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This lecture covers the Kraft-McMillan theorem, which states that if the codeword lengths of a D-ary code satisfy Kraft's inequality, then there exists a uniquely decodable prefix-free code with those lengths. The lecture also explores the proof of this theorem, including the concept of prefix-free codes, terminal leaves, and the importance of fulfilling Kraft's inequality. Additionally, exercises are provided to help understand the application of the theorem in constructing prefix-free codes. The lecture concludes with a detailed proof outline and important consequences of the Kraft-McMillan theorem.