Bank of America plans Stars linked to iShares MSCI EAFE, EM funds

By Jennifer Chiou

New York, July 29 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due September 2014 linked to a basket of equally weighted funds, according to an FWP with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the agent.

The two funds are the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund.

The notes will be called at par of $10 plus an annualized call premium of 8% to 12% if the basket closes at or above the initial level on any of three observation dates. The observation dates will be in February 2014, May 2014 and August 2014.

If the notes are not called and the basket finishes at or above 95% of the initial level, the payout at maturity will be par.

Otherwise, investors will share in any losses beyond 5%.

The notes are expected to price in August and settle in September.

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