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Bank of America to price callable capped notes linked to CMS rates
Madison, Wis., Oct. 26 - Bank of America Corp. plans to price callable capped notes due Dec. 15, 2030 based on the 20-year and five-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 11% for the first two years. After that, the rate will be four times the spread of the 20-year CMS rate over the five-year CMS rate minus a strike of 12.5 basis points, up to a maximum of 11%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any interest payment date beginning Dec. 15, 2015.
The notes (Cusip: 06048WET3) will settle on Dec. 15.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
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