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Published on 1/31/2011 in the Prospect News Structured Products Daily.

New Issue: Bank of America sells $35.16 million Stars tied to iShares MSCI EAFE, EM

By Susanna Moon

Chicago, Jan. 31 - Bank of America Corp. priced $35.16 million of 0% Strategic Accelerated Redemption Securities due Feb. 6, 2012 linked to a basket of two equally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying ETFs are the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund.

If the basket closes at or above its starting value on any of three observation dates, the notes will be called at par of $10.00 plus a premium. The payment will be $10.54850 if the notes are called on July 25, $10.82275 if called on Oct. 24, 2011 and $11.09700 if called on Jan. 30, 2012.

The payout at maturity will be par if the basket falls by up to 5%. Investors will lose 1% for each 1% decline beyond 5%.

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

Issuer:Bank of America Corp.
Issue:Strategic Accelerated Redemption Securities
Underlying basket:iShares MSCI EAFE index fund and iShares MSCI Emerging Markets index fund, equally weighted
Amount:$35,155,470
Maturity:Feb. 6, 2012
Coupon:0%
Price:Par of $10.00
Payout at maturity:Share in losses beyond 5% decline; otherwise, par
Call:At par plus 10.97% premium per year if basket closes at or above its starting value on July 25, Oct. 24, 2011 or Jan. 30, 2012
Initial prices:$60.24 for EAFE; $46.79 for EM
Pricing date:Jan. 27
Settlement date:Feb. 4
Underwriter:Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:1.25%
Cusip:06052R534

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