BofA plans Relative Value Stars on SPDR Gold trust, PowerShares DB U.S. Dollar bullish fund

By Marisa Wong

Madison, Wis., March 25 - Bank of America Corp. plans to price one-year 0% Relative Value Strategic Accelerated Redemption Securities linked to the performance of the SPDR Gold trust versus the PowerShares DB U.S. Dollar Index bullish fund, according to an FWP filing with the Securities and Exchange Commission.

If the performance of the SPDR trust exceeds the performance of the PowerShares fund on any of three call observation dates, the notes will be called at par of $10 plus a premium of 11% to 15% per year. The observation dates are expected to fall in October 2011, January 2012 and April 2012. The exact premium and dates will be set at pricing.

If the notes are not called, the payout at maturity will be par plus the difference of the SPDR trust return minus the PowerShares fund return. Because the last call observation date is also the final valuation date, if the notes are not called, the index return will be negative and investors will lose principal at maturity.

The notes will price in April and settle in May.

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

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