Accelerated Return Notes® Linked to the Common Stock of Apple Inc. | This graph reflects the hypothetical return on the notes, based on the mid-point of the range(s) set forth in the table to the left. This graph has been prepared for purposes of illustration only. | |
Issuer | Bank of America Corporation (BAC) | |
Principal Amount | $10.00 per unit | |
Term | Approximately 12 months | |
Market Measure | Common Stock of Apple Inc. (the Underlying Company) (NASDAQ symbol: AAPL) | |
Payout Profile at Maturity | ● 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value ● 1-to-1 downside exposure to decreases in the Market Measure, with 100% of your investment at risk | |
Capped Value | [$11.90 to $12.30] per unit, a [19% to 23%] return over the principal amount, to be determined on the pricing date. | |
Interest Payments | None | |
Preliminary Offering Documents | http://www.sec.gov/Archives/edgar/data/70858/000152041216003384/bac-fos27cuivnpufmam_1335.htm | |
Exchange Listing | No |
● | Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. |
● | Payments on the notes are subject to the credit risk of BAC, and actual or perceived changes in the creditworthiness of BAC are expected to affect the value of the notes. If BAC becomes insolvent or is unable to pay its obligations, you may lose your entire investment. |
● | Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Market Measure. |
● | The initial estimated value of the notes on the pricing date will be less than their public offering price. |
● | If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date. |
● | You will have no rights of a holder of the Market Measure, and you will not be entitled to receive shares of the Market Measure or dividends or other distributions by the issuer of the Market Measure. |
● | The issuer, MLPF&S and their respective affiliates do not control the Underlying Company and are not responsible for any disclosure made by the Underlying Company. The Underlying Company will have no obligations relating to the notes. |
● | The Redemption Amount will not be adjusted for all corporate events that could affect the Market Measure. |