By Jennifer Chiou
New York, Sept. 3 - Bank of America Corp. priced $22,494,680 of 0% relative value Strategic Accelerated Redemption Securities due Sept. 8, 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 10% 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 any of the quarterly observation dates.
If the notes are not called, the payout at maturity will be par if the return of the equity trust minus the return of the Treasury fund is up to negative 5%. Otherwise, investors will share in up to 95% of losses.
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: | $22,494,680
|
Maturity: | Sept. 8, 2014
|
Coupon: | 0%
|
Price: | Par of $10
|
Payout at maturity: | Par if return of equity trust minus return of Treasury fund is up to negative 5%; otherwise, exposure to losses with up to 95% of principal at risk
|
Call: | At par plus 10% per year if performance of equity trust meets or exceeds performance of Treasury fund on any of the quarterly observation dates
|
Pricing date: | Aug. 29
|
Settlement date: | Sept. 6
|
Agent: | BofA Merrill Lynch
|
Fees: | 1.25%
|
Cusip: | 06053F489
|
© 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.