By Toni Weeks
San Diego, May 3 - Bank of America Corp. priced $4.04 million of 0% Strategic Return Notes due April 29, 2016 linked to the Investable Volatility index, according to a 424B2 filing with the Securities and Exchange Commission.
The index provides a measure of market volatility in the equity markets and is designed to measure the return of an investment in the forward implied volatility of the S&P 500 index for a three-month period with a mid-point about five months in the future.
Beginning in July 2012, the notes will be exchangeable on a quarterly basis.
For each $10.00 principal amount, the payout at maturity or upon exchange will be $9.80 plus the index return. The final index level will be reduced by an index adjustment factor of 0.75% per year, which accrues daily.
Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Strategic Return Notes
|
| Underlying index: | Investable Volatility index
|
| Amount: | $4.04 million
|
| Maturity: | April 29, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | $9.80 plus index return
|
| Exchange option: | On a quarterly basis beginning in July 2012; payout determined in same way as at maturity
|
| Initial index level: | Average of index's closing levels on five days ending March 23, 2016; reduced by 0.75% per year
|
| Pricing date: | April 28
|
| Settlement date: | May 9
|
| Underwriter: | Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06050R312
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
