New Issue: Bank of America prices $10.39 million Stars linked to iShares MSCI EAFE index fund

By Angela McDaniels

Tacoma, Wash., June 29 - Bank of America Corp. priced $10.39 million of 0% Strategic Accelerated Redemption Securities due July 6, 2011 linked to the iShares MSCI EAFE index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If shares of the exchange-traded fund close at or above the initial share price of any of three semiannual call dates, the notes will be called and investors will receive par of $10 plus an annualized call premium of 15.8%.

If the notes are not called, the payout at maturity will be par if the final share price is at least 90% of the initial price. Otherwise, investors will lose 1% for each 1% that the share price declines beyond 10%.

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

Issuer:	Bank of America Corp.
Issue:	Strategic Accelerated Redemption Securities
Underlying ETF:	iShares MSCI EAFE index fund
Amount:	$10.39 million
Maturity:	July 6, 2011
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par if final share price is 90% of the initial price or higher; otherwise, 1% loss for every 1% decline beyond 10%
Call:	Automatically if fund's shares close at or above initial price on an observation date; payout is $11.58 per note if called June 30, 2010, $12.37 per note if called Dec. 30, 2010 and $13.16 per note if called June 28, 2011
Initial share price:	$45.51
Pricing date:	June 25
Settlement date:	July 2
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	2%

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