New Issue: Bank of America prices $13.19 million step up notes linked to real, peso versus euro

By Angela McDaniels

Tacoma, Wash., Aug. 2 - Bank of America Corp. priced $13.19 million of 0% currency-linked step up notes due July 27, 2012 linked to the performance of the Brazilian real and Mexican peso relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.

The real and peso are equally weighted in the underlying basket.

If the basket appreciates relative to the euro, the payout at maturity will be par of $10 plus the greater of the basket gain and 19%. Investors will be exposed to any basket decline, subject to a minimum payout of $9 per note.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

Issuer:	Bank of America Corp.
Issue:	Currency-linked step up notes
Underlying currencies:	Brazilian real and Mexican peso, equally weighted
Amount:	$13,185,420
Maturity:	July 27, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus greater of basket gain and 19% if basket appreciates relative to euro; exposure to any basket decline relative to euro, subject to maximum loss of 10%
Initial exchange rates:	2.3086 for real and 16.5516 for peso
Pricing date:	July 29
Settlement date:	Aug. 5
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	1.75%
Cusip:	06052K406

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