Bank of America to price 95% principal-protected step up notes linked to BRIC currency basket

By E. Janene Geiss

Philadelphia, Aug. 28 - Bank of America Corp. plans to price zero-coupon 95% principal-protected step up notes due in two years linked to a basket of currencies, according to a FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Brazilian real, Russian ruble, Indian rupee and Chinese renminbi.

If the basket appreciates relative to the dollar, the payout at maturity will be par of $10.00 plus the greater of the threshold value and the basket gain. The threshold value is expected to be 10% to 16% and will be set at pricing.

Investors will be exposed to any depreciation in the basket relative to the dollar, subject to a minimum payout of $9.50 per note.

The notes will price and settle in September.

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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