By Angela McDaniels
Tacoma, Wash., Jan. 30 - Bank of America Corp. priced $1.36 million of 0% digital return notes due Feb. 2, 2014 linked to the 30-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
If the final 30-year CMS rate is greater than the initial 30-year CMS rate plus 100 basis points, the payout at maturity will be par plus 18%.
If the final 30-year CMS rate is less than the initial 30-year CMS rate minus 100 basis points, the payout will be $850 per $1,000 principal amount.
In all other cases, the payout will be par.
Bank of America Merrill Lynch is the underwriter.
Issuer: | Bank of America Corp.
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Issue: | Digital return notes
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Underlying: | 30-year Constant Maturity Swap rate
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Amount: | $1,363,000
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Maturity: | Feb. 2, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final 30-year CMS rate is more than 3.802%, par plus 18%; if final 30-year CMS rate is less than 1.802%, 85% of par; otherwise, par
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Initial CMS rate | : | 2.802%
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Pricing date: | Jan. 26
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Settlement date: | Feb. 2
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Underwriter: | Bank of America Merrill Lynch
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Fees: | 1.75%
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Cusip: | 06048WKD1
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