Bank of America plans nine-month 0% Stars linked to corn futures

By Marisa Wong

Madison, Wis., May 19 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due March 2012 linked to the front month corn futures contract, according to an FWP filing with the Securities and Exchange Commission.

If the price of corn futures finishes at or above its initial level on the observation date in February 2012, the notes will be called at par of $10 plus a premium of 10% to 14%. The exact call premium will be set at pricing.

Investors will receive par at maturity if the price of corn futures falls by up to 15% and will be exposed to losses beyond 15%.

The notes will price in May and settle in June.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.

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