By Angela McDaniels
Tacoma, Wash., Feb. 25 - Bank of America Corp. priced $21.49 million of 0% relative value Strategic Accelerated Redemption Securities due March 3, 2014 linked to the performance of the SPDR S&P 500 ETF Trust versus the iShares Barclays 20+ Year Treasury Bond Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium of 12.2% per year if the performance of the SPDR S&P 500 ETF Trust meets or exceeds the performance of the iShares Barclays 20+ Year Treasury Bond Fund on Aug. 23, 2013, Nov. 22, 2013 or Feb. 24, 2014.
If the notes are not called, the payout at maturity will be par plus the return of the equity trust minus the return of the Treasury fund. Because the last call observation date is also the final valuation date, if the notes are not called, the return of the equity trust will be less than the return of the Treasury fund and investors will lose principal at maturity.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Relative value Strategic Accelerated Redemption Securities
|
| Underlying ETFs: SPDR S&P 500 ETF Trust and iShares Barclays 20+ Year Treasury Bond Fund
|
| Amount: | $21,485,763.60
|
| Maturity: | March 3, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus return of equity trust minus return of Treasury fund
|
| Call: | At par plus 12.2% per year if performance of equity trust meets or exceeds performance of Treasury fund on Aug. 23, 2013, Nov. 22, 2013 or Feb. 24, 2014
|
| Initial levels: | $150.40 for equity trust and $116.95 for Treasury fund
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 28
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 06053E441
|
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