New Issue: Bank of America prices $14.89 million callable capped notes linked to CMS rates

By Jennifer Chiou

New York, May 28 - Bank of America Corp. priced $14.89 million of callable capped notes due June 7, 2022 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is fixed at 10% for the first year. Beginning June 7, 2011, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.435%, subject to a floor of zero and a cap of 10% per year in each interest period. Interest is payable quarterly.

The payout at maturity will be par.

Beginning June 7, 2013, the notes are callable at par on any interest payment date.

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

Issuer:	Bank of America Corp.
Issue:	Callable capped notes
Underlying rates:	30-year and two-year Constant Maturity Swap rates
Amount:	$14,888,000
Maturity:	June 7, 2022
Coupon:	10% for the first year; beginning June 7, 2011, four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.435%, with a floor of zero and a cap of 10%; payable quarterly
Price:	Par
Payout at maturity:	Par
Call option:	At par on interest payment dates from June 7, 2013 onward
Pricing date:	May 26
Settlement date:	June 7
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC
Fees:	1.75%
Cusip:	06048WBY5

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