Bank of America to price Relative Value Stars linked to SPDR S&P 500, iShares Treasury ETF

By Angela McDaniels

Tacoma, Wash., May 5 - Bank of America Corp. plans to price 0% Relative Value Strategic Accelerated Redemption Securities due June 2012 linked to the performance of the SPDR S&P 500 ETF Trust versus the iShares Barclays 20+ Year Treasury Bond Fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a premium of 10% to 14% per year if the performance of the SPDR S&P 500 ETF Trust meets or exceeds the performance of the iShares Barclays 20+ Year Treasury Bond Fund on any of the three observation dates, which will fall in November, February 2012 and May 2012.

If the notes are not called, the payout at maturity will be par plus the return of the equity trust minus the return of the Treasury fund. Because the last call observation date is also the final valuation date, if the notes are not called, the return of the equity trust will be less than the return of the Treasury fund and investors will lose principal at maturity.

The notes are expected to price in May and settle in June.

Bank of America Merrill Lynch is the agent.

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