Bank of America to sell two-year Stars linked to S&P 500 index

By Susanna Moon

Chicago, Nov. 24 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due January 2012 tied to the S&P 500 index, according to an FWP with the Securities and Exchange Commission.

The notes will be called at a premium of 8% to 12% per year if the index closes at or above its initial level on any of three observation dates.

For each $10.00 note, the call amount $10.80 to $11.20 if the notes are called in December 2010, $11.20 to $11.80 if called in July 2011 and $11.60 to $12.40 if called in December 2011.

If the notes are not called, investors will receive par if the index falls by up to 10% and will be exposed to any drop beyond 10%.

The notes will price and settle in December.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

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