New Issue: RBC sells $6.77 million six-month Bear Accelerated Return Notes on S&P 500 via Merrill

By Susanna Moon

Chicago, Oct. 13 - Royal Bank of Canada priced $6.77 million of 0% Bear Accelerated Return Notes due April 29, 2011 based on the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

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

The payout at maturity will be par of $10.00 plus five times the absolute value of any decline in the index, up to a maximum payout of $11.20 per note.

Investors will lose 1% for every 1% index gain.

Issuer:	Royal Bank of Canada
Issue:	Bear Accelerated Return Notes
Underlying index:	S&P 500
Amount:	$6,766,960
Maturity:	April 29, 2011
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 500% of the absolute value of any index loss, capped at 12%; 1% loss for every 1% index gain
Initial index level:	1,165.15
Pricing date:	Oct. 8
Settlement date:	Oct. 18
Underwriter:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	1%
Cusip:	78008A873

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