Bank of America plans 0% notes linked to Canadian dollar, yen

By Susanna Moon

Chicago, Aug. 26 - Bank of America plans to price 0% notes due Sept. 24, 2010 linked to an equally weighted basket of two currencies relative to gains in the U.S. dollar, according to a 424B5 filing with the Securities and Exchange Commission.

Underlying currencies are the Canadian dollar and the Japanese yen.

If the basket underperformance is less than or equal to zero, the payout at maturity will be par.

If the basket underperformance is less than or equal to the digital percentage of 6%, then the payout will be par plus 6%.

If the basket underperformance is greater than the digital percentage, investors will receive par times the basket underperformance.

The exchange rate of a basket currency gains as it weakens against the U.S. dollar.

The notes are expected to price on Sept. 23 and settle on Sept. 26.

Banc of America Securities LLC and Banc of America Investment Services, Inc. are the agents.

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