Bank of America offers 0% Mitts tied to Brazilian, Mexican currencies

By E. Janene Geiss

Philadelphia, Oct. 29 - Bank of America plans to price 0% Market Index Target-Term Securities due November 2011 linked to the performance of two currencies against the dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of equal weights of the Brazilian real and Mexican peso.

The payout at maturity will be par of $10.00 plus 500% of any gain in the basket over the dollar, subject to a maximum payout at maturity of 17% to 23%. If the basket declines by 5% or less, the payout will be par. Investors will share in any losses beyond any basket decline beyond 5%.

The notes are expected to price in November and settle in December.

Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the agents.

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