New Issue: Bank of America prices $5.67 million capped leveraged notes tied to gold

By Jennifer Chiou

New York, May 16 - Bank of America Corp. priced $5.67 million of 0% Capped Leveraged Index Return Notes due June 4, 2013 linked to the gold spot price, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus double any gain in the price of gold, up to a maximum return of 18.7%.

Investors will receive par if the price of gold falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.

Issuer:	Bank of America Corp.
Issue:	Capped Leveraged Index Return Notes
Underlying commodity:	Gold
Amount:	$5,672,610
Maturity:	June 4, 2013
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 200% of any gold price gain, capped at 18.7%; 1% loss for every 1% drop beyond 10%
Initial price:	$1,489.50
Threshold price:	$1,340.55, 90% of initial level
Pricing date:	May 12
Settlement date:	May 19
Agent:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	2%
Cusip:	06050R650

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