIDE A PERCENTAGE OF THE BID 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.
AAA RATED AND INSURED
Each bond in the Fund is unconditionally and irrevocably
insured as to payment of interest and principal for as
long as the bond is retained in the Fund. As a result the
units of the Fund have received Standard & Poor's highest
rating of AAA, which indicates a Fund holding securities
with an extremely strong capacity to pay interest and
repay principal. Insurance guarantees payment of
scheduled principal and interest but not market value,
which fluctuates with changes in interest rates, changes
in the credit quality of the underlying bonds and other
factors.
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 bonds in the portfolio and/or their
Insurer are regularly reviewed and a security can be sold
if retaining it would be detrimental to investors'
interests.
A LIQUID INVESTMENT
Although not legally required to do so, we 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 and the
insurer of the bonds.
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PORTFOLIO OF CORPORATE INCOME FUND
INSURED SERIES--24
DEFINED ASSET FUNDS
ON THE INITIAL DATE OF DEPOSIT,
July 8, 1994
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<S> <C> <C> <C> <C> <C> <C> <C>
RATINGS OF
ISSUES(1)
STANDARD OPTIONAL
PORTFOLIO NO. AND & FACE REFUNDING
SECURITIES CONTRACTED FOR POOR'S MOODY'S AMOUNT COUPON MATURITIES REDEMPTIONS (2)
------- ------- ------------ ----- ----- --------------------
1. Duke Power Company, First and AA Aa2 $ 500,000 7.875% 5/1/24 5/1/99@ 103.59
Refunding Mortgage Bonds
2. Georgia Power Company, First A A2 500,000 7.950 2/1/23 currently@ 106.14
Mortgage Bonds
3. Houston Lighting and Power, First A A2 1,000,000 7.500 7/1/23 7/1/03@ 103.51
Mortgage Bonds
4. Jersey Central Power and Light BBB+ A3 500,000 7.500 5/1/23 4/27/03@ 103.33
Company, First Mortgage Bonds
5. New York Telephone Company, A A2 500,000 7.250 2/15/24 2/15/04@ 103.06
Debentures
6. Pacific Gas and Electric Company, A A1 500,000 8.250 11/1/22 12/1/02@ 103.14
First Mortgage Bonds
7. PECO Energy, First and Refunding BBB+ Baa1 500,000 8.250 9/1/22 9/1/97@ 105.20
Mortgage Bonds
8. Public Service Electric and Gas A A2 500,000 7.500 3/1/23 3/1/98@ 105.38
Company, First and Refunding
Mortgage Bonds, Series OO
9. Southern California Edison A+ Aa3 1,000,000 8.875 6/1/24 6/1/96@ 103.68
Company, First Mortgage Bonds
10. Texas Utilities Company, First BBB Baa2 500,000 7.625 7/1/25 7/1/03@ 102.69 --
Mortgage Bonds
------------
$ 6,000,000
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</TABLE>
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NOTES
(1) These ratings do not reflect the fact that the scheduled principal and
interest payments for all the Debt Obligations, while retained in the Fund,
will be insured by MBIA. The MBIA Insurance is effective only while the
Debt Obligations are retained in the Fund. Any rating followed by '*' is
subject to submission and review of final documentation. Any rating
followed by 'p' is provisional and assumes the successful completion of the
project being financed.
(2) 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
bonds 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 Debt Obligations 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,
sold or the project is destroyed and insurance proceeds are used to redeem
the Debt Obligations 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 bonds 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.
------------------------------------
All Debt Obligations are represented entirely by contracts to purchase such Debt
Obligations, which were entered into by the Sponsors on July 7, 1994. All
contracts are expected to be settled by the initial settlement date for
the purchase of Units. All Debt Obligations have been insured by MBIA for
the period that they are retained by the Fund (see Risk Factors --Insured
Series).
14881-7/94
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