New Issue: Bank of America prices $56.83 million market-linked step up notes tied to S&P 500

By Marisa Wong

Madison, Wis., Aug. 27 - Bank of America Corp. priced $56.83 million of 0% market-linked step up notes due Aug. 22, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above the initial level, the payout at maturity will be par of $10 plus the greater of the step up payment and the index return. The step up payment is 40.5%.

If the final index level is at least 85% of the initial level, investors will receive par. Otherwise, investors will be exposed to any index decline beyond 15%.

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

Issuer:	Bank of America Corp.
Issue:	Market-linked step up notes
Underlying index:	S&P 500 index
Amount:	$56,831,730
Maturity:	Aug. 22, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus greater of index gain and 40.5%; exposure to losses beyond 15%
Initial index level:	1,055.33
Threshold level:	897.03, of 85% of initial level
Pricing date:	Aug. 25
Settlement date:	Sept. 2
Agents:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	2.5%
Cusip:	06052K521

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