New Issue: Bank of America sells $17.04 million market-linked step up notes on S&P 500

By Susanna Moon

Chicago, Feb. 26 - Bank of America Corp. priced $17.04 million of 0% market-linked step up notes based on the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above the step-up level, the payout at maturity will be par of $10 plus the greater of the step up payment and the index return. The step up payment is 26.1%.

Investors will receive par if the index declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.

The issuer said it applied to list the notes on NYSE Arca under the symbol "MQC."

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

Issuer:	Bank of America Corp.
Issue:	Market-linked step up notes
Underlying index:	S&P 500 index
Amount:	$17.04 million
Maturity:	Feb. 24, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus greater of index gain and step-up payment; 1% loss for every 1% drop beyond 5%
Initial index level:	1,105.24
Step-up value:		1,393.71, or 126.10% of initial level
Threshold level:	1,049.98, or 90% of initial level
Pricing date:	Feb. 24
Settlement date:	March 4
Agents:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	2.25%
Cusip:	06052H197

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