Rev. Rul. 86-1

1986-1 C.B. 295, 1986-1 I.R.B. 5.

FEDERAL SHORT-TERM, MID-TERM, AND LONG-TERM RATES

Published: January 6, 1986

Section 1274.-Determination of Issue price in the Case of Certain Debt Instruments Issued for Property

(Also Sections 280G, 467, 468, 483, 7872; 1.483-1.)

  Federal short-term, mid-term, and long-term rates. For purposes of section

1274(d) of the Code, relating to certain transactions in which a debt instrument is issued for property, a table sets forth the applicable federal short-term, mid-term, and long-term rates for January 1986.

  For purposes of section 1274(d) of the Internal Revenue Code, the short-term, mid-term, and long-term applicable federal rates (AFR) for the month of January

1986 are as follows:

PERIOD FOR COMPOUNDING

Annual Semiannual Quarterly Monthly
______ __________ _________ _______

SHORT-TERM
__________
AFR 8.32% 8.15% 8.07% 8.01%
110% AFR 9.17% 8.97% 8.87% 8.81%
120% AFR 10.02% 9.78% 9.66% 9.59%

MID-TERM
________

AFR 9.44% 9.23% 9.13% 9.06%
110% AFR 10.41% 10.15% 10.02% 9.94%
120% AFR 11.39% 11.08% 10.93% 10.83%

LONG-TERM
_________

AFR 10.13% 9.89% 9.77% 9.69%
110% AFR 11.18% 10.88% 10.74% 10.64%
120% AFR 12.22% 11.87% 11.70% 11.59%

Rev. Rul. 86-1, 1986-1 C.B. 295, 1986-1 I.R.B. 5.