Bank of America to price floaters linked to Consumer Price Index

By Angela McDaniels

Tacoma, Wash., Aug. 21 - Bank of America Corp. plans to price floating-rate notes due between Sept. 26, 2012 and Sept. 26, 2013 linked to the Consumer Price Index, according to a 424B5 filing with the Securities and Exchange Commission.

Interest will be payable monthly. It will accrue at an annualized rate equal to the year-over-year change in the index level - where the initial level is the level 15 months prior to the start of the interest period and the final level is the level three months prior to the start of the interest period - multiplied by the participation rate, which will be at least 110%. If the year-over-year change is negative, no interest will be paid for that month.

The payout at maturity will be par.

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. will be the agents.

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